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Home My WebLink About11 Workers comp insurance Agenda Item # 11 Public , -i Id ACTION To: Board of Directors From: Kim Harris Date: May 21, 2014 Subject: Consideration of the Award of a Contract for Property, Liability and Workers' Compensation Insurance 1. WHY THIS MATTER IS BEFORE THE BOARD The District's annual property, liability and workers' compensation insurance coverage ends June 1, 2014 and must be renewed. 2. HISTORY Marsh Risk & Insurance Services (Marsh) has been the District's insurance broker since 2001. On May 1, 2013, the Board renewed the District contract with Marsh Risk & Insurance Services. 3. NEW INFORMATION The District has worked with Marsh Vice President, Keith Grand, since 2001. Mr. Grand retired from Marsh in July 2013 and Stefan Szulc, Senior Vice President took over Mr. Grand's accounts and currently services the District's policies. In order for the District to give ample opportunity for Mr. Szulc to provide us with his expertise, we felt it prudent to extend the contract with Marsh for one-year. Marsh solicited quotes from various insurance companies and then selected the carriers based on price and rating of the company. The quotes received are summarized below: Coverage Company 2013114 2014/15 Renewal Comments General Liability One Beacon 142,654 147,739 Excess Liability AWAC 22,200 22,900 Workers' Comp AIG 168,860 165,378 Earthquake Landmark/Essex 77,602 80,419 Crime Chubb 4,537 4,543 Pollution Steadfast 18,327 18,868 3-year prepaid Broker Fee Marsh 60,000 60,000 Total 494,180 499,847 Attachment 1 provides more detail of the insurance renewal program proposed by Marsh as compared to the premiums of the expiring coverage. Overall, the proposed insurance costs will be $5,667 (1.15%) more than the prior year. 4. FISCAL IMPACT The proposed property, general liability, and workers' compensation cost is $499,847, which is an approximately 1.15% increase from the prior year's cost. It is also below the budgeted insurance expense for the remainder of FY14 Budget and will be taken into consideration when planning the 2015 Budget. 5. RECOMMENDATION a) Award contracts presented in the Marsh Renewal Proposal for the property, liability, and workers' compensation insurance for the period beginning June 1, 2014 and ending June 1, 2015. b) Extend Marsh Risk & Insurance Services contract for one year. a _ Kim Harris Michael D. Holley Human Resource Manager General Manager Attachment 1 MARSH Truckee Donner Public Utility District . . . � le le a o E - k 1\ 1 wu � a JSti 71 t Y 1 7' S4 1 l {1.aZ 2`i rJ �k 4 "' m; — Pt � yst tMat I ' It � g � .. t r,. �: . y �tt7 }f1 i � § i z r tw „ t o a tf 7t t f z 1 1 {t � raw• � ', { �� `� is9 il ,. ,�,.... , ; ; �. s� ', t � " � p �Cf w C't �w, o + j �.% a )8 Y kt u . 4 'z" �n.� , Iti 1 i t Attachment 1 TRUCKEE DONNER PUBLIC UTILITY DISTRICT PREMIUM SUMMARY JUNE 1, 2014 TO 2015 COVERAGE Expiring Program Renewal'Program 2013-2014 2014-2015 CarrierPremium: Carrier. Premium.,`,,;'.' Package - Atlantic Specialty Ins Co $ 142,654 Atlantic Specialty Ins Co $ 147,739 Property&Inland Marine (OneBeacon) $61,483 (OneBeacon) $64,318 General Liability $35,244 $35,695 Automobile $19,665 $21,391 Professional Liability $3,422 $3,436 $10M Excess Liability $21,965 $21,965 Terrorism (Fire Only) $875 $934 Excess Liability$10Mxs$10M AWACW �$ 22,200 AWAC $ W22,900 Workers' Comp � �The Ins Co of State of PA $ 168,860 The Ins Co ofState of PA $ 165,378 (AIG) - (AIG) Earthquake _ _ -Primary Landmark $ 50,251 Landmark $ 52,075 -Excess Essex $ 27,351 Essex $ 28,344 $Chubb$2Mil Crime � � � 4,537 Chubb$2Mil _ 41543 Pollution Steadfast$1 Mil 18,327 Steadfast$1 Mil $ L218,868 (3 Yr Pre-Paid 09-11) (3 Y_r Pre-Paid 11-14) Marsh Compensation _ Broker Fee $ 60,000 Broker Fee $ � 60,000 TOTALS $ 494,180 _.._.... -._ .._. _. .-_. _ .... .: ....... ...`., ..�.._. Premium Difference 1.15% NOTE: -Premiums include any applicable SL Taxes and Fees -Optional TRIA is not included these premiums except for Pollution. Page 1 of 1 Attachment 1 Truckee Donner Public Utility District Package Policy (General Liability, Auto, Property and Excess Liability) June 1, 2014 to 2015 PACKAGE COVERAGES Expiring Policy tt� er�e)nralfyOptron�� 7 6/112013-2014 u! , >n 6l„172014, 0;CS °h Carrier &A.M. Best Rating Atlantic Specialty Ins. Co. Atlantic Specialty Ins. Co. A XI A XI Property Coverage__ W11Sri ICU Building Limit $66,378 728 � $68,617,000 Business Personal Property Limit $2,924,675 $3,150,989 Business Income & Extra Expense $2,500,000 $2,500,000 Blanket Flood Limit $10,000,000 $10,000,000 Special Theft Limits $10,000 $10,000 Equipment Breakdown $100,000 $100,000 Miscellaneous Tools $522,315 $522,315 Computer Fraud $25,000 $25,000 Contractors Equipment- Scheduled $242,480 $242,480 Newly Acquired Locations- Buildings $2,000,000 1180 Days $2,000,000 1180 Days Newly Acquired Locations Personal Property $1,000,000 / 180 Days $1 000,000/ 180 Days Key Sublimits: Building Ordinance Combined Coverages- Per Bldg $500,000 $500,000 Pollutant Cleanup Removal - Per Bldg $100,000 $100,000 Debris Removal - Per Bldg $250,000 $250,000 Claims Expense $50,000 $50,000 Reward $50,000 $50,000 Contractual Penalties $50,000 $50,000 Automatic Seasonal Increase $100,000 $100,000 Brands and Labels $50,000 $50,000 Leasehold Interest $25,000 $25,000 Business Income or Extra Expense Utility $25,000 $25,000 Dependent Properties $100,000 $100,000 Lessor's Lease Cancellation $25,000 $25,000 Lessors Tenant Relocation Expense $25,000 $25,000 Temporary Reloaction of Property During Renovation $100,000 190 Days $100,000 190 Days or Remodeling Bucket Limits: $600,000 $500,000 - Personal Effects of Officers, Partners & Emps -Valuable Information Property -Accounts Receivable - Outdoor Property - Emergency Response Service Charge - Hardware and Media - Tenants Improvements and Betterments - Electronic Data Damage Fine Arts - Per Item $10,000 $10,000 Property in Transit $50,000 $50,000 Property at Other Locations $50,000 $50,000 ERISA Employee Theft/$0 Deductible $25,000 $25,000 Deductibles ._.. - Property and All Other $25,000 $25,000 - Flood $25,000 $25,000 Page 1 of 1 Attachment 1 dene6l Bo dily Injury and Property Damage Liability Limit $1,000,000 $1,000,000 (Coverage A) - Each Occurrence Personal &Advertising Injury Limit (Coverage B) $1,000,000 $1,000,000 General Aggregate Limit $5,000,000 $5,000,000 Products/Completed Operations Aggregate Limit $5,000,000 $5,000,000 Damage To Premises Rented To You Limit $1,000,000 $1,000,000 - Each Occurrence Failure to Supply Limit- Each Occurrence $1,000,000 $1,000,000 Medical Expense Limit Not Covered Not Covered Deductible (Coverage A& B) $25,000 $25,000 pLL - Each Occurrence or Offense Automobile Govera es_T Auto Liability-Anv Auto i - Liability Combined Single Limit $1,000,000 $1,000,000 - Med Pay Limit Excluded Excluded Hired Auto Physical Damage- Hired/NonOwned - Comprehensive Limit $100,000 $100,000 - Collision Limit $100,000 $100,000 Uninsured Motorist Bodily Iniury- Scheduled _Limit_ _ $1,000,000 '; $1,000,000 Deductible (including Hired Auto Physical Damage) $25,000 $25,000 Rental Reimbursement Excluded Excluded al Llabl� ' 00 l COVera eS ' 1�t � 1 _g.....,.__.....e».�.-..._. ._.,w... ..... ........�,�...w.._.....-...., v h .,t!ti,zt Y7\S�t�ir>u PrOfeSSlon Public Officials Errors & Omissions Limit- Each Wrongful Act $1,000,000 $1,000,000 ,Limit-Aggregate $5,000,000 $5,000,000 Public Officials Employment Practices Limit- Each Offense $1,000,000 $1,000,000 Limit-Aggregate $5,000000 $5,000,000 �. . _. —., Public Officials Employee Benefits Limit- Each Offense $1,000,000 $1,000,000 Limit_Aggregate _ $5,000,000 $5,000,000 Deductible (Each Coverage) $25,000 � $25,000 Retro Date (Each Coverage) 5/1/2002 5/1/2002 Excess Liabili Covera e T Each Claim $10,000,000 $10,000,000 Aggregate $10,000,000 $10,000,000 Data Breach i�t�i tt� ttiSt pJ tit �> it Y5 l _.....i._.�_.._....._..,_.� ,..ces_._._.......w........h—,.....-O,v-0—D .,._-b-I.: ..w.._.._.,.._.._,.._:W...,:.,,...,,.....,,._. „i ta.)V.�l$ },a6�i?i Any One Occurrence Limit with $1,000 Deductible $25,000 $25,000 Annual Aggregate $25,000 $25,000 Annual Aggregate Sublimits: Legal Services $25,000 $25,000 Public Relations $25,000 $25,000 Third Party Data Breach $25,000 $25,000 Data Extortion Ransom Coverage $25,000 $25,000 Data Extortion Reward Coverage, $25,000 $25,000 Deductible $1,000 $1,000 Annual Premium Optional TRIA Premium Rejected $2,840 Change in Premium from Expiring: 3.565% Page 1 of 1 Attachment 1 Truckee Donner Public Utility District Excess Liability June 1 , 2014 to 2015 COVERAGE Expiring ;}t i t z r S{ti\} yP+2°r rr U LSit 41 i47 z zcI .£t Yris t��tl@r`t lily{rt}r rt ytSl`�s+r+'I '41� +t,Y t4F� itlt +y+�tr�{lt x`�t}r��iQ t4§t'£'` lrt 6/1/2013-2014 , , l ,r '�, + �r�6Ir12 � =201 'i Carrier iii A.M. Best Rating Allied World Allied World AXV AXV Excess Liability Limits __. - Each Occurrence and Aggregate Limit $10,000,000 $10,000,000 Excess of $10,000,000 Excess of Excess of $10,000,000 Excess of Primary Underlying Limits Primary Underlying Limits .,t r i?" j5 t - '�t}t lr �t} ry tjltti btb.t&r1�ti5t}£S+Suit},:u it 1?'rt tt42 i}4 Y Annual Premium. _. " .. ,.. $22,200 Optional TRIA Premium Rejected $3,000 Change in Premium from Expiring; 3.15% Page 1 of 1 Attachment 1 Truckee Donner Public Utility District Workers' Compensation and Employers' Liability June 1, 2014 to 2015 COVERAGE Expiring 6/1/2013-6/1/2014 1 i 'jp1ZOhub1K« Carrier&A.M. Best Rating The Ins Co of the State w , The Ins Co of the State Y of Pennsylvania (AIG) of Pennsylvania(AIG) A XV A XV Policy Limits Workers' Compensation Statutory Statutory Employers Liability: -Each Accident $1,000,000 $1,000,000 -Policy Limit $1,000,000 $1,000,000 Each Employee $1,000,000 $1,000,000 Exposure and Rate: Estimated Payroll $6,667 521 $6,734,899 Composite Rate (Incl. Premium and Surcharges) 0.0253 0.0246 Premium:.... Estimated Annual Premium $160,606 $158,286 Taxes &Surcharges $8,254 $7 092 t4 }t s i7t#,Yu t-94 N,2 t v Total Estimated Premium 168 860 "'�� '��'� Change in Premium from Expiring: u -2.06% Change in Exposures from Expiring: 1 Change in Rate from Expiring: -3.04% Page 1 of 1 Attachment 1 Truckee Donner Public Utility District Difference In Conditions (Earthquake) - Primary and Excess June 1, 2014 to 2015 COVERAGE Expiring Policy 6/1/2013-2014 Carrier&A.M. Best Rating � � a) Landmark/b) Essex a) Landmark/b) Essex A+XIV/A XIV A+XIV/A XIV Limits a) Primary DIC Per Occurrence/Aggregate $5,000,000 $5,000,000 b) Excess DIC Per Occurrence/Aggregate $5,000,000 excess $5,000,000 excess $5,000,000 $5,000,000 Earthquake including EQ Sprinkler Leakage TOTAL LIMITS $10,000,000 $10,000,000 Sub Limit Extra Expense $1,000 000 $1,000,000 Business Income without Extra Expense Other $1,500,000 $1,500,000 than Rental Value _ Deductible u_..__n _ _. _—-. 5% subject to a 5% subject to a ._ w_ minimum of$25 000 minimum of$25,000 - - ._�....� - —__— e ___ _ Total Insurable_Valuesu $65,980,203 �$68,374,789 Combined Rate(per 100 of TIV) 0.12 0.12 Premium: Primary Premium $50,251.18 $52,074.72 Excess Premium $27,351.10 $28,343.88 Surplus Lines Taxes and Fee Included Included Total Premium Including Taxes and Fees $77,602 27 Minimum Earned Premium 25% 25% Optional TRIA Premium Rejected $77,925.00 Change in Premium from Expiring: 3.63% Change in Exposures from Expiring: 3.63% Change in Rate from Expiring: 0.00% Page 1 of 1 Attachment 1 Truckee Donner Public Utility District Crime June 1, 2014 to 2015 Recommended Recommended COVERAGE Expiring � ,1 R. e nket wt "a tt1l.�,,3OI �pt,2.t.tS t.t.0.€..,,.t....o.-1:�n 4n t t 3t`3€t�v.ai�r��,r.-....-,.'-:",..,5.1,t,�3.5S.l k,�a.€Rt J.f.t�gt,,...l r.S�a�nttt,r.6...�.nt.t tft_...rt i'.,1et..9;i}.w.r(2k t.�./'k0..a.t.,.,k.,l•.e„ti.,�O.}....:.r,,.��_t-<<:k..„+....'�\10 1,��t,0.1t rt4 n,n t.��r�,.:t;.:.�s4..fi..Y.:..t_tr..-.i��,c4 S,s t ....t.�.tk.t>�t..tt��..R t.�S r-.zr_.fi.,..#-r.i.. sfii.=r,(.i n s>t.l. ti t�t.�...,..v...,. ..,, ,....,t..; .,Y . .6 1/2012 201 0 .... r � sj Carrier& Federal (Chubb) Y Federal (Chubb) Hartford W W4 Hartford 4 Travelers--- Travelersv W A.M. Best Rating T A++XV A++XV A XV A XV A+XV A+XV Crime Coverage Employee Theft $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 Includes: Bonded Employees Yes Yes No Yes No Added w/stringent requirements on a case-by-case approval basis for an additional fee Faithful Performance No No No $1,000,000 No $1,000,000 - ...--- _ _ Deductible O bons 000 $5,0 p T _ $5 000 $10,000 $1Q000 $5 000 $5,000 Premiun $4,537 'i' 'rtr Change in Premium from Expirin 0 13% 14.77% 14.94% -35.89% �T9 _. _ m _ _ 13.87% Note: Faithful Performance: Covers any loss the organization or a member of the public suffers because the employee failed to perform his or her duty. In other words, the faithful performance of duty bond will protect the organization against losses caused either by dishonesty or by other types of employee malfeasance besides dishonesty. Named Insured: Coverage for the named insured, Truckee Donner Public Utility District, along with its subsidiaries. Subsidiaries include any not-for-profit entities of which Truckee Donner Public Utility District owns or controls, directly or through one or more subsidiaries the present right to elect or appoint more than fifty percent(50%) of such entity's directors,trustees or managers. Please note that coverage is not extended to any affiliate entities or any other entities not under the control of Truckee Donner Public Utility District, Page 1 of 1 Attachment 1 Truckee Donner Public Utility District Pollution Liability June 1, 2014 to 2017 (3-Year Policy) COVERAGE Current Policy nir Polio l� � t: t�'t}':ss�j"°? srt>ti�"•;rA?'sy4?�,RsY�'``,r'yv}t{u{�yx.I, 6l1/2011-2014 f� 3 Year PrepaidPolicy ( p Term 7 f}Yjs,U' siZ{jifulv; ''SYi�tl Carrier & A.M. Best Rating � � _ � Steadfast Ins. Co. Steadfast Ins. Co. A+ XV A+ XV a. _.___ _�__._ _..._ . ,, __.... .._..�__- -__ . . _-�� Limits of Liability: Each Pollution Event $1 ,000,000 $1 ,000,000 Aggregate Policy Limit $1 ,000,000 $1 ,000,000 Deductible Each Pollution Event $25,000 $25,000 Insuring Agreements A - Cleanup Costs - Yes Yes Existing Pollution Event B - Bodily Injury or Property Damage - Yes Yes Existing Pollution Event C - Cleanup Costs - Yes Yes New Pollution Event D - Bodily Injury or Property Damage - Yes Yes New Pollution Event Premium — lM $17,750.00 $18,283.00 _ Surplus Lines Taxes and Fees $576.88 $585.06 Total 3 Y m g r Premiu includin Stf Taxes and Fees $18v326.88 4t , $s \ is{s3tC1 s< , Optional TRIA Included 1% Included in Premium Change in Premium from Expiring' - 3 00% Covered Locations: 1) 11570 Donner Pass Road and associated substation, Truckee, CA 2) 15670 Donner Pass Road, Truckee, CA (SOLD) 3) 14530 Glenshire Drive, Truckee, CA/ Maintenance Shop (SOLD) 4) Truckee substation, SE corner of Keiser Avenue and Jibboom Street, Truckee, CA 5) Donner Lake substation, south side of Donner Lake Road between Interstate 80 and Cedar Point Drive, Truckee, CA 6) Tahoe Donner substation, east of Ski Slope Way between Bermgarten and Northwoods Boulevards, Truckee, CA 7) Martis Valley substation, north of Riverview Drive and south of Truckee River, Truckee, CA Page 1 of 1 Attachment 1 Truckee Donner Public Utility District June 1, 2014 to 2015 Subjectivities at Binding COVERAGE � C+ {}i'lt i�j>4Y}%h 1E'i� j�li st s s"ta}ti`itll tbsea GCIT 11 IG�7 ��q i4SSY Ext sll4y Y�i� t}j �,r,Yr j`it4 ,tt„>�..xi'7,4t ,3�,. 11t;.37:r4i3 tsstx,; S'3s.3.Karst `slot.,,s !,;,4Y`vt�� t;].63s*z2 Package; GL,Auto, Excess 1. Completed and signed TRIA form. Liability, Professional & Property Excess Liability 1. Receipt of complete copies of underlying policy(ies)when available. 2. Receipt of completed and signed TRIA Disclosure Statement at binding. 3. Receipt of underlying binder(s) at binding. Work Comp 1. Favorable Loss Control Survey and prompt compliance with recommendations. DIC � None for binding. Refer to carrier quote for Special Conditions. Crime .___ ._.___ __ ,r _ If Travelers quote chosen, subject to acceptance of— _—___ competitor's application form. Pollution Liability 1. Review and confirm addresses of property locations. 2. Provide past operations descriptions for locations 2 &3: Loc 2-15670 Donner Pass Rd. (Sold Location), and Loc 3- 14530 Glenshire Dr, (Maintenance Shop). 3. Copies of any Environmental Reports,Assessments or NOVs/Fines or Violations. If there are none,written confirmation is acceptable. Attachment 1 Truckee Donner Public Utility District Insurance Proposal June 1, 2014 to 2015 Please Note: A.M. Best ratings of the insurers are provided for information purposes only and are based upon information with respect to such ratings available to Marsh as of the date of this Proposal. Marsh will not, and will have no responsibility or obligation to, inform you or any other persons)relying upon this information of any changes in such Best ratings occurring after such date. Marsh will have no liability with respect to the solvency or future ability to pay claims of any of the insurance companies which have issued the insurance policies referenced herein. This document and any recommendations, analysis, or advice provided by Marsh (collectively, the"Marsh Analysis") are intended solely for the entity identified as the recipient herein ("you").This document contains proprietary, confidential information of Marsh and may not be shared with any third party, including other insurance producers,without Marsh's prior written consent.Any statements concerning actuarial,tax,accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting,tax, or legal advice,for which you should consult your own professional advisors. "Any modeling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change.The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Except as may be set forth in an agreement between you and Marsh, Marsh shall have no obligation to update the Marsh Analysis and shall have no liability to you or any other party with regard to the Marsh Analysis or to any services provided by a third party to you or Marsh. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or reinsurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. Page 1 of 1