Vapor product licensees must obtain insurance coverage
described in this section. The intent of the required insurance is to protect
the consumer should there be any claims, suits, actions, costs, damages or
expenses arising from any negligent or intentional act or omission of the vapor
product licensees. Vapor product licensees must furnish evidence in the form of
a certificate of insurance satisfactory to the board that insurance, in the
following kinds and minimum amounts, has been secured. Failure to provide proof
of insurance may result in license cancellation.
(1) Commercial general liability insurance:
The
licensee must at all times carry and maintain commercial general liability
insurance or commercial umbrella insurance for bodily injury and property
damage arising out of licensed activities. The limits of liability insurance
must not be less than one million dollars.
(a)
This insurance must cover such claims as may be caused by any act, omission, or
negligence of the licensee or its officers, agents, representatives, assigns,
or servants.
(b) The insurance must
also cover bodily injury, including disease, illness and death, and property
damage arising out of the licensee's premises/operations, products, and
personal injury.
(2)
Insurance carrier rating: The insurance required in subsection (1) of this
section must be issued by an insurance company authorized to do business within
the state of Washington. Insurance is to be placed with a carrier that has a
rating of A - Class VII or better in the most recently published edition of
Best's Reports. If an insurer is not admitted, all insurance
policies and procedures for issuing the insurance policies must comply with
chapters 48.15 RCW and
284-15 WAC.
(3) Additional insured. The state and its
employees, agents, and volunteers must be named as an additional insured on
insurance policies required under this section. All policies must be primary
over any other valid and collectable insurance.