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Home My WebLink About11 Property and Liability Insurance Agenda Item # 11 PLIL&C Utility District r ACTION To: Board of Directors From: Mary Chapman Date: May 06, 2009 Subject: Consideration of the Award of a Contract for Property and Liability Insurance 1. WHY THIS MATTER IS BEFORE THE BOARD The District's property and liability insurance covered 6/1/08 through 6/1/09. It is now time to renew the insurance for the period beginning 6/1/09 through 6/1/10. 2. HISTORY For the last several years we have been using Marsh Risk & Insurance Services to arrange for our insurance renewals. Keith Grand is the client executive that oversees this process for the District. Mr. Grand will be at the meeting to make the renewal presentation. 3. NEW INFORMATION Attached is the Renewal Insurance Program proposed by Marsh. You will want to focus on the following sections: • Section 1 contains the Premium Summary comparing our current policy premiums to Marsh's recommendations for FY09-FY10. • Section 2 is the actual proposal showing the recommended renewal carriers and the other carriers that provided quotes. • Section 3 shows the A.M. Best Ratings of all of the insurance companies that Marsh solicited. • Section 4, A through R are copies of each of the proposals. Presentation of all of the proposed quotes is required disclosure information. • Section 5 contains correspondence from insurers who declined to quote for various reasons and is also required disclosure information. • Section 6 contains information about Marsh and Keith Grand in particular. 4. FISCAL IMPACT The renewal premiums as presented total $326,247.52. There is $355,084 included in the FY09 budget to cover renewal expenses. 5. RECOMMENDATION For the Board to review and comment on the insurance renewal package and approve the renewal as discussed. AM Mary Cha6r"nO Michael D. Holley Administrative Services Manager General Manager Truckee Donner Public Utility District June 1, 2009 to June 1 , 2010 Insurance Coverage Program TABLE OF CONTENTS Recommended Program Premium Summary R2 All Quotations Premium Summary 03 Marketing Overview & Insurance Company Rating Information ® Quotations ❖ Property Quotations A) ACE American — Incumbent B) Travelers C) OneBeacon f ❖ Difference In Conditions - $5,000,000 Primary Earthquake D) Landmark American — Incumbent D) Landmark American — Including Trailers & Vehicles E) Lloyds E) Lloyds — Including Trailers & Vehicles ❖ Difference In Conditions - $5,000,000 Excess Earthquake F) Essex — Incumbent F) Essex — Including Trailers & Vehicles G) Lloyds/Axis G) Lloyds/Axis — Including Trailers & Vehicles ❖ Pollution Legal Liability H) Steadfast (Zurich) — Incumbent i IMPORTANT: This proposal is an outline of the coverages proposed by the insuregs), based on information provided by Truckee Donner Public Utility District. It does not include all the terms,coverages,exclusions,limitations,conditions of the actual contract language. Please consult the actual policy for those details. Truckee Donner Public Utility District June 1 , 2009 to June 1, 2010 Insurance Coverage Program TABLE OF CONTENTS ❖ Commercial Crime/Employee Dishonesty 1) Federal Insurance Company (Chubb) — Incumbent J) Great American (3 Options) ❖ General Liability (Incl. E&O, EPL, EBL) K) Travelers — Incumbent L) OneBeacon (See Tab C) ❖ Automobile Liability & Physical Damage M) Travelers — Incumbent (See Tab K) N) One Beacon — (See Tab C) ❖ Umbrella Liability & Excess Liability O) Travelers — Incumbent (See Tab K) — Primary Umbrella P) One Beacon (See Tab C) — Primary Umbrella P) Arch Insurance — Excess Liability P) Allied World - Excess Liability ❖ Public Officials Bond Q)Treasurer — Mary Chapman n5 Declinations ® Forms - Transparency and Authorization To Bind IMPORTANT: This proposal is an outline of the coverages proposed by the insurer(s), based on information provided by Truckee Donner Public Utility District. It does not include all the terms,coverages,exclusions, limitations,conditions of the actual contract language.Please consult the actual policy for those details. RECOMMENDED PROGRAM PREMIUM SUMMARY TDPUD JUNE 1, 2009 TO JUNE 11 2010 INSURANCE PROGRAM PREMIUM COVERAGE 2008-2009 2009-2010 EXPIRING PROGRAM RECOMMENDED PROGRAM CARRIER PREMIUM W/O CARRIER PREMIUM W/O TERRORISM TERRORISM Property Incl. Flood and B&M Ace American $77,341 OneBeacon $68,102 General Liability including Travelers $62,893 OneBeacon $38,685 Employee Benefits Liability Public Entity Management Travelers $12,761 OneBeacon $3,665 D&O/EPLI Automobile Liability&Automobile Travelers $34,585 OneBeacon $34,091 Physical Damage Umbrella Liability Travelers $43,263 OneBeacon & $30,453 AWAC $20,000 Difference In Conditions Landmark American & $40,239.38 Landmark American & $43,989.33 DIC -Earthquake Essex Ins. Co. $23,203.13 Essex Ins. Co. $25,290.13 Pollution Steadfast $6,994.97 Steadfast $7,347.56 Crime Federal $4,647.5 Federal 4,537 Workers' Compensation State Fund (Direct) Travelers & Employers LiabilitySee below Public Officials Bond Zurich $125 Zurich $87.50 Marsh Brokerage Fee Marsh $45,000 Marsh $50,000 Pro ram Premium $351,052.98 326,247.52 Page 1 of 2 TERRORISM SUMMARY (OPTIONAL) TDPUD JUNE 1, 2009 TO JUNE 11 2010 INSURANCE PROGRAM PREMIUM COVERAGE 2008-2009 2009-2010 EXPIRING OPTIONAL TERRORISM CHARGE CARRIER TERRORISM CARRIER TERRORISM f CHARGE CHARGE Property Incl. Flood and B&M Ace American Rejected OneBeacon $2,983 General Liability including Travelers Rejected OneBeacon Incl in above Employee Benefits Liability Public Entity Management Travelers Rejected OneBeacon Incl in above D&O/EPI- Automobile Liability&Automobile Travelers Rejected OneBeacon Incl in above Physical Damage Umbrella Liability Travelers Rejected OneBeacon & Incl in above AWAC $400 I Difference In Conditions Landmark American & Rejected Landmark American & Not Offered j DIC - Earthquake Essex Ins. Co. Essex Ins. Co. $6,322.53 Pollution Steadfast Rejected Steadfast $74.32 Crime Federal Included Federal Included, no charge Public Officials Bond Zurich Rejected Zurich Not offered Terrorism Premium $9,689.85 Page 2 of 2 TRUCKEE DONNER P�, SIC UTILITY DISTRICT RENEWAL QUOTATIONS 2009-10 RENEWAL OPTIONS 2009-10 Policy/Feature Expiring 08-09 Incumbent Option I Option II Option III PropertylBollor&Machinery Insurer ACE American ACE American Travelers ..ti OnexBeacoit ' Total Insured Value values up 3.8% $47,624,087.00 $49,439,800.00 $49,439,800.00 $49,439,800.00 Flood Limit $10,000,000 $10,000,000 $10,000,000 $10,000,000 Business Incometinterru tion $1,000,000 $1,000,000 $1,000,000 $1,000,000 Extra Expense $1,500000 $1,500,000 $1,500,000 $1,500,000 Deductibles-All Other Perils $1,000 $1,000 $1,000 $1,000 Flood 2%,$25,000 min 2%,$25,000 min $25,000 $25,000 -Boiler&Machinery,except $10,000 $10,000 $10,000 $1,000 -Business Income/interruption 3 Times Plant ADV 3 Times Plant ADV 48 Hours 72 Hours -Extra Expense $1,000,00 $1,000.00 48 Hours 72 Hours Col nsurance 90% 90% 90% None Pr®rhium , $77,341,.00 $84,153:00- $79$939.00 $68,102.00' TRIA. Re'ected $5;049.00 $1,355.00 $2 98300 dotal"P,remlum ,34 L00 89;202.00 181,294.00<- 71,085.00 DIC(Earthquake)-Mimary$5,000,000 Insurer Landmark American LanBina American ;%4 Landmark American Lloyds Lloyds Total insured Value $47,572,117.00 $49,439,800.00 $52,823,776.00 $49,439,800.00 $52,823,776.00 Business Income/Interruption Incl. $1,000,000 $1,000,000 $1,000,000 $1,000,000 Extra Expense Not covered $1,500,000 $1,500,000 $1,500,000 $1,500,000 Limit $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 Deductible 5%,$25,000 min 5%,$25,000 min 5%,$25,000 min 5%,$25,000 min 5% $25,000 min Including Trailers&Vehicles ncluding Trailers&Vehicles Premium°iricLtax,'fee $4023938 $43;989.33 $47206.86 $41,559.03' $4424804 TRIq Re'ected Ekluded Excluded $12;377:71 . $13,184.0 T,otahPremrum. 0,239.38 43;989:33 7,206:86 < = 54,743.03 ; 57,432.0 DIC(Earthquake)-Excess$5,000,000 Insurer Essex E'sex Essex Lloyds/Axis(indication)___ Lloyds/Axis Total Insured Value $47,572,117.00 $49,439,800.003 $52,823,776.00 $49,439,800.00 $52,823,776.00 Business Income/interruption Incl. $1,000,000 $1,000,000 $1,000,000 $1,000,000 Extra Expense Not covered $1,500,000 $1,500,000 $1,500,000 $1,500,000 Limit $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 Deductible 5%,$25,000 min 5%,$25,000 min 5%,$25,000 min 5%,$25,000 min 5%,$25,000 min Including Trailers&Vehicles cluding Trailers&Vehicles Premium,'incl`tax`fee $23 20313 $25290.13 $27096.56 TRIA ` : `' ` "_': Re'ected" $6322:53 �$6;774,66 ota t ,remlgm, ,. ,203.1 1 1 33"871:22 Pollution Legai Liability Insurer Steadfast Zurich +SteadFast Zurich „ XL Ins Limit $1,000,000/$1,000,000 $1,000,000/$1,000,000 INDICATION Deductible $25,000.00 $25,000.00 ONLY Retro Date $38 108.00 $38,108.00 r.=Pr&niUrK(Inc[tax fees ,$6;994 97 $7,347.56 $10,000-$20,200 TRIA,.,,�. Re acted $74.32 Dnk otal, .remium 68,94.97 7421.8 10,000-= 0,000 i Pa—1 of d TRUCKEE DONNER P, LIC UTILITY DISTRICT RENEWAL QUOTATIONS 2009-10 RENEWAL OPTIONS 2009-10 Policy/Feature Expiring 09-09 Incumbent Option I Option II Option III Crime Insurer Federal Ins. Chubb `Federal°Chubb` Great American Great American Great American Limit $2,000,000 $2,000,000 $2,000,000 $3,000,000 $5,000,000 Deductible $5,000 $5,000 $10,000 $25,000 $50,000 Premium $4,647.50 $4 537:00 $2 06&00: $2,655.00; $3,466.00 TRIA Included N/A N/A < N/ N/ ota; remi um. ,547.50 537.00 6 . 0 r ; 2,655: 3,466 0 General Liability Insurer Travelers Travelers One'Beacon Limit $1,000,000/$6,000,000 $1,000,0006,000,000 $1,000,00035,000,000 Medical Expense $5,000 $5,000 No Coverage Premises Damage $500,000 $500,000 $1,000,000 Failure to Supply $1,000,000 $1,000,000 $1,000,000 Non-Owned Watercraft Less than 75 Feet Less than 75 Feet Unlimited Owned Watercraft Less than 25 Feet Less than 25 Feet 100 Horsepower or less Sewer Back U (Resulting from Negligence) Excluded Excluded Policy Limit Excl Flood Deductible $1,000.00 $1,000.00 $1,000.00 Premium" $62,694.00 $60 930.00 $38'619.00 TRIA. Rejected $582,00 lncl.in Pro .TRIA Total Premium, 62694.00 38,6 900 Management Liability E&O Insurer Travelers Travelers One`Beacom; Limit $5,000,000/$5 000,000 $5,000,000/$5,000,000 $1,000,000/$5,000,000 Deductible $10,000 $10,000 $10,000 Premium . $3214.00 $4,032.00 $1485.00 TRIA' Reacted $179.00 Incl.in Pro .TRIA Total- remium 14.00 4 2 11.00 $1,485.00, ErnplqyTent Practices Liability Insurer Travelers Travelers One Beacon Limit $5,000,000/$5,000,000 $10 000 0001$10 000 000 $1,000,000/$5,000,000 Deductible $10,000 $10,000 $10,000 Retro Date $37,377.00 $37,377.00 $37,377.00 Premium'; $9 547.00 - $14`037.00 $2,180.00` TKIA Reeirtetl $145.00 Incl.in Prop.TRIA ote rem um 9,547.00 14,182.00 80:00 Employee Benefits Liability Insurer Travelers Travelers One Beacon' Limit $1,000,000/$3,000,000 $1,000,000/$3,000,000 $1,000,000/$5,000,000 Deductible $1,000 $1 000 $10,000 Premium $199.00 Included in EPL Premium $66.00; TRIA Rejected Incl.in Pro .TRIA Total P,remlum"- 199.00 $0.00 66NO Paae 2 of 4 TRUCKEE DONNER P� SIC UTILITY DISTRICT RENEWAL QUOTATIONS 2009-10 RENEWAL OPTIONS 2009-10 Policy/Feature Ex irin 08-09 Incumbent Option I Option 11 Option III Automobile Liability&Physical Damage Insurer Travelers Travelers `,OneBeacon= Automobile Liability Limit $1,000,000 $1,000,000 $1,000,000 Medical Payments $5,000 $5,000 $5,000 Uninsured/Underinsu red $1,000,000 $1,000,000 $1,000,000 Hired Auto Physical Damage $100,000 $100,000 $100,000 Hired Auto Physical Damage Ded $1,000 $1,000 $1,000 Rental Reimbursement $450 per Da /30 Days $450 per Da /30 Days $450 per Da /30 days Accidential Inflation of Airbags $1,000 $1,000 Included-No Limit Personal Belonging in Stolen Vehicle $250 $250 No Coverage Automobile Physical Damage Actual Loss Sustained Actual Loss Sustained Actual Loss Sustained Automobile Physical Damage Ded $1,000 Comp&$1,000 Coll $1,000 Comp&$1,000 Coll $1,000 Comp&$1,000 Coll Premium; $34 585.00 $33953.00 $34,091:00; TRIA` .00T 34, N/ a 33953N.0! 34,091N.0!0 Umbrella Insurer Travelers Travelers 'One Beacon!. Limit $19,000,000 $19 000,000 $10 0,000 Failure to Supply Limit $4,000,000 $4,000,000 $4,000,000 Error&Omissions Liability Excluded Excluded Included Employment Practices Liability Excluded Excluded Included Employee Benefits Liability Excluded Excluded Included Premium $43263.00 $43 229.00 $30 453,00 TRIA ° Rejected "$240.0 Included in P TRIA T,o al;Premium 63.00 3,469.00 30;453:0 EXCESS E&O LIABILITY Insurer Travelers Travelers One?Beacon Limit $19 000 000 $19 000 000 Included in Umbrella Error&Omissions Liability Included Included Included In Umbrella Employment Practices Liability Excluded Excluded Included In Umbrella Employee Benefits Liability Included Included Included in Umbrella Deductible $10,000 $10 000 Included in Umbrella j Premium Included in Umbrella Included in Umbrella Included in Umbrella TRIA Rejected" � rickided it Umbrella Included in Umbrella Total°Premiym rinclu e' n Umbrella Jnclu, ed n Umbrell ncluded in'Umbrega Excess Liability Insurer N/A Arch Limit NIA $10,000 000 $10,000,000 Premium -incl tax,-fee N/A $20,000 $25 806 TRIA.. WA $40 $500 TotalPremium N/A $20,400.00 $26,306.25 Treasurer Bond Surety Fidelity&Deposit Fideli &.De osit; Limit $25,000 $25 000 Deductible $0 $0 Premium T125.00jr $8750 TRIA" WA N/A Total remium $125.001 $BT.501 Pace 3 of 4 TRUCKEE DONNER P. LIC UTILITY DISTRICT RENEWAL QUOTATIONS 2009-10 RENEWAL OPTIONS 2009-10 Policy/Feature Expiring 08-09 Incumbent Option 1 Option II Option III Marsh Fee $45 000.00 "$50 OOO:QO Renewal Premium Renewal Premium Expiring Premium w/Expiring Carriers `.'wlReco�nmeridation, Total w/o TRIA $351,052.981 $366,585.521 $326,247.52 f 6 i f( f I i 0enn d of A MARKETING OVERVIEW TRUCKEE DONNER PUBLIC UTILITY DISTRICT JUNE 1,.2009 TO JUNE 1, 2010 INSURANCE PROGRAM Insurance Company A.M.Best Rating Response Property including Boiler ACE American Insurance Co incumbent TA +XV(Superior) Quoted Travelers Companies +XV(Superior) Quoted One Beacon Insurance GroupXlil Excellent Quoted Scottsdale Insurance Co +XV Su erior Declined-class of business Zurich American Insurance Co XV Excellent Declined-can not meet coverage and limitExcess Difference in Conditions—Earthquake Landmark American Insurance Co A XII(Excellent) Quoted incumbent $5,000,000 Primary I Essex Insurance Co(incumbent) A XI(Superior) Quoted $5,000,000 Excess Underwriters at Lloyds-$5,000,000 Primary A XV Excellent Quoted Underwriters at Lloyds/Axis-$5,000,000 A XV(Excellent) Quoted Excess Travelers Companies incumbent A+XV(Superior Quoted One Beacon Insurance GroupA Xlll Excellent Quoted Scottsdale Insurance Company A+XV Su erior Declined-class of business Zurich American Insurance Company A XV Excellent Declined-can not meet coverage and limits New York Marine&General A Vill Excellent Declined-deductible too low.Min$50,000+ t Crum&Forster A XIV Excellent Declined-limits too Hi h Excess Liability Allied World AXV Excellent Quoted$10,000,000 Arch Insurance AXV Excellent Quoted$10,000,000 Pollution Legal Liability Steadfast Insurance Co Zurich AXV Excellent Quoted XL Insurance AXV Excellent Declined—not competitive Indication$10K-$20K Crime Federal Insurance Co incumbent A++XV(Superior) Quoted Great American insurance Co I A XI II Excellent Quoted