The subdivider shall file with the Town Attorney a general liability insurance policy at the same time he files his performance bond. The Town Board shall approve the policy for form. The policy shall be of the same term as the performance bond and shall be extended in conformance with any extension of the performance bond.

The policy shall insure the Town of Smithtown and the subdivider and shall cover all operations in the development involving the existence and maintenance of property and buildings and contracting operations of every nature, including all public improvements. Said policy shall have limits of liability of $100,000 for bodily injury to each person and $300,000 liability on the aggregate for each accident and property damage liability of $5,000 for each accident and $25,000 aggregate property damage liability.