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HomeMy WebLinkAboutResolution - 2023-R0122 - Property Insurance from Zurich American Insurance CompanyResolution No. 2023-R0122 Item No. 6.9 March 7, 2023 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Manager is hereby authorized and directed to purchase for and on behalf of the City of Lubbock, property insurance by and between the City of Lubbock and Zurich American Insurance Company in the amount of $50,000,000 insurance coverage for Montford Dam, for a total premium in an amount not to exceed $198,834.00; and THAT the City Manager or designee may execute any routine documents and forms associated with said insurance coverage. Passed by the City Council on AT EST: T�T Courtney Paz, Interim City Secretary APPROVED AS TO CONTENT: D.-BTu Ko telich, di& Financial Officer APPROVED AS TO FORM: ell, Deputy City Attorney vw/ccdocs/Res.Risk Mgmt-Zurich American Ins. February 21, 2023 March 7, 2023 Resolution No. 2023-R0122 John T. Montford Dam Property Insurance Company: Zurich American Insurance Company Policy Term: 04/01/2023 to 04/01/2024 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: $298,834.00 POLICY LIMIT OF LIABILITY This Policy shall pay no more than $50,000,000 for any one occurrence, subject to the following Sublimity of Liability and Annual Aggregate Limits of Liability. In no event shall this Polies liability exceed the Limit of Liability above or the scheduled values as stated on Endorsement A — Schedule of Locations & Values Insured, whichever is less, in any one occurrence. SUBLIMITS OF LIABILITY The Policy shall pay no more than the following Sublimft(s) of Liability in any one occurrence. NOTE: Coverage shall only apply for Individual subllmits when a dollar amount Is entered below: In no event shall these Sublimlts of Liability Increase the Policy Unit of Liability. (1) (2) (3) (4) (5) (6) $ 50,000,000 $ NCP $ 50,000 NCP Physical Damage Coverage to the Covered Property; Loss of Revenue; Accounts Receivable; Interruption by Civil or Military Authority; $ 500,000 Expediting Expense; $ 500,000 Extra Expense; $ 5,000,000 Or 250% of the amount of Insured physical loss of or damage to Covered Property whichever is less - Debris Removal Coverage; (8) $ 100,000 Fire Department Service Charges; (9) NCP Ingress and Egress; (10) $ 100,000 Loss Adjustment Expense; (11) $ 500,000 Newly Acquired Locations; (12) $ 1,000,000 Ordinance or Law / Demolition or Increased Cost of Construction; (13) $ 2,500,000 Transit - any one conveyance; (14) $ 25,000 Valuable Papers & Records; (15) $ 50,000,000 Terrorism ANNUAL AGGREGATE LIMITS) OF LIABILITY The maximum amount the Company will pay for loss or damage In any one occurrence, and/or in the aggregate annually for loss or damage from all occurrences, shall not exceed the following amounts: (1) $ 10,000,000 By the peril of EARTHQUAKE; (2) $ 10,000,000 By the peril of FLOOD; (3) $ 10,000,000 By the peril of NAMED STORM 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: 02/17/2023 Prepared for City of Lubbock Confidential. © 2021 USI Insurance Services. All rights reserved. W.124 DEDUCTIBLES AND WAITING PERIOD(Sl From the amount of each claim for Insured physical loss of or damage to Covered Property In any one occurrence, there shall be deducted the applicable amount shown below, and then the liability of the Company shall be only for the amount of such Insured loss or damage in excess thereof, subject to the Limit, Subiimits or Annual Aggregate Limits of Liability as stated above. A. $ 2,000.000 Physical loss of or damage to Covered Property, unless otherwise shown below; B. $ 50,000 Physical loss of or damage to SURVEILLANCE EQUIPMENT'; C. $ 2,000,000 As respects EARTHQUAKE': D. $ 2,000,000 As respects FLOOD' E. $ 2,000,000 As respects NAMED STORM' F. NCP Waiting Period - Loss of Revenue In the event that more than one deductible shown above or specified In any endorsement attached to this Policy shall apply to Insured physical loss of or damage to Covered Property In any one occurrence, only the largest shall be applied. if Loss of Revenue Coverage is provided under this Policy, the Waiting Period stated above will always be applied In addition to any dollar deductible stated for physical damage. ADDITIONAL ENDORSEMENTS ENDORSEMENT NAME FILL-IN INFO F X J Schedule of Covered Property, U-CWP-0010-A Per Addendum A X Cyber Exclusion, U-CWP-0117-A - CANCELLATION PROVISION 60 Days except 10 Days for nonpayment of premium VALUATION (1) Covered Property: The actual cost to repair or replace the lost or damaged property, valued as of the time and place of loss, with material of like kind and quality, less betterment tf not so replaced, loss shall be settled on an Actual Cash Value basis with proper deduction for depredation and exclusive of profit and overhead. (2) Transit The Invoice cost plus accrued shipping charges less shippers liability, If any. (3) Loss of Revenue: Actual loss sustained subject to the stated coverage and specified Indemnity period. OTHER QUOTE CONSIDERATIONS (1) Zurich shall have the right to Inspect property and operations at any reasonable time. Insured agrees to comply with any reasonable Risk Engineering recommendations to avoid a loss. (2) ADDENDUM A —SCHEDULE OF COVERED PROPERTY provides a fisting of all property to be covered under this Indication and Policy. If a location Is not listed It is not included In the coverage provided herein. (3) Coverage is subject to obtaining facultative reinsurance: ® YES []NO (4) Coverage Is subject to satisfactory completlofl of Risk Englnerfng Recommendations COVERAGE IS NOT CONTEMPLATED UNLESS SPECIFICALLY ADDRESSED IN THE ABOVE INDICATION. 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: 02/17/2023 Prepared for City of Lubbock Confidential. © 2021 USI Insurance Services. All rights reserved. �' 25 Building Vacancy Provision - Coverage may be restricted or excluded for any Building found to be vacant for a minimum of 30 consecutive days or longer subject to all other policy terms and conditions. If any of your covered buildings meet this description at any time during the policy period, please contact us so we can assist you in maintaining appropriate coverage. Protective Safeguard Endorsement - Failure to maintain the protective safeguards in good working order or failure to notify the insurer of even a temporary impairment in protection suspends coverage until the protection is restored. Property Disclaimer: This policy insures against direct physical loss or damage to Real & Personal Property from a covered cause of loss and any resulting Loss of Revenue as more fully defined with the policy. It is your responsibility to notify LISI's personnel, in writing, if these limits are not adequate to rebuild and/or replace, in today's dollars, your current building and contents. "Replacement cost" does not mean replace at any cost. Terms & Conditions: Per Expiring Policy Form Extensions or Exclusions: Property excluded: aircraft, rolling stock, watercraft, land/land values, electrical/gas/water or other transmission line and related plants and substations; Offshore rigs & platforms, Property sold under conditional sale; Shipments by mail, parcel post and those shipments to and from Alaska or Hawaii; Overseas shipments and others per the policy. Consequential Loss: Error/Omission or deficiency in design, plans, workmanship, specifications or materials; Wear & Tear; War; Nuclear; Mysterious Disappearance & Inventory Shortage; Employee Dishonesty, Fraud & Infidelity; Fungus; Pollution & Contamination; Asbestos; Normal Subsidence & Settling; and other per the Policy. The following locations and I or structures are covered under this Policy: LOCATION / LOCATION / STRUCTURE NAME SCHEDULED PHYSICAL SCHEDULED LOSS STRUCTURE DAMAGE LIMIT OF REVENUE LIMIT NUMBER 1 JOHN T. MONTFORD DAM $80,600,000 NCP 3099 LAKE ALAN HENRY RD JUSTICEBURG TX 79330 !'NO COVERAGE IS PROVIDED FOR THE EMERGENCY SPILLWAY- NCP TOTAL SCHEDULED VALUES I $W'W0,000 NCP Excluded coverage or other coverages sought may be available: please discuss with USI Other exclusions and polity limitations may apply. Please refer to the actual policies for specific terms, conditions, limitations, exclusions and sublimity 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: 02/17/2023 Prepared for City of Lubbock W.126 Confidential. © 2021 USI Insurance Services. All rights reserved. ZUrich Risk Engineering LIfIbLindled Fee Service Proposal The following services are offered to conjunction with the Zurich Construction Insurance Program Proposal dated 02/17/2023 The costs for these services are outlined In the Zurich Construction Insurance Proposal Z U R I C H • •Addibonai sales tax vA be applied at ^•^ ing for work pefom ed in Texas (825D%I, west Virginia (7%' and South Dakota (6.5%) Estimated Subtotal Cost $10,000 Taxable Service in Texas(8.25% Tax) $10,000 $a25 Estimated Total Cost $10,825 Service ftrhW` 04/01/2023 - 04101/2024 Service Strategy Quantity Descripdon Risk Engineering Point of Contact Included A dedicated Risk Engineering point of contact assigned upon binding to assist with your service needs. If trends are identified during the mid-term loss analysis, Risk Engineer will discuss potential loss -reduction Loss Monitoring Included strategies with the company contact. Risk Insights Included Provides access to industry -specific Construction Risk Insights_ Provides access to Zurich's industry -specific courses, designed to equip contractors with the skills to manage Zurich Seminars and Webinars Included risk. Subjects range from risk awareness and operational skills development to strategic risk management training - Zurich's Contractor's Safety Calendar eTools Included i Highway Worker Safety Program (HWSP) Soft Tissue Injury Prevention Program (STIPP) ClickSafety® (Online safety training) SambaSafetyWriver risk management - MVR and CSA monitoring, driver risk analysis Strategic Vendor Partner Access Included SafetySource® (Safety Training Online/Videos on Demand/Leammg Management System) Sarnsara® (Real -Time Fleet Telematics) This proposal does not replace any state -mandated service requirements Please contact your dedicated Risk State -Mandated Service Requirements Included Engineering point of contact if you have questions. 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: 02/17/2023 Prepared for City of Lubbock Confidential. (iz'• 2021 USI Insurance Services. All rights reserved. 7 EngineeringZurich Risk Unbundled Fee Service Proposal The following services are offered in conjunction with the Zurich Construction Insurance Program Proposal dated 02/17/2023 The costs for these services are outlined in the Zurich Construction Insurance Proposal Z U R I C H • •Additional sales tax will be applied at in for work performed in Texas (8.250%', West lragwa (7%) and South Dakota (6 5%) Estimated Subtotal Cost $10,000 Tanmbie siendw ME Texas (8.25% Tax) $10,000 $825 Estimated Total Cost $10,825 atePeriod: 04/01/2023 - 04/01/2024 Service strategy Quantity pesai�i�rt Comirui:zion Property Site visit to a insured klcation where Zurich RE will identify and assess hazards, exposures and controls Property I relevant to the contractors property. Includes loss mitigation resources and risk improvement Site Risk Assessment recommendations. O 2022 The Zurich Services Corporation AI rights reserved. This . intended as a general descrtpton of certain types of insurance and services available to qualified customers through the companies of Zundn : n North America, provided solely for infonmabonal purposes. Nothing herein should be construed as a solicitation, offer, advice, recommendation, or any other service with regard to any type of insurance product urdenvritten by individual member companies of Zurich in North America, including Zurich American insurance Company, 1299 Zurich Way, Schaumburg, Wmots 60196- 1056 Your policy s the contract that specifically and fully describes your coverage, terms and conditions. The description of the policy Disdaima, provisions gees a broad overview of coverages and does not revise or amend the policy Coverages and rates are subject to individual insured meeting our underwriting qualifications and product availability, in applicable states same coverages maybe wntten on a nor, admitted bass through licensed siupha lines brokers. Risk engineering services are provided by The Zurich Services Corporation. Zunch does not guarantee any particular outcome or reduction in costs and there may be conditions on you premises or within your orgy izaton, which may not be apparent to us. You are n the best position to understand your business and your organuxabon and to take steps to minmmze risk, and we wish to assist you by providing the information and tads to help you assess your changing risk Revision lime 2& 2022 -Additional Fisk Engineering Services are available on a fee-furm -sece bass plus applicable travel costs. Please contact your dedicated Risk Engineering point of contact for information. 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: 2023 Prepared for City Lubbock Confidential. ic 2021 2021 Us[ Insurance Services. A All rights reserved. Insured Name: JOHN T. MONTFORD DAM CITY OF LUBBOCK TX Policy Number. Effective Date: 04/0112023 ZURICH THIS DISCLOSURE IS ATTACHED TO AND MADE PART OF YOUR POLICY. DISCLOSURE OF IMPORTANT INFORMATION RELATING TO TERRORISM RISK INSURANCE ACT SCHEDULE' Premium attributable to risk of loss from certified acts of terrorism for lines of insurance subject to TRIA: $9.792 `Any information required to complete this Schedule, If not shown above. will be shown in the Declarations. A. Disclosure of Premium In accordance with the federal Terrorism Risk Insurance Act ("TRIA"), as amended, we are required to provide you with a notice disclosing the portion of your premium, If any, attributable to the risk of loss from terrorist acts certified under that Act for lines subject to TRIA. That portion of premium attributable is shown In the Schedule above. The premium shown In the Schedule above Is subject to adjustment upon premium audit, If applicable. B. Disclosure of Federal Participation in Payment of Terrorism Losses The United States Government may pay a share of insured losses resulting from an act of terrorism. The federal share will decrease by 50A from 85% to 80% over a five year period while the insurer share Increases by the same amount during the same period. The schedule below illustrates the decrease in the federal share: Januaryl, 2015 — December 31, 2015 federal share: 85% Januaryl, 2016 — December 31, 2016 federal share: 84% Januaryl, 2017 — December 31, 2017 federal share: 83% Januaryl. 2018 — December 31, 2018 federal share: 82% Januaryl, 2019 — December 31, 2019 federal share: 81 % Januaryl, 2020 — December 31, 2020 federal share: 80% C. Disclosure of $100 Billion Cap on All Insurer and Federal Obligations If aggregate Insured losses attributable to terrorist acts certified under TRIA exceed $100 billion in a calendar year (January 1 through December 31) and an insurer has met Its deductible under the program, that insurer shall not be liable for the payment of any portion of the amount of such losses that exceeds $100 billion, and In such case insured losses up to that amount are subject to pro rata allocation In accordance with procedures established by the Secretary of Treasury. Civil Works - Proposal JOHN T. MONTFORD DAM; CITY OF LUBBOCK 2023-2024 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: 02/Prepared for City of Lubbock Confidential. ©2021 21 LIST USI Insurance Services. All rights reserved. D. Avallablilty As required by TRIA, we have made available to you for lines subject to TRIA coverage for losses resulting from acts of terrorism certified under TRIA with terms, amounts and limitations that do not differ materially from those for losses arising from events other than acts of terrorism. E. Definition of Act of Terrorism under TRIA TRIA defines "act of terrorism" as any act that is certified by the Secretary of the Treasury, in accordance with the provisions of the federal Terrorism Risk Insurance Act ("TRIA'), to be an act of terrorism. The Terrorism Risk Insurance Act provides that the Secretary of Treasury shall certify an act of terrorism: 1. To be an act of terrorism; 2. To be a violent act or an act that is dangerous to human life, property or infrastructure; 3. To have resulted in damage within the United States, or outside of the United States in the case of an air carrier (as defined in section 40102 of Title 49, United States Code) or a United States flag vessel (or a vessel based principally in the United States, on which United States Income tax Is paid and whose Insurance coverage is subject to regulation in the United States), or the premises of a United States mission, and 4. To have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. No act may be certified as an act of terrorism If the act Is committed as part of the course of a war declared by Congress (except for workers' compensation) or if losses resulting from the act, in the aggregate for Insurance subject to TRIA, do not exceed $5,000,000. U-GU-630-D CW (01115) CW Works - Proposal JOHN T. MONTFORD DAM; CITY OF LUBBOCK 2023-2024 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: 02/17/2023 Prepared for City of Lubbock Confidential. © 2021 USI Insurance Services. All rights reserved. EMO