HomeMy WebLinkAbout07-Risk Management
C~T~'OF SAN BERNARDI~ - REQUE~ FOR COUNCIL AC-r-JN
Dept:
RISK MANAGEMENT
RE~eAD~~ROPERTY
1988 APR -8 PM 9' 30
INSURANCE
From:
JOHN C. KIRWAN
DIRECTOR
Date:
APRIL 7, 1988
~-
Synopsis of Previous Council action:
None.
Recommended motion:
That the
property
Director
report relative to the renewal of the city's real
ins~rance coverage prepared by John C. Kirwan,
of R~sk Management, be received and filed.
p
Slgnatura
Contect person:
Supporting dete .ttlChed:
Phone:
Ward:
FUNDING REQUIREMENTS:
Amount:
Sourca: (ACCT. NO.)
(ACCT. DESCRIPTION)
Finance:
Council Notel:
Agenda Item No,
/
CI,Q OF SAN BERNARDIQ) - REQUEOr FOR COUNCIL AC1:bN
STAFF REPORT
In an attempt to improve the city's property coverages and hopefully
reduce the premiums, the decision was made to seek competitive bids
from several brokers. Bid packages were released to and discussed
with the following brokers:
I. Robert F. Driver Company, Inc. (Renewing Broker)
2. Marsh & McLennan
3. Roanoake
4. Booth & Simpson
5. Alexander & Alexander
6. Bolton & Company
Because of very little lead time (Risk Manager's first day of work
was 3/21/88 and policy expired at 12:01 a.m. on 3/31/88) only the
first 3 actually submitted proposals.
The specific areas of concern with the old policy were as follows:
LIMITS & COVERAGE
1. Maximum Physical Loss - $25,000,000
2. Vehicles covered only (actual cash value) on city property,
with a $25,000 deductible, for physical damage.
3. $1,000,000 sub-limits on
- extra expense
- EDP media and equipment
- valuable papers
(Included in $25,000,000)
EXCLUSIONS
1. Course of Construction (not declared)
2. Flood
3. Vehicles off premises
4. Extra expense
5. Loss of Rents
Deductible - $25,000 (All Perils)
1
15-0264
o'
o
o
o
Earthquake only - No Flood
$25,000,000 maximum coverage
Total Annual Premium $461,000
~ Effective 12:01 a.m. on March 31, 1988, Property Insurance coverage
was bound with March & McLennan on the following basis:
I. PROPERTY - (All Risk a1anket)
$79,759,388
- Real Property
- Personal Property
_ Business Interruption & Extra Expense
- Date Processing
- Valuable Papers
- Loss of Rents
II. FIRE EQUIPMENT - (All Risk Blanket)
- $5,000 Deductible
_ Covered Anywhere - Onsite-
Offsite - In Motion - At Fire Site -
Anywhere in the USA
_ Inland Marine Specialized Automotive
Equipment Form
$2,389,000
III. AUTOMOBILE PHYSICAL DAMAGE - (Blanket) ) $2,000,000
- All Risk Catastrophic
- On Site
- $100,000 Deductible
IV. EARTHQUAKE & FLOOD - (Blanket)
$45,000,000
- DIC Coverage
- 5% per Unit Deductible (standard)
- REal Property
- personal Property
_ Business Interruption & Extra Expense
- Data Processing
- Valuable Papers
- Loss of Rents
_ Automobile * Mobile physical Damage
V. ADDITIONAL COVERAGES
Additional Cost)
(All Items
Included
at
No
- Subrogation Waiver
- COC
_ Permission Granted for Increased Hazard
2
o
o
o
o
_ Personal Effects of Employees Covered up to $2,500
($50,000 Maximum Loss)
- Interest of Contractor (New construction)
_ Automatic Additional Insured (No Reporting Required)
PREMIUM $252,507
(Savings from last year $208,493)
SPECIAL NOTES
1. Last year's policy for $25,000,000 in property
and $25,000,000 in earthquake was layered between'
10 companies.
This year's poricy for $79,759,388 in property,
$2,389,000 in fire equipment physical damage
$2,000,000 in auto physical damage (catastrophe),
and $45,000,000 in earthquake and flood is
written with 5 companies.
2. We are attempting to secure physical damage
coverage similar to that which we have on the
fire equipment for approximately 100 city
vehicles valued at $75,000 or .more each.
3.
Property values
structures in
$43,769,520:
for
the
just the
downtown
following 7
area total
- City Hall
- Convention Center
- Downtown Garage
- Police Headquarters
- Senior Citizens Building
- Central Library
- Central City parking
3