HomeMy WebLinkAbout6/18/2003 - STAFF REPORTS (32) DATE: June 18, 2003
TO: City Council
FROM: Director of Human Resources
INSURANCE RENEWALS FOR THE CITY'S AIRPORT LIABILITY, AERO SQUADRON
AIRCRAFT, ALL-RISK PROPERTY, EARTHQUAKE/FLOOD (PRIMARY LEVEL), CRIME,
BOILER & MACHINERY, GENERAL LIABILITY, AND AUTO PHYSICAL DAMAGE
(CALEASE) INSURANCE.
RECOMMENDATION:
It is recommended that the City Council adopt the Resolution approving the City's
insurance renewals effective July 1, 2003.
SUMMARY:
The July 1, 2003, renewals reflect an increase over last year's premiums, which is
reflective of conditions in the current insurance market. The City was able to purchase
stand alone coverage for significantly less than the estimated 70% premium increase for
the City's general liability coverage, which resulted in the City of Palm Springs withdrawing
from ICRMA effective July 1, 2003.
BACKGROUND:
The City's Broker of Record, Ross Jones of Davis & Graeber, delivered July 1s1 renewal
quotations and marketing summaries on June 9, 2003. In the current hard market,
achieving our deadline at renewal prices less than what many entities and companies are
currently experiencing continues to be a major achievement.
Following is a summary of last year's premiums, this year's lowest quoted price and the
anticipated (budgeted) projections:
COVERAGE FROM Budgeted
DAVIS&GRAEBER Premium 7/1/02 through 6/30103 Premium 711/03 through 6/30/04 Amount
1) Quake/Flood
Primary Level $126,036 $142,800 $163,847
Insurance Company Affiliated FM Insurance Co. Affiliated FM Insurance Co.
Best's Rating A+XV A+XV
Deductible 5%of Values/$25,000 Minimum 5%of Values/$50,000 Minimum
Limits $2,500,000 $2,500,000
2) All-Risk Property $123,911 $149,791 $163,944
Loss Control Audit Fee $ 2,200 $2,000
Insurance Company Affiliated FM Insurance Co. Affiliated FM Insurance Co.
Bests Rating - A+XV A+XV
Deductible $10,000 $10,000
Property Schedule $189,000,000 $199,034,210
3) Airport Liability $42,649 $51,420 $51,604
Insurance Company ACE USA ACE USA
Best's Rating A+IX A+IX
Deductible $1,500 No deductible
Limits $50,000,000 $50,000,000
Continued:
DAVIS&GRAEBER Premium 7/1/02 through 6/30/03 Premium 7/1/03 through 6/30/04 Budgeted Amount
4) Boiler/Machinery $28,283 $37,645 $31,111
Insurance Company Travelers Travelers
Best's Rating A+XV A+XV
Deductible $25,000/Cogen;$5,000/AII other $25,000/Cogen;$5,000/AII other
Limits $40,000,000 $40,000,000
5) Crime Insurance $3,971 $3,971 $4,762
Insurance Company Hartford Fire Insurance Co. Hartford Fire Insurance Co.
Bests Rating A+XV A+I X
Employee Theft$10,000 Employee Theft$10,000
Deductible All other$1,000 All other$1,000
Limits $1,000,000 $1,000,000
6) Aero Squadron/
Cessna 182P $4,897 $4,905 $5,632
War Coverage
Option $648 $918 $ Inc.
Insurance Company ACE USA ACE USA
Best's Rating A IX A+IX
Deductible $500 $500
Limits $5,000,000 $5,000,000
Continued:
DAVIS&GRAEBER Premium 7/1/02 through 6/30/03 Premium 7/1/03 through 6/30104 Budgeted Amount
7)General Liability $278,006 $229,134 $450,000
(ICRMA)Independent Cities Risk Insurance Company of the State
Insurance Company Management Authority of Pennsylvania
Best's Rating Risk Sharing Public Entity Pool A++XV
Self-Insured
Retention $300,000 $300,000
Limits $20,000,000 $10,000,000
8) Auto Physical
Damage Program $25,487 $82,760 $33,133
Insurance Company Royal Ins.(through ICRMA) Lloyds of London
Best's Rating A VIII
Deductible $20,000 $5,000
Limits $5,388,354 $5,388,354
Many insurance policies are excluding "Acts of Terrorism." The All-Risk Property renewal
(item number 2) from Affiliated FM Insurance Company includes Acts of Terrorism.
There is a caveat to that inclusion: "If a government sponsored alternative risk transfer
vehicle is initiated,"Affiliated FM has the right to remove the City's terrorism coverage.
The Airport Liability backup documentation provides an optional War Coverage premium.
The recommendation above (item number 3) does not include the War Coverage option.
The War Coverage option would increase the premium by $38,250 and the Palm Springs
Airport has excellent security in place. Additionally, if the City were to purchase the war
coverage, lost revenue resulting from terrorist attacks at another (non -owned) location
would not permit us to recover our losses under the terms of the policy, because a city-
owned property loss is a prerequisite for filing a claim for any revenue losses. For this
reason, the benefit of war coverage inclusion does not seem to warrant the premium
increase to purchase this option.
ICRMA's renewal premium for the City's general liability insurance was $467,203.00,
based upon a change in premium methodology where only payroll was used to calculate
premiums. The prior actuarial used both payroll and loss history to calculate premiums.
The quote listed above (item number 7) for liability coverage from Insurance Company of
the State of Pennsylvania has a $10 million dollar limit, with the option to purchase an
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additional limit of $5 million for $51,663 or an additional $10 million for $78,776.
Historically, the City has purchased $10 million dollars of coverage, except for the two
years we participated in the Insurance Authority(ICRMA) that provided a $20 million dollar
limit. According to our insurance broker, Ross Jones, most municipalities carry a $10
million dollar limit.
Sufficient funds are available in the Risk Management insurance premium account
numbers (5904) 48640 (General Liability Insurance), 48665 (Aircraft Liability), 48670
(Crime/Fidelity Insurance), 48675 (Airport Liability), and (5905) 48651 (CaLease
Insurance), 48655 (Earthquake Insurance), 48692 (Boiler/Machinery Insurance), 48690
(Property Insurance). The Finance Director is currently exploring alternate options
concerning the insurance requirements in the CaLease Agreements which requires
rental interruption coverage. The Auto Physical Damage Policy outlined above (item
number 8) provides this coverage.
It is staff's recommendation that the savings from these insurance renewals be retained
in the Risk Management Fund to cover contingencies in other policy renewals and for
anticipated increases in the fund's reserve requirements.
� c
SUSAN E. MILLS, PHR
Director of Human Resources
APPROVE-�—'"'�--��-v'"".�'�(.�,.�.,�.-
City Manager
Attachments: 1. Quotation Packet from Davis & Graeber
2. Resolution approving Carriers and Premiums
3. Quotation Packet from Public Entity Risk Management
Authority (PERMA)
3043
Insurance Proposal
for
City of Palm Springs
June 9, 2003
By
Ross B. Jones
Vice President Commercial Marketing
Davis & Graeber Insurance Services, Inc.
470 E. Highland Avenue
P.O. Box 750
Redlands, CA 92373
(909) 793-2373 3DAY
i
Property All Risk
Named Insured: City of Palm Springs
Policy Term: July 1, 2003 to July 1, 2004
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: $199,034,210 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 $199,034,210
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
Deductible: The following deductible amounts shall apply to each claim for loss or damage under this Policy in the
respective loss categories indicated:
1. Earth Movement: For each occurrence,tlus 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 at the time such loss or damage at the location where loss occurs, subject to a minimum deductible amount of
$50,000 per location. If coverage is provided for more than one location, this deductible percentage or minimum deductible amount
will be calculated for and applied separately to each location.
2. $100,000 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. S5,000 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 will be attached at policy issuance:
1.Excludes Crime,Boiler&Machinery and all third party liability coverages.
2.EQSL is included to policy limits,with a 1%deductible of value of property per location
3. Sewer Back-up included.Debris removal$5,000,000 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 Fatemi at 818-227-
2289.
Annual Premium: $292,591.08 Annual Premium
Inspection Fee: $29000.00 3009-57Total Annual Premium: $2949591.08
Breakdown of Premium:
Property Premium: $1499791.08
DIC & Flood$2,500,000 Primary $142,800.00
Alternate DIC quote:
Company: Lexington Insurance Company
Terms & Conditions: $2,500,000 Primary DIC including Flood
Deductible - Per location: (This deductible is not as good as Affiliated FM occurrence)
Premium: $136,434 including taxes and fees
Recommend staying with the Affiliated FM All Risk and DIC coverage's.
Marketing Summary:
Carriers: 1. Affiliated FM- Quoted
2. Great American - Can not write the All Risk, quake
3. Westchester Fire- must have Terrorism Excluded
4. RLI-Declined cannot write quake/flood
5. Royal Indemnity- Declined because of age and losses
6. Empire Fire & Marine - Could not meet June 1, deadline
7. Commonwealth - Could not compete with current rate
8. Lexington Ins - $136,434.38 including taxes & fees
CITY OF PALM SPRINGS
PROPERTY COVERAGE QUOTATION
Affiliated FMInsurance Company
1.TERMS AND CONDITIONS:
A. Policy Term:
July 1,2003 to July 1,2004
B.NAMED INSURED:
City of Palm Springs, and its wholly or majority owned subsidiaries and any interest which may now exist or hereinafter be
created or acquired which are owned,controlled or operated by any one or more of those named insureds.
C.POLICY LIMIT:
This company's liability will not exceed the respective Limits of Liability shown elsewhere for the coverages involved.
However, in no event will the company's total limit exceed $180,000,000 as a result of any one loss, disaster or occurrence,
regardless of the number of perils,coverages or locations involved.
D.INSURANCE PROVIDED:
All risks, 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:
As per schedule on file dated 05/09/2002
E.SUB-LIMITS:
The following sub-limits will apply on a per occurrence basis and are inclusive of, not in addition to the above limit(s). The
annual aggregate limit of this company's liability for loss or damage caused by Earth Movement and Flood will not exceed the
annual aggregate limit as specified below in any one policy year. The policy year will begin at the inception date of this policy
and be concurrent with the anniversary dates of this policy.
1. $2,500,000 Earth Movement
2. $2,500,000 Flood
3. $1,000,000 Off Premises Power
4. $2,000,000 Extra Expense
5. $100,000 Acts of Terrorism(Annual aggregate limit in any one policy year)
F.EXTENSIONS OF COVERAGE SUB-LIMITS:
The following sub-limits will apply on a per occurrence basis and are inclusive of,not in addition to the above limit(s).
1. $100,000 Fire Fighting Materials and Expenses
2. $100,000 Professional Fees
3. $100,000 Expediting Expenses
4. $100,000 Trees,Shrubs,Plants and Lawns limit$1,000 per item
5. $250,000 Pavements and Roadways
6. $50,000 Land and Water Clean Up Expense
7. $50,000 Installation Floater
8. $500,000 Newly Acquired Property
9. $500,000 Unnamed Locations Coverage
10. $250,000 Fine Arts
12. $250,000 AccounValuable
Receivable
12. $250,000 Valuable Papers and Records
13. $100,000 Electronic Data Processing,Data and Media
14. $5,000,000 Coverage A:Demolition&Increased Cost of Construction
Included in A: Coverage B:Demolition&Increased Cost of Construction
15. $500,000 Errors and Omissions
16. $100,000 Transit Coverage
17. $100,000 A.Non-Certified Act of Terrorism $100,000 B. Certified Act of Terrorism Coverage
Not Covered C.Terrorism Coverage for Locations Outside of the United States.
The above Extensions of Coverage Sub-limits will be the maximum payable for property damage and business interruption(if
applicable),or any combination thereof.
With respect to Items:
7.Installation Floater
8.Newly Acquired Property
9. Unnamed Locations,the specified sub-limit is the maximum amount payable in any one loss or occurrence and can not be
combined with any other limits or sub-limits in this policy.
With respect to Terrorism Coverage in Item 17.A and C each sub-limit will apply as an aggregate limit during any one policy
year for Property Damage and Business Interruption (if provided) combined, and the Company's maximum liability for such
coverage will not exceed such limit during the policy year regardless of the number of locations coverages or occurrences
involved. With respect to Terrorism Coverage in Item 17. B each sub-limit will apply per occurrence. Terrorism coverage in
Items 17, A and B applies only to locations within in the United States and it's territories. The applicable annual aggregate
limit of liability will not exceed the following sub-limits in the aggregate during any policy year.
$100,000 for Unnamed Locations Coverage and Property Removed From Described Locations,for Property Damage
and Business Interruption.
$100,000 for Flood for Property Damage and Business Interruption combined when caused by or resulting from
Terrorism.
These limits shall not include the actual Cash Value portion of fire damage caused by Terrorism.
G.DEDUCTIBLE AMOUNT:
The following deductible amounts shall apply to each claim for loss or damage under this Policy in the respective loss
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 lass 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 at the time such loss or damage at the location where loss occurs,subject to a
minimum deductible amount of $50,000 per occurrence. If coverage is provided for more than one location, this deductible
percentage or minimum deductible amount will be calculated for and applied separately to each location.
2.$100,000 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. $2,500 Electronic data Processing
5. $10,000 All Other Losses
H.SPECIAL TERMS AND CONDITIONS:
1.Vacancv Clause
Permission is given for the Insured to cease operations and for the following location(s) to remain vacant for more than 60
days,provided that the Insured maintains:.
1)Fire protection; and
2)Watch and alarm service; 30#18
As existed prior to the discontinuance of normal operations.
As per schedule,if any.
2.Flood Exclusion
Coverage for the peril of flood, as provided by the Flood Endorsement attached to this policy, is excluded at any location
situated in:
1,Any flood zone or area designated by the Federal Emergency Management Agency(FEMA) as subject to a flood frequency
up to and including the 500 year frequency,or
2. Any flood zone or area for which FEMA has not yet determined the flood hazard frequency or has not yet classified or
designated as being in or out of a flood zone,or any area outside the United States.
The peril of flood is covered in an area protected by dams,levees, dikes,or walls which:
a.Protect such areas from at least the level of the 500 year flood,and have no such openings or flood gates,and
b.Were built by and are either maintained or inspected by the Army Corps of Engineers.
3.Library Books,Periodicals, and Rare Books
Section G.,General Conditions, 14.Basic Valuation,of Form No.PRO AR 2100 is amended to include:
11.Library Books,Periodicals and Rare Books
a.Library Books and Periodicals will be valued at the lesser of:
1. The value designated for each book and periodical (including the cost of re-shelving and processing) as
shown in the declarations; or
2.The cost to repair or restore the article to the condition that existed immediately prior to the loss.
b.Rare Library books will be valued at the lesser of:
1. The cost to repair or restore the rare book on the schedule to the condition that existed immediately prior
to the loss.
2.The cost to replace the rare book; or
3. The value designated for the rare book on the schedule of Rare Books on file with this company, if not
scheduled,the value designated for each rare book as shown in the declarations.
In case of loss or damage to an article that is part of a pair or set, this company will pay the full amount of the value of such
pair or set only if:
a.The damaged article cannot be repaired or restored to its condition before the loss; and
b.The Insured surrenders the remaining article or articles of the pair or set to the company.
4.Historical Replacement Cost Wording
With respect to buildings which are declared by a local, state or federal authority to be of historical significance or of
historical value, such rebuilding, repairing or replacement shall be with material, workmanship processes, technologies and
designs publicly available within the current marketplace and shall not include the cost of creating outdated, archaic or
antiquated materials,workmanship,processes,technologies or design.
5.Acts of Terrorism
This Policy covers insured physical loss or damage caused by or resulting from Terrorism.
In any action, suit or other proceedings where the Company alleges that physical loss or damage is limited by this Additional
Coverage,the burden of proving that such physical loss or damage is not limited by this Policy shall be upon the Insured.
Section H.,Definition,of Form No.PRO AR 2100,is amended to include:
Terrorism is defined as any act,including but not limited to the use of force or violence and/or the treat thereof, of any person
or group(s) of persons, whether acthig alone or on behalf of or in connection with any organization(s) or government(s),
committed for political,religious,ideological or similar purposes including the intention to influence any government and/or to
put the public,or any section of the public,in fear.
It is understood and agreed that the financial impact from the physical loss or damage caused by terrorist acts cannot be
carried by the general insurance industry alone.In the spirit of assistance, this policy continues to provide through the Acts of
Terrorism Additional Coverage, a limited amount of coverage for terrorist acts.However,City of Palm Springs (the Insured),
agrees to allow Affiliated FM Insurance Company to remove terrorism coverage from the policy, no earlier than 30 days
following the availability of a government sponsored alternative risk transfer vehicle that covers acts of terrorism or the
anniversary date of this policy,whichever comes first. ��
I.Index of Forms:
The following forms are made part of this policy:
Title Form No. Edition
Declarations S-1 (7/02)
All Risk Property Coverage PRO AR 2100 (1/99)
Business Interruption Endorsement Extra Expense PRO EE 2260 (1/99)
Business Interruption Endorsement Rental become PRO RI 2250 (1/99)
Business Interruption Endorsement
Gross Earnings Excluding Ordinary Payroll PRO GE 2210 (1/99)
Earth Movement Endorsement PRO EM 2300 (1/98)
Flood Endorsement PRO FL 2310 (1/98)
Off Premises Power Endorsement PRO OPP 2320 (1/99)
California Amendatory Endorsement 6488 (6/00)
Application of Policy to Date and Time Recognition PRO DTR 2400 (11/00)
2.Special Quote Conditions:
a.Excludes Crime,Boiler&Machinery and all third party liability coverages. (Boiler&Machinery quote is available)
b.If Boiler&Machinery is quoted and not ordered,Affiliated FM will not provide Joint Loss Agreements.
c. Coinsurance does not apply subject to receipt dated/signed statement of values and BI worksheet from insured and
acceptance of reported values by the Company.
d.EQSL included to policy limit
e.Sewer back-up included
I.Debris removal$5,000,000 or 25%of loss,whichever is greater.
g.EDP Equipment included under Personal Property(Includes electrical/mechanical breakdown)
h.Newly acquired property(120 days)
This quote does not address any coverage items not mentioned above or not provided for in the specified coverage forms.
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, 2003 to July 1, 2004
Insurance Carrier: Ace USAIWEST Westchester Fire (A+IX) Admitted
Coverage: Special Airport Liability
Limits:
Bodily Injury& Property Damage $50,000,000 CSL each aircraft/occurrence and in the aggregate
with respect to:
Products/Completed Operations $50,000,000 aggregate
Personal/Advertising hijury $50,000,000 aggregate
Airport Premises $50,000,000
Ground Haugarkeepers $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 $50,000,000
Medical Malpractice Liability $50,000,000 aggregate
War and Associated Perils Excluded
Notice of Cancellation—90 days/10 for non payment
Contingent Liquor Liability $50,000,000
Additional Insureds as requiredIncluded
Excess Employers Liability $1,000,000 any one accident/ $50,000,000 occurrence
Date Exclusion & Limited Writebackbicluded
Passenger Misdirection Included
Goods, Merchandise &Baggage other than as bailee for hire
Included
Three Year Policy Endorsement (Offered subject to a annual review) / �
Premium: $51,420.24 +3DM/
War & Terrorism Coverage: $38,250
Boiler & Machinery
Named Insured: City of Palm Springs
Policy Term: July 1, 2003 to July 1, 2004
Insurance Carrier: Travelers Indemnity Company (A+XV) Admitted
Limits: $40,000,000 Per Accident
$212,692,700 TIV
Sublimits: Ammonia Contamination: $250,000
Brands &Labels $250,000
Business Income: $8,000,000
(No coverage at Co-Gen Plants)
Spoilage: $250,000
Off Premises Service Interruption: $250,000
Ordinance or Law: $250,000
Newly Acquired Locations: $1,000,000 90 days
Error in Description: $1,000,000
Expediting Expense: $250,000
Extra Expense: Included with BI
Hazardous Substance: $250,000
"Media" $25,000
Water Damage: $250,000
Deductibles: $5,000 All Other Objects
$25,000 Co-Generation Plants
Business Income: 24 Hours
Extra Expense: 24 Hours
Spoilage: 10% of loss w/min $5,000
Off-Premises Service Interruption: 24 Hours
Ammonia Contamination: $5,000
Premium: $37,545.18 Annual Premium
30APtw
Crime Bond
Named Insured: City of Palm Springs
Policy Term: July 1, 2003 to July 1, 2004
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 $1,000
$300,000 Theft,Disappearance & Destruction
- In & Out$1,000
$50,000 Counterfeit Currency& Money Orders (No ded)
Premium: $ 39971.00
,3 �1 13
Aircraft Liability
Named Insured: City of Palm Springs
Policy Term: July 1, 2003 to July 1,2004
Insurance Carrier: Ace USA/WEST Westchester Fire (A+IX) Admitted
Coverages: 1974 Cessna 182P N47PS Hull $75,000
Deductible: In Motion $500
Not In Motion $100
Limit of Liability: $5,000,000 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: $5,000,0001 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
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: $4,905.00 War & Terr. Coverage: $918.00
$5,382.00 Total Annual with War & Terr. Coverage
Public Entity Excess Liability
Named Insured: City of Palm Springs
Policy Term: July 1, 2003 to July 1, 2004
Insurance Carrier: Insurance Company of the State of Pennsylvania (A++XV) Admitted
Coverages: Special Excess Liability for Public Entities
Limits: $10,000,000 each occurrence or Wrongful Act or Employee Benefits Wrongful Act;
$10,000,000 separate annual aggregate for Products Completed Operations, Errors
& Omissions Liability(Other than Personal Injury Offense
Wrongful Acts) and Employee Benefit Liability, inclusive of
Loss Adjustment Expenses and Costs.
Deductibles: $300,000 SIR each Occurrence Ali other coverages.
$600,000 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.
Premium: $229,133.82 (Rate: Adjusted at a rate of$5.12656 per capita based on a estimated
population of 43,819)
Pending completedquotes:
Alternate quotes:
$351,390 Genesis $1 ndF$2 mil x $300,000 SIR - (need excess coverage to $10 mil)
$433,200 Genesis $5 mil x$500,000 SIR - (need excess coverage to $10 mil)
Excess Liability for Public Entity
Named Insured: City of Palm Springs
Policy Term: July 1, 2003 to July 1, 2004
Insurance Carrier: ARCH Reinsurance Company (A-X)
Coverages: Following Form Excess Liability for Public Entities
Limits: A: $10,000,000 excess of$10,000,000 primary
Or:
B: $5,000,000 excess of$10,000,000 primary
Conditions: Employment Practice Liability Exclusion
Mold Exclusion
Terrorism Exclusion
Premium: A: $78,776.16 flat charge
B: $51,562.50 flat charge
Subject to a 25% minimum earned premium in the event of cancellation.
16
CaLease Auto Physical Damage
Named Insured: City of Palm Springs
Policy Term: July 1, 2003 to July 1, 2004
Insurance Carrier: Lloyds of London
Coverages: CaLease Vehicles as per schedule
Deductible: $5,000 per occurrence
Limit of Liability: $569,163 Any One Vehicle
$1,000,000 Any One Loss
Territory: USA, Canada, 50 mile radius
Annual Premium: $82,760.00 includes taxes and fees
Rate: 1.99% of total annual value
Terrorism coverage: $4,020.60
Public Entity Risk Management Authority (PERMA)
2003-04 Deposit Premium Estimates
City of Palm Springs
2003-04 Payroll
Total $24,079,649
Airport (2,600,000)
Net Payroll $21,479,649
GENERAL LIABILITY - (Limit: $25 Million)
Retention Deposit Premium
$0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $946,560
$10,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $827,303
$25,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $737,261
$50,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $651,797
$125,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $528,398
$250,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $404,781
$500,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . . . . . . . . . . . . . . . . . . $297,297
(Above GL quote includes claims administration and loss control services, such as on-site
training, regional workshops, video library, and policy review. To date, City has received
$870,867 in dividends from this program.)
EMPLOYMENT PRACTICES LIABILITY(EPL) - (Limit: $9 Million)
Retention Deposit Premium
$25,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $90,901
$50,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . . . . . . . . . . . . . . . . . . . . $81,412
$75,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $74,295
$100,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $70,974
$250,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . . . . . . . . . . . . . . . . . . . $54,843
(Above EPL quote includes loss control services, such as 12 hr attorney hotline service,
quarterly workshops, supervisor/manager training)
WORKERS' COMPENSATION - (Limit: $25 Million)
Retention Deposit Premium
$0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,419,083
$250,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $202,687
$500,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $153,757
$750,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $86,723
(Above WC quote excludes TPA fees - City to pay directly)
3D4448
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, APPROVING INSURANCE
RENEWALS FOR THE CITY'S AIRPORT LIABILITY,
AERO SQUADRON AIRCRAFT, ALL-RISK PROPERTY,
EARTHQUAKE/FLOOD (PRIMARY LEVEL), CRIME,
BOILER & MACHINERY, GENERAL LIABILITY, AND
AUTO PHYSICAL DAMAGE (CALEASE).
WHEREAS the City's, Airport Liability, Aero Squadron Aircraft, All-Risk Property,
Earthquake/Flood (Primary Level), Crime, Boiler & Machinery, General Liability,
Auto Physical Damage (CaLease) coverages expire at midnight on June 30, 2003;
and
WHEREAS the City of Palm Springs joined the Independent Cities Risk
Management Authority (ICRMA) on July 1, 2001, and is withdrawing from
participation effective June 30, 2003; and
WHEREAS the City of Palm Springs contracted with Davis & Graeber Insurance
Services, Inc., a California Corporation, on October 1, 2001, to perform services as
the City's Insurance Broker of Record to solicit insurance proposals from qualified
carriers upon renewal of the City's policies; and
WHEREAS the City's Insurance Broker of Record provided insurance quotations
for the City's Airport Liability, Aero Squadron Aircraft, All-Risk Property,
Earthquake/Flood (primary level), Crime, Boiler & Machinery, General Liability, and
Auto Physical Damage (CaLease) on June 9, 2003.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm
Springs, approve the following insurance coverage renewals:
COVERAGE FROM DAVIS&GRAEBER Premium 7/1/03 through 6/30/04
1)Quake/Flood Primary Level Premium $142,800
Insurance Company Affiliated FM Insurance Co.
Best's Rating A+XV
Deductible 5%of Values/$50,000 Minimum
Limits $2,500,000
2)All-Risk Property Ins. Premium $149,791
Plus Loss Control Audit Fee $ 2,000
Insurance Company Affiliated FM Insurance Co.
Best's Rating A+XV
Deductible $10,000
Property Schedule/Limit of Coverage $199,034,210
300i
Continued: FROM DAVIS&GRAEBER Premium 7/1/03 through 6/30/04
3)Airport Liability Insurance Premium $ 51,420
Insurance Company ACE USA
Best's Rating A+IX
Deductible No deductible
Limits $50,000,000
4)Boiler/Machinery Premium $37,545
Insurance Company Travelers
Best's Rating A+XV
Deductible $25,000/Cogen;$5,000/AII other
Limits $40,000,000
5)Crime Insurance Premium $3,971
Insurance Company Hartford Fire Insurance Company
Best's Rating A+XV
Deductible Employee theft$10,000. All others$1,000
Limits $1,000,000
6)Aare Squadron Insurance Premium $4,905
War Coverage $918
Insurance Company ACE USA
Best's Rating A+IX
Deductible $500
Limits $5,000,000
7)General Liability Premium $229,134
Insurance Company of the State of
Insurance Company Pennsylvania
Best's Rating A++XV
Self-Insured Retention $300,000
Limits $10,000,000
8)Auto Physical Damage Premium $82,760
Insurance Company Lloyds of London
Best's Rating
Deductible
$5,000
Limits
Per loss $1,000,000
TOTAL $705,244
ADOPTED this 18" day of June, 2003.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED & APPROVED AS TO FORM