HomeMy WebLinkAbout6/27/2007 - STAFF REPORTS - 2.B. �O�7AlM SAF
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City Council Staff Report
DATE: JUNE 27, 2007 CONSENT CALENDAR
SUBJECT: Insurance Renewals for the City's Airport Liability, Aero Squadron Aircraft,
All-Risk Property, Earthquake/Flood (Primary Level), Crime, Boiler &
Machinery, Excess General Liability, and Excess Workers' Compensation
FROM: David H. Ready, City Manager
BY: Assistant City Manager— Administrative Services
SUMMARY
The City is self-insured and annually purchases various lines of insurance coverage to
minimize the adverse effects or accidental losses and claims against the City. This
action would authorize the purchase of various lines of insurance for Fiscal Year 2007-
08 in an amount not-to-exceed $668,179. This amount represents a savings of over
$219,000 from the current fiscal year.
RECOMMENDATION:
1. Adopt Minute Order No. approving a Contract Services Agreement with
Davis & Graeber Insurance Services, Incorporated for insurance brokerage
services for a one (1) year term in an amount not-to-exceed $60,000.
2. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA AUTHORIZING DAVIS & GRAEBER
INSURANCE SERVICES, AS THE CITY'S BROKER OF RECORD, TO
PURCHASE AIRPORT LIABILITY, AERO SQUADRON AIRCRAFT, ALL-RISK
PROPERTY, EARTHQUAKE/FLOOD (PRIMARY LEVEL), CRIME, BOILER &
MACHINERY, AND GENERAL LIABILITY INSURANCE POLICIES, EFFECTIVE
JULY 1, 2007, IN AN AMOUNT NOT TO EXCEED $593,142.
3. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA AUTHORIZING KEENAN &
ASSOCIATES, AS THE CITY'S BROKER OF RECORD, TO PURCHASE
EXCESS WORKERS' COMPENSATION INSURANCE, EFFECTIVE JULY 1,
2007, IN AN AMOUNT NOT TO EXCEED $75,037.
4. Authorize the City Manager to execute the necessary documents.
ITEM NO.
City Council Staff Report
June 27, 2007 -- Page 2
Annual Insurance Renewals
STAFF ANALYSIS:
The City is self insured for major risk programs, such as general liability, auto liability
and workers' compensation. In order to protect the assets of the City from potential
loss, the City purchases various lines of insurance coverage, including general liability,
automotive, property and excess workers' compensation insurance.
To assist in the purchase of various lines of insurance, the City has contracted with
Davis & Graeber Insurance Services since 2001. The existing agreement with Davis &
Graeber has expired. Staff is recommending that the City Council approve a new
agreement for a one (1) year term in the amount of $60,000 for brokerage services.
This amount is the same the City paid under the prior agreement.
Davis & Graeber has solicited pricing on the City's insurance portfolio. The following is
a summary of last year's premiums, and staff's recommendation for the July 1 renewals
(based on the lowest quoted price and coverage):
Coverage Premium 7/1/06 throw h 6/30/07 Premium 7/1107 through 6/30/08
General Liability Premium $191,760 $178,422
Self-Insured Retention $800,000 Employment $400,000 Employment
Practices/$400,000 All Other Practices/$400,000 All Other
Limits $10,000,000 $10,000,000
All-Risk Property Premium $357,839 $350,481
Deductible $60,000 for Earth $50,000 for Earth
Limits Movement/$100,000 Movement/$100,000
Flood/$10,000 All Other Losses Flood/$10,000 All Other Losses
$225,000,000 $336,127 802
Boiler& Machinery Premium Coverage is included in All-Risk Coverage is included in All-Risk
and Quake/Flood Premiums and Quake/Flood Premiums
Deductible $10 000 $10,000
Airport Liability Premium $54,933 $53,008
Deductible $1,000 $1,000
Limits S50 000,000 $50,000,000
Aero Squadron Premium $7,660 $7,609
Deductible $500 In Motion/$1,000 Static $500 In Motion/$1,000 Static
Limits $5,000,000 $5,000,000
Crime Premium $3,358 $3,532
Deductible $10,000/S 1,000 $10,000/$1,000
Limits $1,000,0001$100,000/S300 000 $1,000,000/$100,000/S300 000
Total Premiums $615,550 $693,142
The renewals reflect an overall decrease of approximately 3.5%, or $22,408, over last
year's premiums. This decrease is a result of higher profits for insurers and a reduction
in the number of catastrophic claims over the prior year. According to the Risk and
Insurance Management Society, 2006 was a banner year for the insurance industry with
some insurers reporting record profits.
00012
City Council Staff Report
June 27, 2007 -- Page 3
Annual Insurance Renewals
The Quake/Flood, All-Risk Property, and Boiler & Machinery quote is offered by
Affiliated FM as one policy. Although terrorism coverage for both certified and non-
certified terrorism is offered, staff is not recommending that it be included with the
renewal.
The Airport Liability quote is offered by ACE USA and provides for optional War &
Terrorism coverage for an additional $44,836. This policy is limited to losses at City-
owned property and does not cover revenue losses from terrorist attacks occurring
elsewhere. As a result, staff is not recommending the War & Terrorism coverage as
part of the insurance renewal.
For the past several months, staff has been exploring various options to reduce long-
term overall costs and risks, while broadening coverage to protect the City. In
evaluating various options, staff has determined that the City can achieve a significant
savings by purchasing excess workers' compensation insurance through another
broker.
Maintenance of excess workers' compensation insurance is important to protect the City
from the negative financial consequences of potential catastrophes involving multiple
employee injuries or deaths from occurrences, such as major fires, police activities,
terrorist attacks and earthquakes during work hours. The City currently pays $271,779
a year for $25,000,000 in excess workers' compensation coverage.
This spring, staff meet with Keenan & Associates to discuss their insurance program.
Staff has determined that is can significantly reduce the amount it pays for excess
workers' compensation insurance, as well as decrease the self-insurance retention
(SIR) limits for public safety employees, from $2M to $1 M per claim, by purchasing
through Keenan & Associates. In comparison, the quote the City received from Davis &
Graeber for excess workers' compensation insurance was $239,198 for the same
coverage amount as Keenan & Associates. In addition, the policy proposed by Davis &
Graeber has a SIR of $21VI per claim for public safety employees which is a $1M higher
than the policy proposed by Keenan & Associates. The table summarizes the two
quotes:
Coverage Premium 7/1/07 through 6/30108 Premium 7/1/07 through 6/30/08
Davis &Graeber Keenan &Associates
Excess Workers' Compensation $239,198 $75,037
SIR-- Police & Fire employees $2,000,000 $1,000,000
All other employees $1,000,000 $1,000,000
Limits $25,000,000 each accident $25,000,000 each accident
Staff is recommending that the City Council authorize the purchase of excess workers
compensation insurance through Keenan & Associates the City for a total savings of
$164,161 in Fiscal Year 2007-08.
Keenan & Associates is the 18th largest insurance broker in the United States. They
work primarily with school districts and public agencies. Keenan & Associates currently
0�)103
i
City Council Staff Report
June 27, 2007 -- Page 4
Annual Insurance Renewals
serves over 700 public agencies statewide, including all of the local school districts
(Palm Springs USD, Coachella USD, and Desert Sands USD).
Staff will continue to explore other ideas to reduce insurance costs over the coming
months including implementing a loss prevention program to improve employee
productivity and reduce the costs by minimizing the number of work-related injuries. In
addition, staff is planning to issue a Request for Proposals for insurance and loss
control, safety and risk retention services later this fall. The vendor that is selected
through this process will serve as the City's new broker of record for insurance renewals
in Fiscal Year 2008-09.
FISCAL IMPACT:
This is a budgeted expense. Sufficient funds are available in the Risk Management
Fund and will be allocated to the following accounts: 48640 (General Liability
Insurance); 48665 (Aircraft Liability); 48670 (Crime/Fidelity Insurance); 48675 (Airport
Liability); 48655 (Earthquake Insurance); 48690 (Property Insurance); 48410 (Workers'
Compensation); and 43232 (Brokerage Fee).
Tro L. Butzl istant City Manager David H. Ready, Cit ger
A inistrativ Se 'ces
Attachments.
1. Minute Order
2. Resolution (2)
3. Davis & Graeber Insurance Renewal Proposal
MINUTE ORDER NO.
APPROVING A CONTRACT SERVICES AGREEMENT
WITH DAVIS & GRAEBER INSURANCE SERVICES,
INCORPORATED FOR INSURANCE BROKERAGE
SERVICES FOR A ONE (1) YEAR TERM IN AN AMOUNT
NOT-TO-EXCEED $60,000.
I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this
Minute Order, approving A Contract Services Agreement With Davis & Graeber
Insurance Services, Incorporated For Insurance Brokerage Services For A One (1) Year
Term In an Amount Not-To-Exceed $60,000, was adopted by the City Council of the
City of Palm Springs, California, in a meeting thereof held on the 27ffi day of June, 2007.
James Thompson, City Clerk
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA AUTHORIZING DAVIS & GRAEBER
INSURANCE SERVICES, AS THE CITY'S BROKER OF RECORD,
TO PURCHASE AIRPORT LIABILITY, AERO SQUADRON
AIRCRAFT, ALL-RISK PROPERTY, EARTHQUAKE/FLOOD
(PRIMARY LEVEL), CRIME, BOILER & MACHINERY, AND
GENERAL LIABILITY INSURANCE POLICIES EFFECTIVE JULY
1, 2007 IN AN AMOUNT NOT TO EXCEED $593,142
WHEREAS The City is self insured for major risk programs, such as general liability,
auto liability and workers' compensation; and
WHEREAS, annually purchases various lines of insurance coverage to minimize the
adverse effects of accidental losses and claims against the City; and
WHEREAS, the City Council appoints a broker of record to purchase insurance policies
for the City
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs,
California authorizes Davis & Graeber Insurance Services, as the City's Broker of
Record, to purchase of the following insurance policies for Fiscal Year 2007-08:
Coyerage Premium 7/1/07 through 6/30/08
General Liability Premium $178,422
Self-Insured Retention $400,000 Employment
Practices/$400,000 All Other
Limits $10,000,000
All-Risk Property Premium $350,481
Deductible $50,000 for Earth
Limits Movem ent/$100,000
Flood/$10,000 All Other Losses
$336,127,802
Boiler&Machinery Premium Coverage is included in All-Risk
and Quake/Flood Premiums
Deductible $10 000
Airport Liability Premium $53,008
Deductible $1,000
Limits $50,000,000
Aero Squadron Premium $7,699
Deductible S500 In Motion/S1,000 Static
Limits $5 000 000
Crime Premium $3,532
Deductible $10,000/$1,000
Limits $1,000,000/$100,000/$300,000
Total Premiums $593,142
ADOPTED this 27th day of June, 2007.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED & APPROVED AS TO FORM
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA AUTHORIZING KEENAN & ASSOCIATES,
AS THE CITY'S BROKER OF RECORD, TO PURCHASE EXCESS
WORKERS' COMPENSATION INSURANCE, EFFECTIVE JULY 1,
2007, IN AN AMOUNT NOT TO EXCEED $75,037
WHEREAS The City is self insured for major risk programs, such as general liability,
auto liability and workers' compensation; and
WHEREAS, annually purchases various lines of insurance coverage to minimize the
adverse effects of accidental losses and claims against the City; and
WHEREAS, the City Council appoints a broker of record to purchase insurance policies
for the City.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs,
California authorizes Keenan & Associates, as the City's Broker of Record, to purchase
the following insurance policy for Fiscal Year 2007-08:
_Coverage Premium 7/1/07 through 6/30/08
Excess Workers' Compensation $75'037
SIR--Police & Fire employees $1,000'000
All other employees $1,000,000
Limits $25,000,000 each accident
ADOPTED this 27"' day of June, 2007.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED & APPROVED AS TO FORM
Insurance Proposal
for
City o Springs
Palm
June 7, 2007
By
Ross B. Jones
Vice President Commercial Marketing
Davis & Graeber Insurance Services, Inc.
470 E. Highland Avenue
P.Q. Box 750
Redlands, CA 92373
(909) 793-2373
Public Entity Excess Liability
Named Insured: City of Palm Springs
Policy Term: July 1, 2007 to July 1, 2008
Insurance Carrier: Everest Indemnity (A+ W Admitted
Coverages: Special Excess Liability for Public Entities
Limits: $10,000,000 Products & Completed Operations hazard Aggregate
510,000,000 Errors & Omissions Liability Aggregate, other than Personal Injury
Offense Wrongful Acts
$10,000,000 Employee Benefit Liability Aggregate
510,000,000 Any One Occurrence or Wrongful Act in Excess of Retained Limit
$10,000,000 Employment Practices Liability Wrongful Acts Aggregate
Deductibles/ $400,000 SIR each Occurrence All other coverages.
Retained Limits: $400,000 SIR each Employment Practices Liability.
Conditions: Act of Terrorism Retained Amount Endorsement including coverage for terrorism.
Time Element Pollution Endorsement
Premium Adjustment Endorsement
90 Days Notice of Cancellation, except for Non-Payment of Premium.
Subject to: Claims audit to be performed during the year.
Limits of Insurance Amendatory Endorsement
Policy Territory Limitation Endorsement
Retained Amount Endorsement
Uninsured/Underinsured Motorist Exclusion
Blanket Additional Insured
Premium: $178,422.00 (Rate: Adjusted at a rate of $3.888 per capita based on a estimated
population of 44,939.)
25% Minium Earned Premium in event of Cancellation
Alternate Quote: Insurance Company of the State of Pennsylvania (A+-� XV) Admitted
Premium: S (Rate: Adjusted at a rate of$4.9734 per capita on a estimated
population of 44,939) Includes taxes, fees & terrorism coverage charge of 52,235.)
Estimated Annual Premium: S225,736.00
Excess Public Entity Coverage:
Everest - See attached quote
A1G - $225,736,00
Westchester- pending
Munich Re - had prior submit on 4/24
Travelers - waiting for additional info
Axis - pending
RSUI - decline
Genesis - quoted $372,000 M&D
or),1 '11
Page 3 of 14
Property All Risk
Named Insured: City of Palm Springs
Policy Term.: duly 1, 2007 to July 1, 2008
insurance Carrier: Affiliated FM insurance Company (A+XV) Admitted
Coverage: All Risk, as defined and limited herein, on Real Property, Personal Property, Extra Expense,
Rental income, Gross Earnings excluding Ordinary Payroll and including Extensions of
Coverage applying at the following locations on schedule with Company.
Limit: $336,127,802.00 This Company's total limit will not exceed the respective Limits of Liability
shown elsewhere for coverage involved. However in no event will the limit exceed
S336,127,802.00 as a result of any one loss, disaster or occurrence, regardless of the number of
perils, coverages or locations involved.
Sub-limit: Earth Movement: $2,500,000 Annual Aggregate
Flood: $2,500,000 Annual Aggregate
Off Premises Power: $1,000,000
Extra Expense: $2,000,000
Ammonia Contamination (B&M) S250,000
ifazardous Substance (B&M) $250,000
Spoilage (B&M) $250,000
Deductible: The following deductible amounts shall apply to each claim for loss or damage under this Policy in the
respective lass categories indicated:
1.Earth Movement: For each occurrence, this company will not be liable for loss or damage to insured property unless the amount
of the loss or damage exceeds 5% of the combined value of property at the location where loss or damage occurs, in accordance
with the valuation section of this policy and annual business interruption value as defined in the Business Interruption Endorsement
attached to this policy ai the time such loss or damage at the location where loss occurs,subject to a minium deductible amount of
$50,000 per location. If coverage is provided for more than one location,this deductible percentage or minium deductible amount will
be calculated for and applied separately to each location.
2. S100,000 Flood (per occurrence for all coverages provided in this policy).
3. Off Premises Power Qualifying Period
In the event of loss or damage covered by this policy,no coverage is provided unless the period of interruption exceeds 24 hours
beginning from the time of loss. if the period of interruption exceeds 24 hours,the loss will be calculated from the original time of
loss, subject to the policy deductible.
4. $5,000 Electronic data Processing,no coverage is provided unless the period of interruption exceeds 48 hours.
5. $10,000 All Other Losses
Special Conditions: The following forms voll be attached at policy issuance:
1 Excludes Crime,Boiler&Machinery and all third party liability coverages.
2.EQSh is included to policy limits,with a 1%deductible of value of property per location
3. Sewer Back-up included.Debris removal S5,000,000 or 25%of loss
4.EDP Equipment included under Personal Property(includes electrical/mechanical breakdown)
5.Newly acquired property(120 days)
Affiliated FM is available to assist the insured in completing recommendations for risk improvement developed as a result of
inspections on this account.For more details and assistance, the insured can contact Account Engineer Farrell Fateird at 818-227-2289.
P�ia-*I.n
Pagc 4 of 14
Annual Premium: $348,481.00 Without Terrorism coverage
$11,336.00 "Terrorismprctniutn:
$359,817.00 Sub-Total Premium with Terrorism:
Inspection Fee: $2,000.00
Total Annual Premium: $361,817.00 IncludingTerTomm
$350,481.00 Without ter roiism included
Breakdown of Premium:
Property Premium: S 134,682.00
Boiler & Machinery $16,048.00
D1C & Flood $2,500,000 Primary S197,751.00
Rate 2007: $79,100.00 per mil
Rate 2006: S76,900.00 per mil
Rate 2005: $47,245.20 per mil
*Certified Terrorism: International instigated terrorism acts that are certified by the Secretary of the Treastity
of the United States that take place within the territory of the United States-
*Non Cerrified Terrorism: Events that occur in the United States when committed by individuals acting on
behalf of foreign people or interests.
Page 5 of 14
Marketing Summary:
Affiliated - quoted
Mt. Hawley- can't compete
London (Price Forbes) - can't compete on the All Risk, but checking what they can do on the lead 2.5 mil quake
Pacific - does not write All Risk coverage for muni's
Westchester- can't do anything on the primary since they are on the excess placement on the DIC
ICW - can't compete
Landmark - can't compete
Arch -pending
Crum & Forster- pending
Essex - can't compete
Endurance - pending
Axis - pending
Allianz -pending
Chubb - pending
AIG - pending
Travelers - can't compete
Primary DIC Marketing:
United States Fire-underwriter thought she could improve on the 2.5 mil lead pricing that Affiliated has
provided, but home office declined as they are not quoting muni's for cat. coverages.
Axis - still pending on the DIC alone- can't compete with the All Risk.
Endurance - pending no response to date.
Essex - can't compete on the all risk, asked thein to look at 2.5 mil DIC only.
Landmark - can't compete on the all risk, asked them to look at 2.5 mil DIC only.
Pacific his. Co. - can't compete on the all risk, asked them to look at 2.5 mil DIC only_
Mt. Hawley- can't compete on the all risk, asked them to look at 2.5 mil DIC only.
London- still looking at options.
Ace- checking to see if they could quote the lead 2.5 mil without jeopardizing their excess placement.
ICW- decline
Chubb - decline due to pricing
AIG -not interested in the 2.5 mil alone- will submit when excess layers come up. Cannot support the All Risk
values needed.
Travelers - decline due pricing needed.
Pending markets may quote by expiration date.
Page 6 of 14
Excess Workers Compensation
Named Insured: City of Palm Springs
Policy Term: July 1, 2007 to July 1, 2008
Insurance Carrier. Midwest Employers Casualty Company-Admitted
Coverages: Specific Excess Workers Compensation
Limits: $25,000,000 Limit Each Accident & Disease
$1,000,000 Employers Liability Each Accident
$2,000,000 Retention leach Accident & Disease, Emp Liab. - Police & Fire
51,000,000 Retention Each Accident & Disease, Emp. Liab. All Others
Conditions: Covered States: California
Coverage is subject to signed application,
Premium: $271,779.00 (Rate: Adjusted at a rate of$.884 per 5100 of payroll on
estimated payroll of$31,129,278.)
Estimated Annual Premium: 5275,183.00
Terrorism: Included in premium
Alternate Quote:
SIR $19500,000 All Employees
Premium: $211,243.00 (Rate: Adjusted at a rate of S.6786 per$100 of payroll on estimated
payroll of$31,129,278.)
Estimated Annual Premium; 5211,243.00
Page 7 of 14
Excess Workers Compensation
Named Insured: City of Palm Springs
Policy Term: July 1, 2007 to July 1, 2008
Insurance Carrier: Arch Insurance Company- Admitted
Coverages: Specific Excess Workers Compensation
Limits: Statutory - Limit Each Accident& Disease
$1,000,000 Employers Liability Each Accident
SIR:
$2,000,000 Retention Each Accident & Disease, Emp Liab. - Police & Fire
51,000,000 Retention Each Accident& Disease, Emp. Liab. All Others
Conditions: Covered States: California
Coverage is subject to signed application,
Premium: 5239,198.16 (Rate: Adjusted at a rate of 5.7533 per 5100 of payroll on
estimated payroll of$31,129,278.)
Estimated Annual Premium: 5239,198.16
Terrorism: Included in premium
Page 8 of 14
Marketing Report:
AIG - 5301,923.00 (revised $271,727.00 rate $.8729)(Statutory $271,727,00)
Genesis - no longer quoting Excess WC.
Wexford (Arch) - needs pilot questionnaires. (Statutory- $239,198.16)
Munich Re - not quoting - capacity- employee concentration
Midwest Employers -pending
Ace- S 1 mil SIR- $444,646
Safety National - prior submit
Travelers - won't be quoting excess WC till late 2007
Midwest Employers Training Program:
Midwest has a webex that takes about 30 minutes.
It is easily accessed by phone and a pc.
They send out the information to attend and no participant needs to leave their Office.
Jim Vita, the Midwest Acct Mgr would provide the demo. Your Client, your
Retailer and anyone from PSG who would like to see the demo will be welcome.
It's the only way that any Prospect can really evaluate Midwest.
No other Excess WC Carrier provides anything like these Services.
Page 9 of 14
Crime Bond
Named Insured: City of Palm Springs
Policy Term: July 1, 2007 to July 1, 2008
Insurance Carrier: Hartford Fire Insurance Company (A+ IX) Admitted
Coverage Form: Crime Shield
Limits: Public Employee Dishonesty per Employee:
Limit Coverage Deductible
$1,000,000 Employee Theft $10,000
$100,000 Forgery 51,000
$300,000 Theft, Disappearance & Destruction
- In & Out$1,000
$50,000 Counterfeit Currency& Money Orders (No ded)
Premium: S 3,532.00 Annual Payment
Page 10 of 14
Airport Liability
Named Insured: City of Palm Springs
Palm Springs International Airport
and all other airport premises necessary and/or incidental to
the operations of the Named Insured.
Policy Term: July 1, 2007 to .July 1, 2008
Insurance Carrier: Ace USA/WEST Westchester Fire (A+ 1X) Admitted
Coverage: Special Airport Liability
Deductible: 51,000.00 Each Loss - 55,000 annual aggregate
Limits:
Bodily Injury & Property Damage 550,000,000 CSL each aircraft/occurrence and in the aggregate
with respect to:
Products/Completed Operations $50,000,000 aggregate
Personal/Advertising Injury $50,000,000 aggregate
Airport Premises $50,000,000
Ground Hangarkeepers $50,000,000 Any one occurrence/aircraft
Premises Medical $5,000/person/$25,000 Per occurrence
Independent Contractors $50,000,000
Incidental Control Tower Liability $50,000,000
Airshow Liability $1,000,000 primary excess of contractor $5,000,000 aggregate
Mobile Equipment on airport premises $50,000,000
Excess auto liability off airport premises $1,000,000/ $50,000,OOOFire Legal Liability
$100,000 each occurrence
Contractual Liability $50,000,000
Non Owned Aircraft Liability 550,000,000
Medical Malpractice Liability 550,000,000 aggregate
War and Associated Perils Excluded
Notice of Cancellation--90 days/10 for non payment
Contingent Liquor Liability $50,000,000
Page 11 of 14 n�.�
Additional Insureds as requiredlncluded
Excess Employers Liability S1,000,000 any one accident/ $50,000,000 occurrence
Date Exclusion & Limited Writeback Included
Passenger Misdirection Included
Goods, Merchandise & Baggage other than as bailee for hire included
Premium: $521412.
Taxes & Fees $ 2,596.
Total $53,008.
War & Terrorism Coverage: $44,835
Page 12 of 14
Aircraft Liability
Named insured: City of Palin Springs
Policy Term: July 1, 2007 to July 1, 2008
Insurance Carrier: Ace USA/WEST Westchester Fire (A+ IX) Admitted
Coverages: 1974 Cessna 182P N47PS Hull 575,000
Deductible: In Motion $500
Not In Motion $100
Limit of Liability: 55,000,000 Combined Single Limit
Territory: USA, Canada, Mexico, Excludes Alaska
Use: Business & Pleasure
Pilots: Any properly certified pilot approved by the Named Insured's Chief Pilot
Personal Injury: $5,000,000/ aggregate
Automatic Attachment of Newly Acquired Aircraft, "Temporary Use of Substitute Aircraft
Spare Parts $10,000 Deductible: $250 each claim
Non-Owned Aircraft Liability $5,000,000
Damage to Non-Owned Hangars and Contents $15,000
Aviation Products Liability for sale of aircraft, aircraft parts, maintenance, fuel, oil, equipment &
services
Independent Contractors Liability $5,000,000
Contractual Liability $5,000,000
Runway Foaming $5,000
Search & Rescue $5,000
7
Page 13 of 14
Physical Damage to Non-Owned Aircraft $50,000 Deductible $1,000
Medical Payments $1,000/$4,000
Personal Effects/Baggage $1,000 each person
Notice of Cancellation 60 days Non-Payment 10 days
Date Exclusion & Writeback
Annual Premium: $6,078.00 without War or Terrorism coverage
$1,159.00 War & Terr. Coverage: $1,159.00
Taxes & Fees $ 461.50
$7,698.50 Total Annual with War & Terr. Coverage
Page 14 oC 14