HomeMy WebLinkAboutResolution - 2021-R0333 - Boiler & Machinery Insurance from Liberty Mutual Fire Insurance 9.14.21Resolution No. 2021-R0333
Item No. 7.14
September 14, 2021
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Manager of the City of Lubbock is hereby authorized and directed 1
purchase for and on behalf of the City of Lubbock, boiler and machinery insurance covera€
from Liberty Mutual Fire Insurance Company for which the premium amount shall not exceed
rate of .0039 per $100.00; and
THAT the City Manager may execute any routine documents and forms associated
said insurance coverage.
Passed by the City Council on
September 14, 2021
L.-
DANIEL M. POPE, MAYOR
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Rebe ca Garza, City Sec"
APPROVED AS TO CONTENT:
D. Blu K stelich, Chief Financial Officer
APPROVED AS TO FORM:
H se 1, Deputy City Attorney
vwxcdocs/RES.Risk Mgmt-Liberty Mutual Fire Ins. Co.
September 1, 2021
Resolution No. 2021-R0333
Boiler & Machinery
Insurance Company: Liberty Mutual Fire Insurance Company
Policy Term: 10/01/2021 to 10/01/2022
Coverage: Property insurance covers your interest against direct physical loss or
damage by covered perils to named property that you own or are
required to insure. See attached schedule for covered locations.
Annual Premium: $34,996.78 Estimated as worst case scenario by lead insurer.
Total Limit Per Breakdown: $100,000,000
Property Damage Limit: Included
Sub Limits:
$5,000,000
Expediting Expense
$5,000,000
Spoilage Damage
Included/120 days
Newly Acquired Premises
$5,000,000
Ordinance or Law
Included
Errors and Omissions
Included
Brands and Labels
$5,000,000
Contingent Business Income/Extra Expense
$250,000
Limited Coverage for fungus, wet rot and dry rot
$25,000
Ammonia Contamination
$5,000,000
Consequential Loss
$5,000,000
Data and Media
$5,000,000
Hazardous Substances
$5,000,000
Water Damage
25% of the PD loss/
Green Upgrades Increased Cost of Loss
$250,000 max
Business Income:
Included Extra Expense
365 days Extended Period of Restoration
Included Ordinary Payroll
Utility Interruption:
$5,000,000 Spoilage Damage
$10,000,000 Extra Expense
24 hours Waiting period
Valuation:
Repair or Replacement Property Damage (Actual Cash Value — Equipment 25yrs and older)
Actual Loss Sustained Extra Expense
Deductibles:
$25,000 Combined Property Damage / spoilage/ammonia
24 Hours Extra Expense
Conditions:
60 days
Notice of Cancellation except Non Pay
Included
Liberalization
Included
Selling Price Valuation
Included
Joint or Disputed Loss Agreement
Included
Off -Premises Equipment Coverage
Included
Tria - Terrorism Coverage
Included
Economic and Trade Sanctions
Included
Covered Equipment Deductible Waiver
Included
Jurisdictional Inspections
$250,000
Solidifcation
$5,000,000
Reduction in Value
$5,000,000
System Installation and Soft costs
Covered Location(s): Per specifications on file with CNA Ins. Co. submitted and attached via email
dated 08/13/2020.
TIV: $904,800,866 PD ONLY — Excludes All Vehicles
Please be aware that CNA invoices our insured's directly the cost of the certificate fees we pay to the
jurisdiction on their behalf in 12 jurisdictions. Most jurisdictions in the United States direct bill
owners of boilers and pressure vessels for their operating certificates. Hawaii, Vermont, New York
State, Kentucky, South Dakota, New Jersey, California and the municipalities of Los Angeles, Omaha,
New Orleans, and Jefferson Parish, Louisiana do not. These jurisdictions require the insurance
company of record to pay on behalf of their insureds. As such your client will be receiving a separate
bill for any jurisdictional certificate fees for inspections we perform in those jurisdictions, along with
a handling fee of $10 per object.
This renewal proposal is subject to there being no known or reported losses from this date through
inception Otherwise this renewal proposal shall be subject to renegotiations.
If you have any questions please feel free to give me a call. This proposal will remain in effect for 90
days or until the effective date of the account whichever comes first.
SPECIAL CONDITIONS / OTHER COVERAGES:
NO FLAT CANCELLATIONS
ALL FEES ARE FULLY EARNED AT INCEPTION
We will need a written request in order to bind coverage. If the Insurer binds the risk following your
written request, the terms of the policy currently in use by the Insurer will govern the Insurer's quote.
GENERAL TERMS
In all cases, policy and carrier wordings take precedence.
DEPOSIT PREMIUM
The deposit premium is the minimum portion of premium due to the carrier at the inception of the
policy. The premium for the policy term will be adjusted according to the provisions stated in the policy.
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MINIMUM PREMIUM
The minimum premium is the LEAST amount of premium retained by the carrier if the policy is in effect
for the full term.
MINIMUM EARNED PREMIUM
The minimum earned premium is the LEAST amount of premium that will be retained by the carrier in
the event of cancellation. The actual amount of earned premium retained will be the GREATER of the
actual premium developed based on the time the policy was in effect OR the minimum earned premium
as stated in the policy.
Excluded coverage or other coverages sought may be available: please discuss with USI
Other exclusions and policy limitations may apply. Please refer to the actual policies for specific terms,
conditions, limitations, exclusions and sublimits that will govern in the event of a loss.