Item C34
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: April 21. 2004
Division:Management Services
Bulk Item: Yes -1L-
No
Department: Risk Management
AGENDA ITEM WORDING: Approval to accept proposal from Marsh USA for Boiler &
Machinery insurance coverage through CNA at a premium of $5,821.
ITEM BACKGROUND: This coverage provides comprehensive protection for the
AC/Heatinglventilation systems for all county buildings and was previously an add-on
component (at additional cost) in our property insurance package. It was broken out as a
separate coverage to allow more flexibility in the property insurance bid process resulting in
considerable savings on our property insurance coverage. CNA provide the best option of four
markets approached.
PREVIOUS RELEV ANT BOCC ACTION: approved as part of 5/1/03-5/01/04 property
insurance package
CONTRACT/AGREEMENT CHANGES: premium increase of $342
STAFF RECOMMENDATIONS: Approval
TOTAL COST:
$5821
BUDGETED: Yes -1L- No
COST TO COUNTY:
$5821
SOURCE OF FUNDS:--primarily ad valorum
REVENUE PRODUCING: Yes_ No x A. ~~. ~TPERMONTH_ Year_
APPROVED BY: County Ally ~MB/PurChasing. .s Managementh:-
~
:J . . / ~
..... - ~ (f/<. fi ./:JdC kIL..L-----./
. SHEILA BARKER
DIVISION DIRECTOR APPROVAL:
DOCUMENTATION:
Included x
To Follow
Not Required_
AGENDA ITEM # C, '34
DISPOSITION:
Revised 2/27/01
Table of Contents
Executive Summary
Boiler & Machinery
1
2
Company Name. Proposal TeOlpli1te .03,31 '04
Monroe County
Executive Summary
The renewal of the Boiler and Machinery was marketed to several carriers with the
following results:
. CNA - provided a quote that is presented
. Hartford Steam Boiler indicated a premium of$15,000
. Zurich - Would be comparable to CNA but would increase the deductibles
. Lexington could include the Boiler & Machinery as part of the Property for
about the same premium, $5,500, but the limit would only be $5,000,000. The
form would not be a Boiler & Machinery form.
CNA, the incumbent carrier has provided the most cost-effective quote for the limit
of $15,000,000.
. f','pc.j! .03'3104.1
MARSH
Boiler & Machinery
Effective Date:
Carriers & Best's Rating:
Coverage:
Locations:
Direct Damage Limit:
Valuation:
Total Values Utilized:
Sub-Limits
Deductibles:
Coverage to Include: .
.
.
.
Exclusions: (Included but not .
Limited to)
5/1/04 to 5/1/05
Continental Casualty (CNA)
(AXV)
Comprehensive including Production Equipment
As per schedule
$15,000,000 per "accident"
Repair or Replacement Cost
$91,543,519
Business Interruption Expense
Utility Interruption limit for direct
supplies of electricity, gas, steam water,
telephone
Expediting Expense
Ammonia Contamination
Water Damage
Hazardous Substance
Media Coverage
Demolition & Increased Cost of
Construction
On direct damage except
At Detention Center at 5501 College
Rd. Stock Island, FL
On Business Interruption/Extra
Expense
24 hours with 24 hour waiting period on Utility
Interruption
$100,000
$100,000
$200,000
$100,000
$100,000
$100,000
$100,000
$500,000
$2,500
$5,000
$2,500
.
90 day notice of cancellationll 0 days for non-payment
Joint Loss Agreement
CFC Refrigerants
Ordinance or Law
Connected & Ready for use Requirement
90 days automatic coverage for newly acquired
location 1 SI,OOO,OOO
Ordinance & Law
State mandated jurisdictional inspections to be
provided by CNA
EDP
.
.
.
.
Sewer piping, piping forming part of a fire
protection system or water piping other than
Feed water piping between any boiler & its feed
pump injection or
Boiler Condensate return piping or
Water piping forming a part of refrigeration
& air conditioning vessels & piping used for
cooling, humidifying or space heating purposes
MARSH
.
.03.13104.2
Boiler & Machinery (Continued)
Exclusions:
(Included but not limited to
cont. )
. From an accident that is the result of an explosion or
fire
. Explosion of an Object other than:
any steam boiler, steam piping, steam turbine, gas
turbine, steam engine, electronic steam generator
any machine when such loss is caused by
centrifugal force or mechanical breakdown
. Nuclear or radioactive contamination
. Earth Movement
. War & Military Action
. Flood surface water, waves, tidal waves, overflow of
any body of water.
. Fire or explosion that occurs at the same time as an
accident on that ensues from an "accident"
. The explosion of gas or unconsumed fuel within the
furnace of any boiler or fired vessel or within the
passages from that furnace to the atmosphere
. Felt, wire, screen, die, extrusion plate, swing hammer,
grinding disc, cutting blade, cable, chain, belt, rope,
clutch plate, brake pad, non-metallic part or any part
or tool subject to frequent, periodic replacement
. Aircraft or vehicles, lightning, sinkhole collapse,
sprinkler leakage, windstorm or hail, freezing, weight
of snow, ice or sleet
. An accident to any object while being tested
. Water or other means used to extinguish a fire
. Part of a boiler, fired vessel or electric steam
generator that does not contain steam or water.
. Insulating or refractory material
. Non - metallic vessel, unless it's constructed & used
in accordance with the American Society of
Mechanical Engineers Code
. Catalyst
. Buried Vessel or piping
. Oven, Stove, furnace, incinerator, pot, or kiln
. Structure foundation, cabinet or compartment
containing the object
. Power shovel, dragline, excavator, vehicle, aircraft,
floating vessel or structure, penstock, draft tube or
well casing
. Machine or apparatus that is used for research,
medical, diagnostic, surgical, dental or pathological
purposes
. Part of a vessel that is not under pressure of the
contents of the vessel or internal vacuum
. An accident to any "object" while it is being tested
MARSH
.
f\'T'Y;i1i .03;31 :04.3
Boiler & Machinery (Continued)
Exclusions:
(Included but not limited to
cont.)
. Structure foundation, cabinet or compartment
containing the object
. Power shovel, dragline, excavator, vehicle, aircraft,
floating vessel or structure, penstock, draft tube or
well casing
. Conveyor, crane elevator, escalator, hoist but not
excluding and electrical machine or apparatus
mounted on or used with this equipment
. Depletion, deterioration, corrosion or erosion
. Wear and tear
. Leakage of any valve, fitting, shaft seal, gland
packing, joint or connection
. Breakdown of any vacuum tube, gas tube or brush
. The functioning of any safety or protection device.
Annual Premium: $5,821.
. "',lon[()i2
"'copc.s"i . 03/31'04.4
MARSH