Frontier Airlines 2006 Annual Report Download - page 201

XII. INSURANCE
A. INSURANCE TYPES
During the term of this Agreement, Contractor agrees to procure and maintain in full force and effect, at its own expense,
policies of insurance with insurers of recognized reputation and responsibility, which provide, unless otherwise provided in the
Aircraft Leases, at a minimum the following insurance:
1. Comprehensive Airline Liability Insurance, including but not limited to Aircraft Liability, Passenger Liability,
Comprehensive General Liability Insurance, War Risk and Allied perils, including both passengers and other third parties, Cargo
Liability and Baggage Liability Insurance, with combined single limits for each and every loss and each aircraft of not less than (i)
U.S. $300,000,000, or (ii) U.S. $3,000,000 per available seat or (iii) the limits that Contractor has in place, whichever is greatest. Any
policies of insurance carried in accordance with this Article XII.A.1 will also contain or be endorsed to contain those provisions set
forth in the attached Appendix G.
2. Aircraft Hull All Risks Insurance, including ground and flight coverage on Contractor’s aircraft, including its engines
and all its parts when installed or temporarily detached from Contractor’s aircraft on a repair-or-replace basis with a deductible United
has reasonably deemed appropriate.
3. Contractor agrees to maintain Workers’ compensation in statutory amounts required by each state in which any work
is performed, in whole or in part; Employers’ Liability, with policy limits not less than $1,000,000 combined single limit, for all of
Contractor’s United Express employees. United shall in no way be liable for any workers’ compensation claims paid by Contractor
related to any of Contractor’s operations. The Contractor’s insurer agrees to waive rights of subrogation against United with respect to
worker’s compensation claims.
4. Contractor agrees to maintain Commercial Automobile Liability Insurance covering all owned, non-owned leased,
and hired automobiles, trucks and trailers, with policy limits of not less than $5,000,000 combined single limit per occurrence to cover
Contractor’s entire United Express operation.
5. Contractor will be responsible for the first $1,000,000 of loss or damage to all automation equipment provided by
United to Contractor. Contractor will evidence property insurance and name United as loss payee.
B. 30-DAY NOTICE
On or before the Effective Date of this Agreement, and not less than thirty (30) days and seven (7) days notice with respect to
war risk, before the expiration or termination date of any insurance required to be maintained by Contractor under Article XII.A
above, Contractor will furnish United with certificates of insurance, substantially in the form of the attached Appendix G, evidencing
compliance with the foregoing requirements, unless otherwise provided in writing between the parties.
C. ALTERATIONS
United has the right to make reasonable alterations in the requirements set forth in this Article XII above, in respect of the
types and scope of coverage and amounts of insurance, any such alteration being deemed reasonable if readily available and if it
becomes the custom in the industry.
D. FAILURE TO MAINTAIN INSURANCE
In the event that Contractor fails to acquire or maintain insurance as herein provided, United may at its option secure such
insurance on Contractor’s behalf at Contractor’s expense.
XIII. LIABILITY AND INDEMNIFICATION
A. EMPLOYER’S LIABILITY AND WORKERS’ COMPENSATION
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠