Item C33
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: April21.2004
Division:
Management Services
Bulk Item: Yes -X-
No
Department: Risk Management
AGENDA ITEM WORDING: Approval to accept proposal from Marsh USA for Property
Insurance package through Lexington Insurance Company and Landmark American Insurance
Company at a premium of $392,260.
ITEM BACKGROUND: Provides replacement cost property insurance coverage for county
buildings, contents, communication towers and contractors equipment with a current value of
$91,543,519. Per County purchasing requirements this was put out to bid and the recommended
proposal is the lowest of two bidders.
PREVIOUS RELEVANT BOCC ACTION: Approval to bid this coverage at 11/19/03 Board
Meeting
CONTRACT/AGREEMENT CHANGES: This proposal results in a premium reduction of
$47,682 or nearly 11 % from previous year. Boiler & Machinery coverage was removed from the
package and is being treated as a separate coverage. This aUowed for brokers to be more
aggressive in their bids and was instromental in obtaining this significant premium reduction.
STAFF RECOMMENDATIONS: Approval
TOTAL COST:
$392.260
BUDGETED: Yes -1L No
COST TO COUNTY:$392.260
SOURCE OF FUNDS:yrimarily ad valorurn
REVENUE PRODUCING: Yes No x AMOUNT PER MONTH Year
APPROVED BY: County Atty ~ OMB/Purc~ Risk Management ~
C~tL a~
SHEILA BARKER
DIVISION DIRECTOR APPROVAL:
DOCUMENTATION:
Included x
To Follow
Not Required_
DISPOSITION:
AGENDA ITEM # C. =33
Revised 2/27/01
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Effective Date:
Monroe County, Florida
Property Proposal
Option 1
5/1/2004 to 5/1/2005
Interests Covered:
· Real and Personal Property
· EDP Equipment
· Contractors Equipment
· Communications Towers
Perils Covered:
Risks of direct physical damage or loss including flood and earthquake subject to
policy exclusions.
Locations:
Per the schedule of locations and values on file with the Carrier
Limits of Liability:
$91,543,519.
Per Occurrence
Breakdown ofValua: Buildings
Contents
Electronic Data Processing Equipment
Surveillance Equipment
Towers
Contractors Equipment
Total
Valuation: . Agreed Amount/ReplacementCost
$1,000,000
$ 100,000
$ 100,000
$ 100,000
$ 25,000
$ 25,000
$ 25,000
$ 25,000
$ 25,000
$ 5,000
$ 50,000
$ 50,000
$ 25,000
$5,000,000
$5,000,000
$5,000,000
$70,068,154
$8,408,597
$6,235,041
$302,727
$3,813,000
$2.716.000
$91,543,519
Building Ordinance, Demolition & Increased Cost of Construction
Miscellaneous Unnamed locations
Exhibition, Exposition, Fair or Trade Show
Property in the Course of Construction (Applicable to existing
buildings)
Pollutant Clean Up & Removal- Annual Aggregate
Radioactive Contamination
Expediting Expense
Defense Costs
Protection of Property
Fire Department Service Charges
Royalties
Leasehold Interest
Extra Expense
Occurrence and annual aggregate for flood
Occurrence and annual aggregate for earthquake
Occurrence and annual aggregate for Wind and hail.
MARSH
Deductibles:
Flood Deductibles:
Coverage To Include:
Monroe County, Florida
Property Proposal
Option 1 (continued)
$50,000
$100,000
$100,000
$1,000,000
$5,000
.
on Building & Contents less than $250,000 in value
on Building & Contents greater than $250,000 in value
Earthquake
per occurrence per location for wind /hail
per occurrence for Electronic Data Processing Equipment
except $50,000 for windlhail
$5,000 per occurrence for contractors equipment except $50,000 for
windlhail
$5,000 per occurrence for towers (except for flood & earthquake)
except $50,000 for windlhail
a) 5% of the TIV's at each location involved in loss or damage, subject to
$1,000,000 minimum anyone occurrence for locations wholly or partially
within the Special Flood Hazard Areas (SFHA) or areas of 100 - year
flooding
b) 5% of the TIV's at each location involved in loss or damage subject to
$100,000 minimum anyone occurrence for flood loss or damage from
named stonns
c) 5% of the TIV's at each location involved in loss or damage subject to
$25,000 minimum per occurrence & $100,000
maximum anyone occurrence
Real & Personal Property
EDP
Towers
Surveillance Equipment
Contractors Equipment
$25,000 Sub limit Extra Expense
Transit
Accounts Receivable
Fire Brigade charges & other extinguishing expenses
Debris Removal
$1,000,000 Sublimit Demolition & Increased Cost of Construction
Expediting Expenses
Loss Adjustment Reasonable Expenses
Unintentional Errors or Omissions
$500,000 Sublimit Newly acquired property
Consequential Loss
Civil or Military Authority for a period not to exceed 30 days
Ingress / Egress with 60 day limitation
Defense Costs
90 day notice of non - renewal, increase in rates, restrictions in coverage
90 day notice of cancellation / 10 days for non-payment
Joint Loss Agreement
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MARSH
Notice of Loss:
Exclusions:
(Included but not limited
to):
Monroe County, Florida
Property Proposal
Option 1 (continued)
Notice of Loss shall be given to the insurer as soon as practicable following receipt of
notice of the claim by the Risk Manager of Monroe County, Florida.
· Fraudulent or dishonest acts
· Faulty design or specifications, materials or workmanship
· Artificially generated electrical currents
. Mechanical Breakdown
· Explosion, rupture or bursting of steam boilers, pipers, turbines
Or engines
· Errors in processing or manufacturing of the insured's product
· Wear & Tear, or gradual deterioration
· Normal settling or shrinkage of walls, floors or ceilings
· Loss of Market, business interruption or extra expense loss due to
Delay with respect to property in transit
· Nuclear reaction, Nuclear radiation or radioactive contamination
· Hostile or warlike actions including but not limited to rebellion
Revolution, civil war usurped power or action taken by
Governmental authority
. Money and securities
· Land, Land values and Impounded Water
· Growing corps, standing timer and animals expect for research
· Watercraft, aircraft and motor vehicles
· Waterborne shipments to and from Puerto Rico, the Virgin Islands, Hawaii and
Alaska and via the Panama Canal
· Export shipments after loading on board an overseas vessel or after ocean marine
insurance attaches
· Import shipments prior to discharge from the overseas vessel or until the ocean
marine insurance terminates
. Pollution
. Asbestos
· Policy Authors Clause on Manuscript Form
· Full Waiver Clause on Manuscript Form
. Terrorism
· Increase of loss due to suspension, lapse or cancellation of any lease, license, contract
or order
· Increase of loss due to interference at premises by strikers or other persons with
rebuilding, repairing or replacing the property damaged or destroyed with the
resumption or continuation of business or with the re-occupancy of the premises
. Seepage
. Year 2000
· Fines, Penalties & expenses imposed by order of a government agency
MARSH
Minimum Earned Premium:
Loss Reports:
Waiver of Subrogation:
Monroe County, Florida
Property Proposal
Option 1 (continued)
35%
Quarterly
The standard policy wording involving subrogation is modified to remove
subrogation between the county & entities owned, managed or required to
be removed by agreement contract or lease including interlocal and other
governmental agencies.
MARSH
Monroe County, Florida
Property Program for 2004-2005
Option 1
Landmark American Premium
$86,543,519
excess
$5,000,000
Excluding, Flood,
Earthquake, Wind/Hail $60,000
Lexington lAW AC
$5,000,000 Limit
See Deductibles in
Proposal
$332,260
Including Flood,
Earthquake, Wind/Hail
Total: 5392,260
Optional TRIA premiums:
Primary - 523,100
Excess - 51,800
MARSH