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HomeMy WebLinkAboutInsurance Proposal SummaryRenewal Proposal June 1, 2011 to 2012 } Marsh Risk & Insurance Services 345 California Street, Suite 1300 San Francisco, CA 94104 CA Insurance License #0437153 a www.marsh.com TRUCKEE DONNER PUBLIC UTILITY DISTRICT PREMIUM SUMMARY AND OPTIONS JUNE 1, 2011 TO 2012 BLUE = change from prior year COVERAGE Expiring Program Renewal Program Renewal Program 2010-2011 Options Received [RECOMMENDED] 2011-2012 2011-2012 Carrier Premium Carrier Premium Carrier Premium Package (GL/AL/PROP/ OneBeacon 171,002.00 One Beacon / $1 K Ded 184,950.00 One Beacon / $25K Ded 148,603.00 E&O/CRIME) One Beacon / $25K Ded 148,603.00 Excess Liability AWAC 20,000.00 AWAC 20,000.00 AWAC 20,000.00 Workers' Comp U.S. Fire 234,346.00 U.S. Fire 224,571.00 U.S. Fire* 224,571.00 (Annualized) SCIF Pending Midlands Pending Earthquake - Primary Landmark 40,916.94 Landmark 46,688.62 Landmark 46,688.62 -Excess Essex 23,489.38 Essex 25,462.48 Essex 25,462.48 Crime Chubb $2MiI / $5K 4,537.00 Chubb $2MiI / $5K Ded 4,537.00 Chubb $2MiI / $5K Ded 4,537.00 Ded Chubb $2MiI / $25K Ded 3,973.00 Chubb $3Mil / $25K Ded 4,966.00 Travelers $2MiI / $25K Ded 4,000.00 Hartford $2MiI / $10K Ded 8,555.00 Hartford $1 Mil / $5K Ded 6,880.00 Hartford $2MiI / $25K Ded 7,954.00 Pollution Steadfast $1 Mil 7,349.34 Steadfast $1 Mil /$50K Ded 7,744.00 Steadfast $1 Mil / 18,143.61 /$50K Ded Steadfast $1 Mil /$25K Ded 8,085.40 $25K Ded (3 Yr Term) Steadfast $1 Mil /$50K Ded 17,346.31 (3 Yr Term) Steadfast $1 Mil /$25K Ded 18,143.61 3 Yr Term Marsh Compensation Broker Fee 50,000.00 Broker Fee 65,000.00 Broker Fee 65,000.00 TOTALS 2010-2011 551,640.65 2011-2012 553,005.71 % Change from prior year 0.2% NOTE: WC Commission WC Commission included in premium 20,516.00 included in broker fee 15,000.00 - Premiums include any applicable SL Taxes and Fees - Optional TRIA is not included these premiums *` Currently being reviewed Page 2 of 10 Truckee Donner Public Utility District Package Policy (General Liability, Auto, Property and Excess Liability) June 1, 2011 to 2012 BLUE = change from prior year Expiring Renewal Option 1 Renewal Option 2 6/1/2010-2011 6/1/2011-2012 1 6/1/2011-2012 arner & A.M. hest Kating unetseacon ins. uo. unebeacon ins. uo. unetseacon ins. u AXII * AXII * AXII operty Coverage: i gilding Limit $47,829,666 $61,797,245 $61,797,245 :rsonal Property Limit $3,291,848 $2,798,054 $2,798,054 asiness Income & Extra Expense $2,500,000 Same as Expiring Same as Expiring anket Flood Limit $10,000,000 " )ecial Theft Limits $10,000 " luipment Breakdown $100,000 " iscellaneous Tools $495,223 $505,751 $505,751 :)mputer Fraud $25,000 $25,000 $25,000 Dntractors Equipment - Scheduled $791,466 $235,480 $235,480 3wly Acquired Locations - Buildings $2,000,000 / 180 Days Same as Expiring Same as Expiring =wly Acquired Locations - Personal Property $1,000,000 / 180 Days " ey Sublimits: Autant Cleanup Removal $100,000 " 3bris Removal $250,000 " aims Expense $50,000 " award $50,000 " Dntractual Penalties $50,000 " itomatic Seasonal Increase $100,000 " ands and Labels $50,000 " ,asehold Interest $25,000 " asiness Income or Extra Expense Utility $25,000 " Dpendent Properties $100,000 " ;ssor's Lease Cancellation $25,000 " :ssors Tenant Relocation Expense $25,000 " mited Coverage for Fungus, Rot and Bacteria - $15,000 " Igregate ectric Data Damage or Destruction $50,000 " )ft Costs $25,000 " ;mporary Reloaction of Property During Renovation $100,000 / 90 Days " Remodeling icket Limits: $500,000 " Personal Effects Valuable Information Property Accounts Receivable Outdoor Property Hardware and Media Tenants Improvements and Betterments Electric Data Damage ne Arts - Per Item $10,000 " •operty in Transit $50,000 " ternational Air Shipments $25,000 " operty at Other Locations $50,000 " -ime Limits: $25,000 " Money & Securities Employee Theft Money Orders and Counterfeit Paper Forgery and Alteration Inside Premises - Robberty or Safe Burglary or - ERISA Employee Theft ductibles Property and All Other Flood $1,000 $25,000 $1,000 $25,000 $25,000 $25,000 neral Liability Coverages: h Occurrence Limit -Bodily Inujury and Property $1,000,000 Same As Expiring Same As Expiring mage Liability (Coverage A) -sonal & Advertising Injury Limit (Coverage B) $1,000,000 " neral Aggregate Limit $5,000,000 " )ducts/Completed Operations Aggregate Limit $5,000,000 " mage To Premises Rented To You Limit $1,000,000 " lure to Supply $1,000,000 " dical Expense Limit Excluded ductible $1,000 for A&B $25,000 for A&B Page 3 of 10 Truckee Donner Public Utility District Package Policy (General Liability, Auto, Property and Excess Liability) June 1, 2011 to 2012 BLUE = change from prior vear Expiring Renewal Option 1 Renewal Option 2 6/1 /2010-2011 6/1 /2011-2012 6/1 /2011-2012 Carrier & A.M. Best Rating OneBeacon Ins. Co. OneBeacon Ins. Co. OneBeacon Ins. Co. AXII * AXII * AXII Automobile Coverages: Auto Liability $1,000,000 Same As Expiring Same As Expiring - Limit Hired Auto Liability " Comprehensive $100,000 " Collision $100,000 " Deductible $1,000 / $1,000 $25,000 / $25,000 Uninsured Motorist BI Same As Expiring - Limit $1,000,000 " Rental Reimbursement $450 Max / 30 Days " Professional Liability Coverages: Errors & Omissions $1,000,000 Same As Expiring Same As Expiring Each Wrongful Act Aggregate $5,000,000 " Deductible $10,000 $25,000 Employment Practices $1,000,000 Same As Expiring Each Offense Aggregate $5,000,000 " Deductible $10,000 $25,000 Employee Benefits $1,000,000 Same As Expiring Each Offense Aggregate $5,000,000 " Deductible $1,000 " Excess Liability Coverage: Aggregate Limit $10,000,000 Same As Expiring Same As Expiring Each Claim $10,000,000 " Annual Premium $171,002.00 $184,950.00 $148,603.00 Optional TRIA Premium Rejected $2,183.00 $1,711.00 Change in Premium from Expiring: 7.54% -15.07% Marsh Commission N/A N/A N/A MARKETING SUMMARY: OneBeacon Insurance Company Quoted Glatfelters Declined Midlands Declined Travelers Declined Philadelphia Declined ACE Declined Amwins Declined Safety National Declined Chartis Declined Genesis Declined Ironshore Declined CV Starr Declined Page 4 of 10 Truckee Donner Public Utility District Excess Liability June 1, 2011 to 2012 Carrier & A.M. Best Rating Excess Liability Limits: Each Occurrence and Aggregate Limit Excess of Underlvina Limits Annual Premium Optional TRIA Premium Change in Premium from Marsh Commission Expiring Renewal /2010-2011 6/1 /2011-2012 Ailed World Allied World AXV * AXV * $10,000,000 Same As Expiring $20,000.00 $20,000.00 Rejected $800.00 0.00% N/A N/A Page 5 of 10 A.M. Best Rating Policy Limits Workers' Compensation Employers Liability: Each Accident Policy Limit - Each EmDlovee Truckee Donner Public Utility District Workers' Compensation and Employers' Liability June 1, 2011 to 2012 Expiring Renewal Option 1 Renewal Option 2 Renewal Option 3 7/1/2010-6/1/2011 1 6/1/2011-2 1 6/112011-2012 1 6/1/2011-2012 U.S. Fire Ins. Co. U.S. Fire Ins. Co. SCIF Midlands AXIII * AXIII (No Rating) AVIII Statutory Same as Expirig $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1.000.000 Exposure and Rate: Estimated Payroll $ 5,845,053.33 $ 5,649,923.00 Composite Rate (Incl. Premium and Surcharges) 0.0368 0.0397 Premium: 11 Month Premium $214,817 ** Annualized Premium $234,346.00 $224,571.00 TRIA Premium Included, not rejectable Included, not rejectable Change in Premium from Expiring: -4.35% Change in Exposures from Expiring: -3.45% Change in Rate from Expiring: 7.54% Pending Pending (Marsh Commission (Included in Premium) 10.00% 10.00% 1 U.S. Fire Ins. Co. ** Quoted - Still being reviewed State Compensation Pending Midlands Management Pending Zenith Declined - Could not compete with renewal pricing Chartis Declined - Does not meet minimum premium Page 6 of 10 Truckee Donner Public Utility District Difference In Conditions - Primary and Excess June 1, 2011 to 2012 Expiring Renewal 1/2010-2011 6/1/2011-2C Carrier & A.M. Best Rating Landmark AXII and Landmark AXII and Essex AXIII * Essex AXIII Total Insurable Values $53,698,313 $61,272,101 DIC Primary Limits $5,000,000 $5,000,000 DIC Excess Limits $5,000,000 $5,000,000 Deductible 5% subject to a 5% subject to a minimum of $25,000 minimum of $25,000 Premium: Primary Premium $39,629.00 $45,219.00 Excess Premium $22,750.00 $24,661.00 Surplus Lines Taxes and Fee $1,287.94 $2,271.10 Total Premium Including Taxes and Fees $63,666.94 $72,151.10 Minimum Earned Premium 25% 25% Optional TRIA Premium Rejected $49,229.60 Change in Premium from Expiring: 12.36% Change in Exposures from Expiring: 12.36% Change in Rate from Expiring: 0.00% Marsh Commission N/A Page 7 of 10 Truckee Donner Public Utility District Crime June 1, 2011 to 2012 BLUE = change from prior year Expiring Renewal Option 1 Renewal Option 2 Renewal Option 3 Renewal Option 4 Renewal Option 5 Renewal Option 6 Renewal Option 7 6/1/2010-2011 6/1/2011-2012 6/1/2011-2012 6/1/2011-2012 6/112011-2012 6/1/2011-2012 6/112011-2012 6/1/2011-2012 COVERAGE Carrier & Federal Ins. Co. Federal Ins. Co. Federal Ins. Co. Federal Ins. Co. Travelers Hartford Hartford Hartford A.M. Best Rating A++XV * A++XV * A++XV * A++XV * (A+XV) * AXV * AXV * AXV * Crime Coverage Section Employee Theft $2,000,000 $2,000,000 $2,000,000 $3,000,000 $2,000,000 $2,000,000 $1,000,000 $2,000,000 Premises $2,000,000 $2,000,000 $2,000,000 $3,000,000 $2,000,000 $2,000,000 $1,000,000 $2,000,000 Transit $2,000,000 $2,000,000 $2,000,000 $3,000,000 $2,000,000 $2,000,000 $1,000,000 $2,000,000 Forgery $2,000,000 $2,000,000 $2,000,000 $3,000,000 $2,000,000 $2,000,000 $1,000,000 $2,000,000 Computer Fraud $2,000,000 $2,000,000 $2,000,000 $3,000,000 $2,000,000 $2,000,000 $1,000,000 $2,000,000 Funds Transfer Fraud $2,000,000 $2,000,000 $2,000,000 $3,000,000 $2,000,000 $2,000,000 $1,000,000 $2,000,000 Money Orders & Counterfeit $2,000,000 $2,000,000 $2,000,000 $3,000,000 $2,000,000 $2,000,000 $1,000,000 $2,000,000 Fraud Credit Card Fraud $2,000,000 $2,000,000 $2,000,000 $3,000,000 $2,000,000 $2,000,000 $1,000,000 $2,000,000 Client $2,000,000 $2,000,000 $2,000,000 $3,000,000 Expense $25,000 $25,000 $25,000 $25,000 $25,000 / $0 Ded $25,000 / $0 Ded $25,000 / $0 Ded Deductible Options $5,000 $5,000 $25,000 $25,000 $25,000 $10,000 $5,000 $25,000 Notes Flat Renewal Rate Guarantee Avail Rate Guarantee Avail Rate Guarantee Avail Premium $4,537 $4,537 $3,973 $4,966 $4,000 $8,555 $6,880 $7,954 Change in Premium from 0.00% -14.20% 8.64% -13.43% 46.97% 34.06% 42.96% Expiring: N/A N/A N/A N/A N/A N/A N/A N/A Marsh Commission Page 8 of 10 Truckee Donner Public Utility District Pollution Liability June 1, 2011 to 2012 BLUE = change from prior year Expiring Renewal Option 1 Renewal Option 2 Renewal Option 3 Renewal Option 4 6/1/2010-2011 6/1/2011-2012 6/1/2011-2012 6/1/2011-2014 6/1/2011-2014 Carrier & A.M. Best Rating Limits of Liability: Each Pollution Event Aggregate Policy Limit Deductible Each Pollution Event Insuring Agreements A - Cleanup Costs - Existing Pollution Event B - Bodily Injury or Property Damage - Existing Pollution Event C - Cleanup Costs - New Pollution Event D - Bodily Injury or Property Damage - New Pollution Event Premium Surplus Lines Taxes and Fees Total Premium including Taxes and Fees Optional TRIA Premium Change in Premium from Expiring: Marsh Commission Steadfast Ins. Co. Steadfast Ins. Co. Steadfast Ins. Co A+XV* A+XV* A+XV* $1,000,000 $1,000,000 $1,000,00 $1,000,000 $1,000,000 $1,000,000 Yes Yes Yes Yes $7,118.00 231.34 $ $7,349.34 $ Rejected $ N/A Yes Yes Yes Yes $7,500.24 243.76 $ 7,744.00 $ 75.76 $ 5.10% N/A Yes Yes Yes Yes $7,830.90 254.50 $ 8,085.40 $ 79.10 $ 9.10% N Steadfast Ins. Co. Steadfast Ins. Co. A+XV* A+XV* $1,000,000 $1,000,000 $1,000,000 $1,000,000 $50,000 $25,000 Yes Yes Yes Yes Yes Yes Yes Yes $16,800.30 $17,572.50 546.01 $ 571.11 17,346.31 $ 18,143.61 169.70 $ 177.50 57.63% 59.49% N/A N/A Page 9 of 10 Truckee Donner Public Utility District Insurance Proposal June 1, 2011 to 2012 Please Note: * A. M. Best ratings of these 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 person(s) 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 10 of 10