Item C24
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: July 14. 2004
Division: Management Services
Bulk Item: Yes --X- No
Department: Administrative ServiceslRiskManagement
AGENDA ITEM WORDING: Approval for Purchase of Airport Liability insurance with Ace USA
through Arthur J. Gallagher and Company.
ITEM BACKGROUND: Provides $50 million in liability insurance coverage for Airport Operations
(Key West and Marathon). Per Monroe County purchasing policy this coverage was put out for bids
with incumbent providing lowest proposal. Effective date 7/27/04-7/27/05.
PREVIOUS REVELANT BOCC ACTION: Approved current coverage with this carrier effective
7/27/03.
CONTRACT/AGREEMENT CHANGES: Premium of $45,400 represents a reduction of$8,084 or
15%.
ST AFF RECOMMENDATIONS: Approval.
TOTAL COST: $45.400
BUDGETED: Yes -X- No
COST TO COUNTY: $45.400
REVENUE PRODUCING: Yes
No-X. AMOUNT PER MONTH_ Year
APPROVED BY: County Atty _ OMBlPurchasing _ Risk Management _
DMSION DIRECTOR APPROVAL:
~LA~.~~
DOCUMENTATION:
Included --X-
To Follow
Not Required
DISPOSITION:
AGENDA ITEM # Ga~
Revised 2/27/01
MONROE COUNTY, FLORIDA
REQUEST FOR PROPOSALS
FOR
AIRPORT LIABILITY INSURANCE
PROPOSAL FORM
AIRPORT LIABILITY - PREMISES AND OPERATIONS
Company ACE USA - ACE ProDertv and
Casualtv Insurance ComDanv
Underwriting office used Aviation
Address 725 S. Filmera Street. #2050
Los An2eles. CA 90017
Telephone number 213-833-3100
Current A.M. Best Co. rating? A XIV
Is policy form and all endorsements included for review? C8J YES D NO
Are the following coverages included:
Premises and Operations
C8J YES D NO
C8J YES D NO
C8J YES D NO
C8J YES D NO
C8J YES D NO
* Refer to Doliey wordin2
D. 20 of D. 23. item 10
Independent Contractors
Products/Completed Operations
Medical Expense payments
Blanket Contractual
(all related contracts included?)
DYES DNO *
DYES DNO *
(any reporting requirements?)
Personal Injury Liability
(employees and contractual exclusions removed)
D YES C8J NO
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Construction & Alteration Liability Extension
[8] YES D NO
For work performed by YOU or on
your behalf
Contingent Hangarkeepers Liability
[8] YES D NO
Discrimination and Civil Rights Liability
See previous response
Employment Practices Liability
D YES [8] NO
[8] YES D NO
Is the Coverage provided on an Occurrence Basis?
Are defense costs included in the aggregate limit of
Liability?
D YES [8] NO
Expense costs are outside limit
Is requested Named Insured wording used?
See previous response
If not, stated wording to be used
Includes evervthin2 reQuested except
leased workers and "anyone that the
County has responsibility for"
LIMITS/PREMIUMS
It is not required that all possible options be quoted
DEDUCTIBLES
LIMITS 0 $10,000
$50,000,000/$50,000,000 $45,400
$75,000,000/$75,000,000
$100,000,000/$100,000,000 $70,400
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The Proposer stated beiow is the authorized agent of the company or companies proposed, and is
authorized to bind coverages upon acceptance by Monroe County, Florida. Deviations from the
requested program have been stated. Coverage will be issued as proposed. *The insurer agrees to
deliver a policy(ies) to the insured ',vithin forty fiY6 (15) days after inception of coverages. It is agreed
that poliey premiums will be payable upon reoeipt by insured of complete polioy oonforming with the
aooepted proposal.
~
Mav 27. 2004
Date
*The insurer agrees to deliver policies to the insured within forty-five (45) days to ninety (90)
days after inception of coverages. It is agreed that policy premiums will be payable upon
inception of the policy(ies). Policies will conform to proposal as presented to Monroe County
Board of County Commissioners.
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MONROE COUNTY BOARD OF COUNTY COMMISSIONERS-.
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DESCRIPTION OF AIRPORT COVERAGE
NAMED INSURED - (BROAD FORM)
Includes elective or appointive officers of any board,
commission or agency and employees and volunteers
of yours but only with respect to liability arising out
of activities of the Airport. The standard fellow
employee exclusion is deleted.
PREMISES LIABILITY
(EXCLUDING WAR RISKS)
WAR RIsKS ENDORSEMENT AND
TRIA COVERAGE OFFERED AS AN
OPTION
Bodily Injury, including Mental Anguish and Property
Damage. The ownership, maintenance or use of the
Airports and all operations necessary thereto, but
excluding the direct operation of a Control tower,
including the ways and means immediately adjoining
thereto, and including other incidental premises used
by the Named Insured in connection with the business
of the Named Insured. Contingent control tower
liability is included up to policy limit.
EXTENDED BODILY INJURY
COVERAGE
Includes coverage for fright or mental anguish. Also
protects insureds that injure others, through the use of
reasonable force, for the purpose of protecting
persons or property.
BROAD FORM PROPERTY DAMAGE
Damage to property in your care custody and control
exclusion does not apply to:
( Baggage or cargo handled by you, provided
you are not handling the baggage or cargo as
bailee for hire.
To an "auto" while on the airport.
To an "auto" or "mobile equipment" when
your control is solely traffic control.
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MONROE COUNTY BOARD OF COUNTY COMMISSIONERS-'
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DESCRIPTION OF AIRPORT COVERAGE
NON-OWNED AIRCRAFT LIABILITY
Coverage for Bodily Injury and Property Damage,
(including Passengers) arising from the operation of
non-owned aircraft. The coverage limitation for
"Airport Operations" has been removed (provided
there is no known exposure in the County.)
Coverage is limited to fzxed wing or rotor wing with
no more than 10 total seats and a gross weight not in
excess of 12,500 lbs.
INDEPENDENT CONTRACTORS
LIABILITY
Expands definition of your work to include work or
operations performed by you or on your behalf and
materials, parts or equipment furnished in connection
with such operations.
CONTRACTUAL LIABILITY
Expands definition of insured contract to include that
part of any other contract or agreement pertaining to
your business under which you assume the tort
liability of another party to pay for bodily injury or
property damage to a third person or organization.
1. Excludes construction within 50 feet of any
railroad property
2. Any contract that indemnifies or relates to
rendering or failure to render professional
services by an architect, engineer or surveyor
3. Any contract that indemnifies any person or
organization for damage by fire to premises
rented or loaned to you.
PRODUCTS AND COMPLETED
OPERATIONS LIABILITY
Written on an occurrence basis and subject to annual
aggregate.
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MONROE COUNTY BOARD OF COUNTY COMMISSIONERS-.
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DESCRIPTION OF AIRPORT COVERAGE
GROUND HANGARKEEPERS LEGAL
LIABILITY
Provides coverage for Aircraft while not in flight and
in the care, custody or control of the Insured whether
the liability arises out of a direct or indirect bailment.
PERSONAL INJURY LIABILITY AND
ADVERTISING LIABILITY
Coverage for the following offenses committed during
the policy period and arising out of the operations of
the Named Insured: Mistaken arrest, detention or
imprisonment; malicious prosecution; wrongful
eviction from, wrongful entry to or invasion of the
right of private occupancy; oral or written publication
that slanders or libels; unintentional discrimination;
misdirection of a passenger to the wrong aircraft,
automobile or other connecting transportation.
Coverage is subject to the annual aggregate indicated
and the limit is part of and not in addition to the each
occurrence limit.
INCIDENTAL MALPRACTICE
Malpractice, error or mistake by any physician,
surgeon, nurse, medical technician or other person
performing medical services on behalf of an insured in
the provision of emergency medical relief. Coverage
is subject to the annual aggregate indicated and the
limit is part of and not in addition to the each
occurrence limit.
CONTINGENT AND HOST LIQUOR
LIABILITY
Provides coverage for Bodily Injury and Property
Damage arising out of the giving or serving of
alcoholic beverages at functions incidental to the
Named Insured's business, provided the Named
Insured is not engaged in the business,
manufacturing, distributing, selling, serving or
furnishing of alcoholic beverages. Includes
contingent liquor liability for the operations of the
Conch Lounge
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MONROE COUNTY BOARD OF COUNTY COMMISSIONERS.'
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DESCRIPTION OF AIRPoRT COVERAGE
ON PREMISES OWNED AUTOMOBILE
LIABILITY
Provides excess liability coverage for vehicles while
on the Airport premises. Expands coverage by
changing automobile exclusion to include "an auto or
watercraft while on the airport and an auto or
watercraft while not on the airport if responding to an
aviation emergency". This coverage is excess over
any other valid and collectable insurance.
OFF PREMISES AUTOMOBILE EXCESS
LIABILITY
Provides excess liability for vehicles assigned to the
Airport while being operated off the Insured premises.
Policy provides the difference between primary
automobile liability (minimum of$1, 000,000 each
occurrence and $25,000,000 each occurrence.
EXCESS EMPLOYERS LIABILITY
Provides excess coverage over your Employers
Liability. Policy provides the difference between
primary Employers Liability limit (minimum of
$1,000,000 each occurrence or self insured retention)
and $25,000,000 each occurrence. Coverage is
subject to annual aggregate indicated and is part of
and not in addition to the Each Occurrence limit.
CONTINGENT CONTROL TOWER
LIABILITY
Excludes the direct operation of a control tower by
the Insured however coverage is provided for the
contingent exposure up to the full policy limit and
protects against this contingent exposure should a
lawsuit arise implicating the Airport.
FIRE LEGAL LIABILITY
Property damage caused by fire to structures and
fixtures that are rented or leased by the Named
Insured.
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MONROE COUNTY BOARD OF COUNTY COMMISSIONERS-'
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DESCRIPTION OF AIRPORT COVERAGE
SPECIAL PROVISIONS
( 90 day Notice of Cancellation (10 days for
non-payment of premium
( Includes contingent liquor liability for the
operations of the Conch Lounge
( Automatic excess coverage over and above
primary policy covering air shows or meets.
( Inadvertent Error or Omission to report claim
does not void coverage.
MAJOR EXCLUSIONS
( Fellow Employee Exclusion is deleted
( War, Terrorism and Associated Perils
( Terrorism Risk Insurance Act of 2002
( Employment Related Practices
( Pollution and Asbestos
( Contamination and Noise
( Electronic Date Recognition (Policy includes
limited write-back endorsement.)
( Electrical Interference
( Interference with Use of Property
( Grandstands, bleachers and observation
platforms (unless part of a permanent
structure on the airport)
( Automobiles & Watercraft (unless provided)
( Owned Aircraft
NOTE:
Not all exclusions are shown. It will be necessary to refer to the actual policy for
coverage, conditions, provisions and limitations.
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