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Home My WebLink About17 - Consideration of the Award of a Contract Ins ACTION ITEM #17Worker's Compensation CoverageContract for Property, Liability, and Consideration of the Award of a Worker's Compensation CoverageContract for Property, Liability, and Consideration of the Award of a 2019June 5, Consideration of compensation coverage from Association of California Water AgenciesStaff obtained one additional quote for liability, property, and worker’s •quote to InterWestnly (JPRIMA) provided a oJoint Powers Risk Management Authority •InterWest approached 35 carriers to obtain renewal coverage•Current coverage ends June 12, 2019•coverage extension for liability and property coverageAt the May board meeting, the Board directed staff to obtain a •BACKGROUND / HISTORY Insurance Coveragefor Contract Consideration of Insurance Coveragefor Contract NEW INFORMATION a quote for $247,417 for a 12 month renewal period) provided Authority’s (ACWA) Joint Powers Insurance Authority (JPIAAssociation of California Water Agencies Joint Powers Insurance •coverage and was for $501,235 for a 10 month renewal periodThe secondary offer of coverage from JPRIMA was for decreased •month renewal periodThe primary offer of coverage from JPRIMA was for $669,969 for a 10 •Consideration of Contract for Insurance CoverageConsideration of Contract for Insurance Coverage NEW INFORMATION to $247,417decreases from $297,665 Coverage expense •shown hereCoverage changes are •$297,665ending Jul 1 was liability for coverage The total for property and •$247,417.38 Total Premium$297,665 Total Premium N/AN/A Increase EQ $10M and $5M FloodN/AN/A Increase Pollution to $2MM$6,864.38Membership Fee for ACWAN/A Membership FeeIncludedAccidental EventsPollution for Sudden & $7,413 2020 Pollution Premium $21,987 -2017N/AN/A$22,500 Excess w/Endurance Risk $10MN/AN/A$28,500 Excess w/Travelers $10MN/AN/A$38,155 Excess w/AWAC $4MIncludedAuto$31,334 AutoIncludedPublic Entity$13,990 Public Entity & EPLI$164,455 General Liability$33,717 General LiabilityIncludedCyber$12,603 CyberIncluded Crime$4,776 Crime W/ ChubbIncludedFlood Property Included in FloodIncludedEarthquake$51,600 Earthquake w/Landmark American w/feesIncludedProperty Included in Equipment Breakdown$75,098 Property $53,077 Property 2020-ACWA 2019-Premium Breakdown 2019-Expiring, 2018–Premium Breakdown Consideration of Contract for Insurance CoverageConsideration of Contract for Insurance Coverage NEW INFORMATION ACWA / JPIA presentation•ACWA / JPIA worker’s compensation insurance is $295,595•$308,640Renewal of worker’s compensation insurance with SDRMA is •Authority (SDRMA)Special District Risk Management with The District currently has worker’s compensation coverage •Consideration of Contract for Insurance CoverageConsideration of Contract for Insurance Coverage ACWA JPIA Director of Insurance ServicesKaren L. Thesing, ARM2019June 5, Truckee Donner Public Utility District Membership Snapshot 2019June 1, As of 320240160800 326, General Liability280, Property194WComp, 267, BenefitsEmployee Summary of Programs Property ProgramWorkers’ Compensation ProgramLiability Program General Liability Program Public Officials Errors and Omissions•Contractual Liability•Employment Practices Liability•Drone Liability•Inverse Condemnation•Auto Liability•Broad scope of coverageCommunication--$50k annual aggregate •Response Services--$250k annual aggregate •Crisis Management$20 million for subsidence•60 million per occurrence limits $Pooled SIR $5 million Workers’ Compensation$2 million per occurrence-Part 2. Employer’s Liability Part 1. Statutory Limits = limitlessPooled SIR $2 million Property Program$100M Business Interruption (if scheduled)Aggregate Limits$25M All Other Zones$10M Zones A & BFlood◊$2.5M Earthquake◊$3MContingent Business Interruption◊$25MOff Premise Service Interruption ◊Boiler & Machinery◊Mobile Equipment◊Fixed Equipment◊Buildings/Personal Property◊$500 million limits per member, per occurrence•Pooled SIR $100,000 Cyber Insurance: What & Why?drinking water, & other critical infrastructure operations to sophisticated computer systems that operate pumps, disinfect Electronic equipment includes anything from laptops, thumb drives,  Cyber Insurance: What & Why?equipment in conducting operations Designed to protect from digital risks from use of electronic Other sensitive data elements•Employees' birth dates and social security numbers•Customers' credit card numbers •Customer names and addresses •:Data in scope includeemployees or customers) on a computer network. Cyber risks also include data that belongs to others (such as  The Why …External Threats VendorsPublic Entity High Risk ProfileSocial EngineeringCyber ExtortionMalwareHackersInternal Threats Rogue EmployeeLack of education and awarenessinformation (dumpsters)Improper disposal of personal Employee IgnoranceLost mobile devicesTimeliness of Security/PatchesCareless Employee Cyber Policy Specifics, 2018 Penalties for regulatory defense & penalties•Cyber PR consultants••Cyber extortion•Website media content liability•$2M limit per occurrence and aggregateProperty Members 19 - Policy Specifics, 2018$25K Cyber criminal reward$50K Cyber funds transfer fraud$50KfraudTelecommunications$250K Party BI resulting from system failure-First$1Mprovidesif Beazley –Privacy notification costs limits-Sub–Property Members 19 - Optional coverage case by case need-Special Events Liability Coverage Excess Crime Third Party Bodily Injury & Property Damage–Dam Liability Difference in Conditions (DIC) Earthquake Floodbeyond asset, flumes, damsBusiness Income, underground piping 1000+ feet –Expand Property Coverage  Our Training•Employee Handbook Reviews•Employment Practices Hotline•Human ResourcesHouse Claims Staff-InTransfer of Risk & Insurance RequirementsRisk Control TrainingSpecialized Public Agency Risk Management ExpertiseServices Questions? NEW INFORMATION$871,078Total Estimated Annual Premium$2,205Crime Coverage$308,640Worker’s Compensation Coverage$312,204$154,289Liability CoverageEstimated Annual PremiumProgram$526,660Total Estimated Annual Premium$1,000Excess Crime Coverage$295,595Worker’s Compensation Coverage$72,799$157,266Liability CoverageEstimated Annual PremiumProgram CoverageSDRMA InterWest and •CoverageACWA / JPIA •Consideration of Contract for Insurance CoverageConsideration of Contract for Insurance Coverage FISCAL IMPACT contractThe approved FY19 budget does include funds for this insurance •Consideration of Contract for Insurance CoverageConsideration of Contract for Insurance Coverage RECOMMENDATION liabiitiesself insure workers’ compensation for a certificate of consent to of California Industrial Relations, State 18 Authorizing Application to the Director of -Approve Resolution 2019•Powers Insurance AuthorityPrograms of the Association of California Water Agencies/Joint 17 consenting to enter the Joint Protection -Approve Resolution 2019•yearsobtain appropriate insurance coverage for a period of up to three necessary memberships with ACWA and ACWA / JPIA in order to that is the most advantageous to the District, including obtaining any Authorize the General Manager to execute a contract with the carrier •Consideration of Contract for Insurance CoverageConsideration of Contract for Insurance Coverage