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equipment or workmanship, Contractor agrees, upon receipt of notice from City, and without expense to City, to promptly repair or replace such material or workmanship and/or correct any and all defects therein. If Contractor, after such notice, fails to proceed promptly to comply with the terms of this guarantee, City may perform the work necessary to effectuate such correction and recover the cost thereof from Contractor or his sureties. Any and all other special guarantees which may be applicable to definite parts of the work under this Agreement shall be considered as an additional guarantee and shall not reduce or limit the guarantee as provided by Contractor pursuant to this paragraph during the first year of the life of such guarantee. 7. Business License. Contractor will obtain and maintain a City of Redwood City Business License for the term of the Agreement, as may be amended from time-to-time. 8. Insurance and Indemnification. Contractor, at its sole cost and expense, shall acquire and maintain in full force and effect throughout the term of this Agreement Workers' Compensation, employer's liability, commercial general liability, and owned, non-owned and hired automobile liability insurance coverage relating to Contractor's Work to be pertormed hereunder covering City's risks in form subject to the approval of the City Attorney. The minimum amounts of coverage corresponding to the aforesaid categories of insurance per insurable event shall be as follows: Insurance Cateaorv Minimum Limits Workers' Compensation Statutory minimum. Employer's Liability $1,000,000.00 per accident for bodily injury or disease. Commercial General Liability $1,000,000.00 per occurrence, $2,000,000 aggregate for bodily injury, personal injury and property damage. Automobile Liability $1,000,000 per occurrence, (coverage required to the extent applicable to Contractor's vehicle usage in performing work hereunder). Any deductibles or self-insured retentions must be declared to, and approved by City. At the option of City either Contractor's insurer shall reduce or eliminate the deductibles or self-insured retentions with respect to City, its Council, commissions, boards, committees, officers, employees and agents or Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.