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Home My WebLink AboutC-3006 - Property, Watercraft & Helipad Premises Liability Insurance0 0 CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER April 5, 1995 TO: MAYOR AND CITY COUNCIL FROM: City Manager AGENDA NO. � 2@109M C- 3006 SUBJ.: Property. Watercraft and Helipaad Premises Liability Insurance: Policy Renewal 1995/96 The City retains the services of an insurance broker, Cal - Surance, to assist the City in the purchase of all types of insurance coverage to protect the City's assets. Cal - Surance has been the City's broker for over ten years. The property, watercraft and helipad liability insurance renewal is every April. Our broker begins to market our renewal 60 days in advance of the renewal date. However, due to the limitations in the property insurance markets this year, our broker was, only, able to secure our quotes and bind coverage March 31, 1995. The markets approached by the broker for the property coverage were: Fireman's Fund, TIG- TransAmerica, and our existing carrier, Home Insurance (Home Insurance was purchased by Zurich Ins.). The markets for Earthquake /Flood insurance were extremely limited (due to the accumulated total of natural disasters in California in recent years), however, due to the aggressive marketing of our broker highly competitive quotes developed and the only markets responding with these competitive quotes are those listed in the attached schedule. The markets for the Watercraft and Helipad coverage also experience limitations and the only markets responding with competitive quotes are those listed in the attached schedule. When insurance markets are watercraft and helipad premises either limit the amount of cove the premium charged for the sam the insurance company does bo following occurred: limited such as earthquake /flood, liability, the insurance companies will age that can be purchased or increase or higher coverage limits. Sometimes, h. In the case of our renewal, the US) • ;TI :. i purchased as a member of A.B.L.E QKXT =K'114*717 Boiler & Machinery Coverage Difference Premium year. City previously Increase Property Increase is due to one full year of $3,500 $17,432 coverage for the Central Library, and $1,562 Property- valuable papers. this Earthquake /Flood $10,000,000 in coverage was only offered $5,876 Earthquake by the insurance company for the to no exposure. following city owned properties: City $0 Sprinkler Leakage Hall complex, Central Library, Police $145,906 $31,388 Station, Fire Station #3, and Corporate Property -Extra Yard (General Services). The broker is this year. City negotiating the addition of the Utilities $1,155 Expense Yard. The underwriter would only to no exposure. consider the addition of the Utilities Yard Watercraft Coverage limits remained the same. Hull $1,562 coverage is only on the Sea Watch I & I1 and the Boston Whaler. Limited market(s) increased premiums. Helipad Coverage limits remained the same. $8,816 Limited market(s) increased premiums. Aircraft Liability is now group purchased as a member of A.B.L.E QKXT =K'114*717 Boiler & Machinery New coverage this year. City previously $3,971 $82,870 self - insured. Watercraft $17,432 $15,870 $1,562 Property- New coverage this year. City previously $6,850 Earthquake uninsured due to no exposure. $10,000 $0 Sprinkler Leakage $177,294 $145,906 $31,388 Property -Extra New coverage this year. City previously $1,155 Expense uninsured due to no exposure. The following is a comparison of the proposed premiums with last year's premiums and the premium increase. Property Policy* $42,127 $30,964 $11,163 Earthquake /Flood $88,746 $82,870 $5,876 Watercraft $17,432 $15,870 $1,562 Helipad /Airport Premises $15,018 $6,202 $8,816 Boiler & Machinery $3971 $0 $3,971 Broker Fee $10,000 $10,000 $0 TOTAL $177,294 $145,906 $31,388 * Total premium includes all property coverage including new coverage(s). 2 • • The premiums for all of these coverages are budgeted in the internal service fund for the 1995/96 fiscal year. Recommendation: Ratify the action of the City Manager in binding coverage of the above insurances on March 31, 1995 for $177,294 in total premium and broker's fee. 3 ('3,$) 0 CITY OF NEWPORT BEACH OFFICE OF THE Cr1Y MANAGER May 2, 1994 MAYOR AND CITY COUNCIL FROM: City Manager • AGENDA NO. /S �14r The following is a brief outline of types of insurance coverage and costs that are subject to renewal. Policy Inauraace Co. Property Home Ins. Co. Diff. In RLI Ins. Co. Conditions" Associated Ins. Co. Cover@" Value /Limits Deductible Premiums Real Property $18,007,878 $5,000 $25,893 Personal Property $2,117,644 $952,600 Propt of Others $50,000 $25,000,000 Books (Library) $5,601,956 $25,000,000 Valuable Papers $300,000 Fine Arts $1,000 Course of Const.• $500,000 Total: — — — F0,Tff Earthquake /Flood $5,000,000 10%ofvalue $70,100 Excess Ins. $5,000,000 $12,770 Watercraft Fireman's Fund Hull Protect. & Indemn. Helicopter Americas Ins. Co. Hull Liability Airport /Premises Total: ---P-2,'97-0 $105,000 $1,000 $2,625 $10,000,000 $13,245 Total: =,8/ $952,600 2.5% of value $38,315 $25,000,000 No ded. $14,598 $25,000,000 No ded. $6,231 Total: 44 Notes: Following Property coverage Value /Limits will indicate the scheduled value of property included in the insurance policy, e.g., buildings, contents, library book inventory, etc. *Course of Construction is applicable to the period of time that the new library is under construction. "Difference in Conditions policies are applicable to earthquake and flood insurance with total limits of $10,000,010. The deductible is 10% of total Insured value. Following Watercraft, Hull coverage applies to the three rescue boats in the Marine Department. The two clean -up craft are not covered as the premium for hull damage was LI deemed excessive. All five craft are insured under the Protection and Indemnification (liability) coverage to limits of $10,000,000. Following Helicopter, Hull coverage applies to the two Police helicopters valued at a total of $952,600. The 2.5% deductible is applicable to the value of each. Limits of insurance at $25,000,000 covers both helicopter operations and airport exposure. The following is a comparison of the proposed premiums with last year's premiums. 1994 1$93 Property Policy $25,893 $15,604 Diff. in Conditions $70,100 $51,000 Excess Coverage $12,770 $10,875 Watercraft $15,870 $14,385 Helicopters /Airport $59,144 $60,269 Kevin J. Murphy City Manager Z RESOLUTION NO. 94 -30 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AWARDING CONTRACTS TO HOME INSURANCE COMPANY, FIREMAN'S FUND INSURANCE COMPANY, AND SOUTHERN MARINE AVIATION INSURANCE COMPANY ('94 -'95). WHEREAS, the City of Newport Beach has sought to renew the City's property insurance, helicopter insurance and marine insurance; and WHEREAS, the proposed insurance renewal package includes, property coverage of $19,000,000- replacement value, aviation coverage limits of $25,000,000 and watercraft coverage limits of $10,000,000. Coverage is for one -year commencing April 1, 1994 to and including April 1, 1995; and WHEREAS, after reviewing proposals for insurance coverage, the City Council finds and determines that it is in the best interests of the City to award insurance contracts as follows: Home Insurance Co., - real and personal property, broad form fire and extended coverage. Fireman's Fund Insurance Co., - watercraft, hull & liability coverage. Southern Marine Aviation Insurance Co., - helicopter hull, airport, and liability coverage. WHEREAS, the program costs provided by Home, Fireman's Fund and Southern Marine Aviation insurance companies compare favorably with other insurance available to the City, and entering into the proposed contracts is fair and equitable. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newport Beach hereby awards contracts for insurance to the companies listed, for the term stated and in the amounts provided; and BE IT FURTHER RESOLVED that all funds set aside for payment of losses shall be established and encumbered in a special insurance reserve fund and shall not be used for any other Municipal purpose until all incurred losses are actually paid or settled. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute future renewals of the listed insurance policies whose premiums remain with amounts budgeted for that purpose. ADOPTED this 9th day of May , 1994. ATTEST: i / //� �!�!liI 2�,5�&; Lr-� Mayor