O.C. Changes Rules on Contractor Insurance

County officials have adopted new procedures to guard against problems caused when a taxi firm at John Wayne Airport failed to provide a DMV certification of insurance and was removed from airport service, a risk manager said Tuesday.

Contractors who are self-insured or have a deductible of $5,000 or more will automatically have their insurance documents reviewed by the county’s risk management office. In addition, contractors providing any type of vehicle service such as taxis must have zero-deductible insurance and have $2-million coverage, an increase of $1 million.

A Taxi Cab company was recommended by the county’s Airport Commission as the top firm to retain an airport contract a week before the Board of Supervisors was to vote on the contract.

But a day before the board’s March 21 meeting, A Taxi was removed from consideration because it failed to provide the certification of insurance. The contract was awarded to a competing firm.

Last week, A Taxi Cab filed a claim against the county seeking damages of more than $1 million.