HomeMy WebLinkAbout16 - Pollution Legal Liability Renewal• CITY OF NEWPORT BEACH
HUMAN RESOURCES DEPARTMENT
MEMORANDUM
Date: December 6, 2001
To: Mayor and Members of the City Council
From: Lauren F. Farley, Risk Manager
Subj: Pollution Legal Liability Renewal
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Recommendation:
c;s;UNCIL AGENDA
TAD.
v)- - l C l
City Council approve the renewal of the pollution and legal liability insurance
coverage with Greenwich Insurance Company the for the three (3) year policy
period of 12/01/01 to 12/01/04 for the quoted premium of $296,912.
Background:
This insurance coverage is exclusive to the exposures of pollution and
remediation legal liability. These are defined as sudden and gradual pollution,
such as a leak from one of our underground storage tanks (UST), spill of a trash
truck, pollution at a scheduled location (Big Canyon Reservoir), pollution of water
supply and sewers lines owned and maintained by the City. These exposures
are excluded by the City's excess general liability policy. This coverage became
effective 1 -31 -96 and covers all scheduled City of Newport Beach properties and
scheduled non -owned disposal sites formerly or currently utilized by the City for
the residential waste. This insurance coverage was originally with Reliance
Insurance Company of Illinois and then changed to Greenwich Insurance
Company and is still underwritten by ECS Underwriting, Inc. ECS also provides
loss control and risk management support services designed to assist in
identifying, analyzing and controlling possible environmental liability issues for
the City of Newport Beach.
Renewal Quotation:
Our broker, Mark Zahoryin from Cal Surance, began reviewing this coverage in
July with ECS. ECS expressed their continued commitment to renew this
coverage for the City of Newport Beach. With that information, our broker
examined the insurance market and found that ECS's quote would be the most
competitive quote the City would receive from the insurance market.
Page 2
The following chart provides a comparison of the existing coverage to the
renewal quote:
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Existing Coverage
Quote
Limit of Liability
$15,000,000
$15,000,000
(Each Loss)
Limit of Liability
$15,000,000
$15,000,000
(Total All Losses)
Retention
$50,000
$50,000
(Deductible /SIR)
Non -Owned
$5,000,000
$5,000,000
Disposal Sites
Premium -3 Years
$308,973
$296,912
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