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HomeMy WebLinkAboutResolution - 2022-R0398 - Boiler and Machinery Insurance from Liberty MutualResolution No. 2022-RO398 Item No. 5.3 September 27, 2022 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 to purchase for and on behalf of the City of Lubbock, boiler and machinery insurance coverage from Liberty Mutual Fire Insurance Company for which the premium amount shall not exceed a rate of .0035 per $100.00; and THAT the City Manager may execute any routine documents and forms associated with said insurance coverage. Passed by the City Council on September 27, 2022 TRAY PAYNV MAYOR ATTEST: Rebf ca Garza, City Secr APPROVED AS TO CONTENT: 1 D. Br Koste ich, Chief inancial Officer APPROVED AS TO FORM: J'ff1)y0"'*e Je f e 1, Deputy City Attorney vwxcdocs/RES.Risk Mgmt-Liberty Mutual [boiler] September 13, 2022 Resolution No. 2022-RO398 Boiler & Machinery Insurance Company: Policy Term: Coverage: Annual Premium: Options to get to 4/1: Total Limit Per Breakdown: Property Damage Limit: Sub Limits: $5,000,000 $5,000,000 Included/120 days $5,000,000 Included Included $5,000,000 $250,000 $25,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 25% of the PD loss/ $250,000 max Business Income: Included 365 days Included Utility Interruption: $5,000,000 $10,000,000 24 hours Valuation: Repair or Replacement Actual Loss Sustained Liberty Mutual Fire Insurance Company 10/01/2022 to 04/01/2024 Provides coverage to various equipment types for the costly physical and financial damage resulting from mechanical breakdown, electrical arcing, artificially generated electrical currents, bulging, cracking, or collapse of pressure vessels. $34,276.90 Including Taxes & Fees (0.0035 Rate) $52,463.00 Including Taxes & Fees (0.0035 Rate) to expire 4/1/2024 $100,000,000 Included Expediting Expense Spoilage Damage Newly Acquired Premises Ordinance or Law Errors and Omissions Brands and Labels Contingent Business Income/Extra Expense Limited Coverage for fungus, wet rot and dry rot Ammonia Contamination Consequential Loss Data and Media Hazardous Substances Water Damage Green Upgrades Increased Cost of Loss Extra Expense Extended Period of Restoration Ordinary Payroll Spoilage Damage Extra Expense Waiting period Property Damage (Actual Cash Value — Equipment 25yrs and older) Extra Expense This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only; it is not a binder and does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 09/06/2022 Prepared for City of Lubbock Confidential. © 2021 USI Insurance Services. All rights reserved. QM.117 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 Solidification $5,000,000 Reduction in Value $5,000,000 System Installation and Soft costs Covered Location(s): Per specifications on file, submitted and attached via email dated 08/10/2022 TIV: $944,832,252 PD ONLY— Excludes All Vehicles 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. This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only; it is not a binder and does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 09/06/2022 Prepared for City of Lubbock Confidential. © 2021 USI Insurance Services. All rights reserved. �.I 18 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. 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 sub -limits that will govern in the event of a loss. This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only; it is not a binder and does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 09/06/2022 Prepared for City of Lubbock Confidential. © 2021 USI Insurance Services. All rights reserved. .� 19