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HomeMy WebLinkAbout8.1 City Insurance Program Igo - l � CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: January 23 , 1984 SUBJECT 1984 City Insurance Program EXHIBITS ATTACHED Letter from City ' s Insurance Broker dated January 16 , 1984 ; Renewal Quotation RECOMMENDATIO qjr2 )) Authorize broker to bind coverage Authorize budget transfer FINANCIAL STATEMENT: Total Insurance Premium Cost to City - $ 9 , 080 Total Cost Incurred by City 1983-84 - $ 8 , 300 Total Amount Budgeted 1983-84 - $ 8 , 100 DESCRIPTION The City has received the 1984 Insurance Renewal Quotation from the City ' s Insurance Broker . The insurance quotation is broken down as follows : 1984 1983 Policy Coverage Deductible Premium Premium Comprehensive Business Package $ 1 , 621 $ 1 , 080 1 ) Property Coverage $ 97 , 000 $ 250 Incl 2 ) Extra Expenses 10 , 000 - Incl 3 ) Valuable Papers 25 , 000 250 Incl 4 ) Public Employee ' s Bond 200 , 000 250 Incl 5 ) Money & Securities 2 , 000 250 Incl Comprehensive Liability $ 2 , 990 $ 2 , 990 1) Basic Liability $500 , 000 - Incl 2 ) Errors & Omissions 500 , 000 500 Incl 3 ) Owned & Non-owned Motor Vehicles 500 , 000 - 3 , 986 3 , 527 Umbrella Liability $9 , 500 , 000 $ 5 , 225 $ 4 , 625 Sub-Total $ 13 , 822 $ 12 , 222 Less Alameda County Insurance Reimbursement 4 , 742 4 , 222 Total 1984 Premium $ 9 , 080 $ 8 , 000 The 1984 Insurance policy represents the second year of a three-year package which the City purchased last year . As indicated above, the 1984 quotation for the Comprehensive Liability coverage is the same as last year, $2 , 990 . --------------------------------------------------------------------------- COPIES TO: Ben Fernandez ITEM NO. (5- 1 AGENDA STATEMENT: 1984 City Insurance Program Page 2 The total 1984 premium cost to the City is $ 9 , 080 which is $ 1 , 080 more than 1983 . This is primarily attributable to the following : 1 . Increased coverage required for the City ' s fixed assets . Last year those City fixed assets covered totalled approximately $42 , 000 . This year, more than twice the coverage is required. The Public Employee ' s Bond was also increased from $100 , 000 to $200 , 000 . Premium difference, $541 . 2 . Last year the City ' s Umbrella Policy premium was a minimum premium. This year the company has increased its minimum premium by approximately $600 . Approximately 10% of this increase, or $60 will be reimbursed by Alameda County. It is also important to note that there has been an increase in the auto coverage due to the addition of a detective car which was approved in the 1983-84 budget. However, this additional premium will be paid by Alameda County in accordance with its agreement with the City . The City budgeted a total of $8 , 100 in the 1983-84 budget for insurance coverage . Since a portion of each years insurance is prepaid for the subsequent fiscal year, a total of $8 , 300 is needed for fiscal year 1983-84 . In conclusion, the 1984 insurance quotation is very reasonable considering the broad coverage which the City is provided. It is Staff ' s recomendation that the City Council take the following actions : 1 ) Authorize the City ' s insurance broker to bind the proposed coverage 2 ) Authorize a budget transfer in the amount of $200 from the Contingent Reserve to the Insurance Budget. COOPER McKENZI E MURPHY POST OFFICE BOX 1030 PLEASANTON.CA.94566 PHONE: 415-846.4423 January 16 , 1984 City of Dublin 6500 Dublin Blvd. , Suite 218 Dublin, CA 94568 Attn : Richard Ambrose Dear Rich : Enclosed please find one original and five copies of our renewal quotation for the commercial insurance. We have broken down the County of Alameda portion of the premium. We are pleased that the rates and premiums remain relatively stable . We cannot guarantee how long this will last, but we are pleased that the insurance outlay for the City of Dublin is reasonably priced at this time . If you would like my personal assistance in a presentation to the Council, please do riot hesitate to call. Best regards , COOPER MCKENZIE MURPHY Ben -Fernandez BF:mw Enclosures you R/ �c�e tlrnl e/A6E NT COOPER McKENZI E MURPHY POST OFFICE 80X 1030 PLEASANTON.CA.94566 PHONE:415-846-4423 CITY OF DUBLIN COMMERCIAL INSURANCE RENEWAL YOU /AGENT � COOPER McK MURPHY 11Jall4ance PROPERTY LIMITS Of ANNUAL COVERAGES LIABILITY DEDUCTIBLE PREMIUM 1 Buildings at: ❑ All Risk C R All Perils Replacement ❑ Fire, EC ,V&MM Cost $ ❑ Sprinkler Leakage C Actual ❑ Optional Perils Cash Value % Coinsurance 2 Contents at: 6500 Dublin Blvd, Dublin , CA 94568 $80 , 000 . All Risk All Perils ;X Replacement ❑ Fire, EC , VaMM Cost S 250 . See Recap * Sprinkler Leakage = Actual C Optional Perlis Cash Value Reporting 9 0 x Coinsurance Non-Reporting 3 Improvements and Betterments All Risk Replacement All Perils Fire, EC , VBMM Cost $ Sprinkler leakage Actual Optional Perils Cash Value % Coinsurance 4 Other property coverages Electronic data processing equipment - word processor $17 , 000 . $250. See Recap Total Annual Premium—Property See Recap COOPER McKENZIE MURPHY ® �lQll/2CLIiCG TIME ELEMENT LIMITS OF ANNUAL COVERAGES LIABILITY PREMIUM 1 Loss of earnings at Gross earnings at 3 Loss of rents at 4 Extra expenses at 6500 Dublin Blvd. , Dublin, CA 94568 $10 , 000.. See Recap 5 other Total Annual Premium—Business Interruption See Recap COOPER i LIE MURPHY �l1 U;IQ-9t,C8 ®/Pi All Risk Property Form Insures the property against all risk of direct physical loss Exclusions are as follows: Mysterious disappearance of property Damage done to property being worked upon Artificially generated electrical currents Wear, tear, marring or scratching, insects, vermin Dampness or dryness of atmosphere, changes in temperature Rust or corrosion Theft from an unattended or unlocked auto Fidelity of an employee or officer of the bank Damage done by rain, snow or sleet to property in, the open Earthquake Flood - surface waters or water which backs up through sewers or drains. Water below the surface of the ground, including that which exerts pressure on flows, seeps or leaks through sidewalks, driveways, foundations, walls, basement or other floors, or through any opening. COOPER A .E MURPHY . /l1((/C(l-/tCG el"Aacement Cost Endorsement This endorsement provides coverage on the basis of full replacement cost without deduction for depreciation on any loss sustained subject to the terms of the co-insurance clause. This endorsement applies only to the building and items specifically insured on the face of the policy. In arriving at the proper amount of insurance to comply with the co-insurance clause no deduction is taken for depreciation. •7 rour��nOtyrrMrR huMQAT �AGl NT ® COOPER McKEN7_lE MURPHY I� �ldlG?lG liC6 Business Interruption Reimburses insured for losses resulting directly from necessary interruption of business caused by damage to or destruction of real or personal property, by perils insured against. The company is liable for the actual loss sustained by the insured resulting directly from such charges and expenses which continue during'the interruption of business. Resumption of Operation It is a condition that the insured should try to reduce his loss resulting from the interruption of business. (a) by complete or partial resumption of operation at the location described in the policy. (b) by making use of undamaged property at another location. Such reduction in loss of gross earnings is taken into consideration in arriving at the amount of the loss. Policy covers expenses related to reducing loss. �o� r hiwmirt (woar�r COOPER Mcn 2 MURPHY Extra. Expense Insurance It' your building was rendered untenantable by fir;, or by any other insured peril, it would probably be deemed necessary to secure other quarters to continue with business. However. the use of such buildings would undoubtedly involve many extra expenses such as rent, installation of telephones, etc. An Extra Expense policy would provide the necessary money for such expenditures. ravi� MryrrMW iacvanrBl�aenr l COOPER MIKE. MURPHY ®/� �� /Zt1lG2lLtLCG FLOATER LIMITS OF ANNUAL COVERAGES LIABILITY DEDUCTIBLE PREMIUM 1 Accounts Receivable 2 Contractors Equlpment 3 Motor Truck Cargo 4 Neon Sign 5 Valuable Papers 6500 Dublin Blvd . , Dublin, CA 94568 $25, 000 . $250 . See Recap 6 Salesmans Samples 7 Installation Floater 8 Other Total Annual Premlum—Floater Coverage See Recap COOPER McKENZIF_ MURPHY �t.3tc2�incc. COMPREHENSIVE LIMITS OF ANNUAL CRIME COVERAGE LIABILITY DEDUCTIBLE PREMIUM 1 Employee Dishonesty Public Employees Faithful _Performance Blanket Bond $200 , 000 . $250 . See Recap 2 Storekeepers Burglary & Robbery 3 Money and Securities—Broad Form Inside Premises $2, 000 . $250 . See Recap Outside Premises $2 , 000 . $250 . See Recap 4 Mercantile Open Stock 5 Mercantile Robbery and Safe Burglary 6 Other crime Coverage Total Annual Premium-Crime See Recap COOPER Ntc„—wLlE MURPHY Commercial 6 �r�rl rn.ncc Blanket Bond r This covers money, securities or property belonging to the insured or for which the insured is legally liable. Burden of proof rests with the insured. Policy does not cover inventory losses based on an inventory computation or a profit and loss computation, unless the insured can prove through evidence wholly apart from such computation that the loss was sustained through dishonest acts of employees. Each employee is bonded in like amount. Public Employees Faithful Performance Blanket Bond extends coverage to all elected officials , appointees , consultants and volunteers . Lvo-uq��aymkrd ' NMUII AO[NT A l COOPER MCnCI,,-iE MURPHY �1111d(I,IiC'Es ®il Money and Securities Broad Form The company pays for loss of money and securities by the actual destruction, disappearance on wrongful abstraction of same from within the premises or while being conveyed by a messenger outside the premises. rouq' narperlM M..trcxi�woerrr i tY COOPER A. NZIE MURPHY ® �1�1(.7(lliCC GENERAL LIMITS OF ANNUAL LIABILITY LIABILITY PREMIUM Bodily Injury & Property Single limit $ D ma e Liabilit 500 , 000 . Bodily Injury Liability Each occurrence S Aggregate S Property Damage Liability Each occurrence $ Aggregate $ Form of coverage: ❑ Manufacter's Contractor [2 COL ❑ OLT 1 Premises and/or Operations Premisos Medical Each person $ 1 , 000 . Each accident $10 , 000 . Included 2 Products and Completed Operations Included 3 Independent Contractors i Included 4 Blanket Contractual >< Included i 5 Broad Form Property Damage Included I I bPersonal Injury A False Arrest' Included B I.; bet & Slander i ® C Wrongful Eviction & Wrongful aatry 7 Otter Extended Liability Endorsement Included Municipal Errors & Omissions Total Annual Promlum—General liability See Recap COOPER McKENZIE MURPHY Extended Business Liability Endorsement 1. Covers employee as an additional insured. 2. Contractual liability with certain limitations. 3. Broad form property damage. 4. Non-owned watercraft coverage. (under SO ft. in length) S. Fire legal liability. 6. Host liquor liability. 7. Incidental malpractice liability. 8. World wide products. 9. Personal injury liability. 10. Advertising offense liability coverage. I l. Other Municipal Errors & Omissions Liability COOPER Mc ENZIE MURPHY �U1(GI(l,ll(G Personal Injury A. False arrest, detention or imprisonment, or malicious prosecution. B. Libel, slander, defamation or violation of right of privacy. C. Wrongful entry or eviction or other invasion of right of private occupancy. Exclusion C relating to employee deleted ❑ roup/iiOrD[rtlHd fmacrxt' (�oerrr COOPER McK MURPHY �t�U:1CLltCF.' ' AUTOMOBILE LIABILITY AND PHYSICAL DAMAGE COVERAGE INSURANCE FOR CLAIMS ARISING OUT OF THE USE OF MOTOR VEHICLES INCLUDING COST OF LEGAL DEFENSE © For all owned motor vehicles (see schedule) (owned and operated by County of Alameda) ® For non-owned including hired or leased motor vehicles Specified aLi;ornob;;es & trucks (see schedule) Bodily Injury Liability $ Each Person $ Each Occurrence Property Damage Liability $ Each Occurrence Single Limit Liability (if applicable) $ 500 , 000 . Personal Property Insurance/Personal Injury Protection (no fault) 0 Uninsured Motorists B.I. $ Each Person $ Each Accident Physical Damage Schedule VEHICLE COMP. OTHER COLLISION TOTAL ANNUAL YEAR/MAKE DED. TYPE/DED. TYPE/DED. PREMIUM 1981 Chev 4 Dr.Malibu See 1 - 1G1AW69A4BR8718 NO PHYSICA DAMA E INSURANCE PROVIDED Recap 1981 Ford 2 Dr .Granada 2 . #1FAPB26B7BG148252 1978 Merc. 2 Dr.Cougar 3 . #8H93H540921 1983 Dodge Diplomat 4 - #2B3BG26S4DR2416761 1983 Dodge Diplomat 5 . #2B3BG26S6DR241762 1983 Dodge Diplomat 6 . #2B3BG26S8DR241763 1983 Dodge Diplomat 7 . #2B3BG26SXDR241764 1983 Dodge Diplomat 8 • #2B3BG26SlDR24 1 6 1983 Dodge Diplomat 9 . #2B3BG26S3DR241766 1983 Buick Regal 10 . / COOPER McKEN_ MURPHY I ® �lJlUIILILCf% i i Umbrella Liability This type of Liability Insurance which is an "Umbrella" of Blanket Catastrophe Excess Liability protection will accomplish three purposes for your Business: (1) Excess coverage over other Liability Insurance carried by you—we call this the "underlying insurance." ; (2) Coverage of all liability exposures, except a few specifically excluded exposures, subject to a large deductible. R (3) Automatic replacement coverage for underlying Liability Policies which are reduced r or exhausted by loss. UMBRELLA LIABILITY INSURANCE can also be provided as personal protection for Executive Officers of Corporate Business and Partners of a Partnership. . i Limit of Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9 , 5 0 0 , 0 0 0 . 1 roU IEI/SK, ;AO!HT m•E� i COOPER A1c .cNLIE MURPHY Umbrella Liability Coverages 1. Personal Injury - Even if Personal Injury Coverage is provided in the primary policy, the Umbrella is broader in that it provides coverage for Mental Injury, Mental Anguish, Shock, Disability, Humiliation and Racial or Religious Discrimination which are not included in the standard Personal Injury endorsement. 2. Advertising Liability is included in the definition of Personal Injury. 3. Blanket Contractual - both oral and written contracts. 4. World-Wide coverage. 5. Employers' Liability - claims made by employees not excluded. 6. Blanket "X", "C", "U" coverage. 7. Liquor Law Liability coverage. 8. Non-Owned Aircraft Liability Coverage - also owned aircraft if included in schedule of primary insurance. 9. Non-Owned Watercraft Liability Coverage - also owned aircraft if included in schedule of primary insurance. 10. Drop-Down Coverage - in the event of the exhaustion or reduction of primary Aggregate limits. 11. Additional Insureds: (a) Officers, directors and stockholders of named-insured while acting within the scope of their duties as such - also employees but not with respect to their own automobiles. (b) Any additional insured named in the underlying insurance - for the same coverage as afforded thereunder. (c) Any person or organization to whom named insured is obligated under written contract to provide coverag� as is afforded under the Umbrella policy with respect to operations by or on behalf of the named insured. " you w,r�,Fry iawnnrrl��aer+r ts1 DM COOPER , 'IE MURPHY ® �lb((IQIZCC' Umbrella Liability Coverages [con't] 12. Care, Custody or Control Coverage - excepting only liability assumed under contract unless excluded. 13. Occurrence Coverage - matching new standard primary policy definition. 14. Products and Completed Operations coverage - using new standard primary policy provisions. 1�ro�q�rakaNn In11/GNC AOCNr COOPER Nicn _i'L MURPHY �� �1,�lG1(IiIICG' Total Annual Premium-Property - Comprehensive S 1 , 621 . Business Package Included Total Annual Premium-Business Interruption $ Above i Total Annual Premium-General Liability $ 2 , 990 . Total Annual Premium-Automobile $ 3, 986 . I Included Total Annual Premium-Floater Coverage $in Package Premium Included Total Annual Premium-Crime in Package Premium Total Annual Premium-Business Umbrella $ 5, 000 . I Not Total Annual Premium-Worker's Compensation $ Provided i Total Annual Premium-Other Coverages $ Total Annual Premium $13 , 597 . I Estimated Annual Cost of Present Policies Comments The Comprehensive Business Package premium increased from $1 , 080 due to a substantial increase in office property and a doubling of the Blanket Bond limit. All rates remain the same. The County of Alameda will pay $4 ,719 for their portion of the premium per agreement reached in 1982 . This provides for all automobile liability exposures and a certain portion of the general liability exposures . The total annual premium compares favorably with the $11 , 997 ( included County of Alameda ' s share ) paid in 1983 .