HomeMy WebLinkAboutResolution - 2019-R0296 - Zurich American - Property Insurance - 08/27/2019 Resolution No. 2019-RO296
Item No. 6.22
August 27, 2019
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$167,934.00; 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 ALtglist 27 2019
DANIEL M. POPE, MAYOR
ATTEST:
Re V
ca Garza, City Tecren
APPR VED AS TO CONTENT:
.J
"M tcheson, Director of Human Resources
and Risk Management
APPROVED AS TO FORM:
/�'.dx�11-0-1'f
H t ell, Del5uty City Attorney
vw/ccdocs/Res.Risk Mgmt-Zurich American Ins.
August 13,2019
Resolution No. 2019-RO296
John T. Montford Dam Property
Insurance Company: Zurich American Insurance Company
Policy Term: 10/1/2019 to 10/1/2020
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: $167,934.00
Subject of Insurance Limit
Policy Limit of Liability For Any Occurrence For any one occurrence,subject
to the following sublimits and annual aggregate. In no event shall this
policy's liability exceed the Limit of Liability or the scheduled values, $50,000,000
whichever is less,in anyone occurrence.
Physical Damage Coverage to the Covered Property $50,000,900
Loss of Revenue NCP
Accounts Receivable $50,000
Interruption by Civil or Military Authority 14 Days
Expediting Expense $500,000
Extra Expense $500,000
Debris Removal $5,000,000(or 25%)
Fire Department Service Charge $100,000
Ingress/Egress 14 Days
Loss Adjustment Expense $100,000
Newly Acquired Locations $500,000
Ordinance or Law/Demolition or Increased Cost of Construction $1,000,000
Transit-Any One Conveyance $2,500,000
Valuable Papers&Records $25,000
Terrorism $50,000,000,
Annual Aggregate—Earthquake $10,000,000
Annual Aggregate—Flood $10,000,000
Annual Aggregate—Named Storm $10,000,000
Deductibles
Physical Loss of or Damage to Covered Property;unless $2,000,000
Physical Loss of or Damage to Surveillance Equipment $25,000
As Respects to Earthquake $2,000,000
As Respects to Flood $2,000,000
As Respects to Named Storm $2,000,000
Loss of Revenue NCP Days—Waiting Period
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Endorsements,Key
limited to,the following:
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.
Valuation: 1)Covered Property—Cost to repair or replace with like kind or quality,at time of loss.
If not replaced,ACV with deduction for depreciation and exclusive of profit&overhead
2)Transit—Invoice cost plus accrued shipping charges less shippers liability, if any.
3)Loss of Revenue—Actual Loss Sustained subject to stated coverage and specified
indemnity period.
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 UST'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.
Property Damage Total Insured Value(TIV): $186,756,846
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.
"Subject to$45,000 Minimum Earned Premium
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THIS DISCLOSURE DOES NOT GRANT ANY COVERAGE OR CHANGE THE TERMS AND
CONDITIONS OF ANY COVERAGE UNDER ANY POLICY.
DISCLOSURE OF IMPORTANT INFORMATION
RELATING TO TERRORISM RISK INSURANCE ACT
SCHEDULE*
Premium attributable to nsk of loss from certified acts of terrorism for lines of insurance subjccl to TRIA:
S[ENTER TRIA SSI Applicable to Operulional Civil Worcs Policy
*Any information required to complete this Schedule,if not shown above,will be shown to the quote or proposal.
A. Dlsclosureorrremium
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 rayment of Terrorism[asses
The United States Government may pay a share of insured kisses resulting from an act of terrorism. The federal share equals 85°-
of that portion of the amount of such insured losses that exceeds the insurer retention. The insurer retention equals 20"0 of the
insurees prior calendar year direct earned premium assmiated with lines of insurance subject to TRIA. TRIA is scheduled to expire
on December 31,2014.
C. Disclosure of$100 Billion Cap on All Insurer and Federal Obligations
If aggregate insured losses attributable to terrorist acts certified under TRIA exceed S100 billion in a Program Year(January 1
through DecembeT 31)and an insurer has met its deductible under the program,that insurer shall not ba liable for the payment of
any portion of the amount of such losses that exceeds S100 billion.and in such case insured losses up to that amount aro subject to
pro rata allocation to accordance with procedures established by the Secretary of Treasury.
D. AvallablHty
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 difier materially from those for losses arising from events
other than acts of terrorism.
E. Definition of Act ofTcrrorlsm under TRIA
TRIA defines"act of terrorism'as any act that is certified by the Smretaryof[lie Treasury,in concurrence with the Secretary of
State and the Attorney General of the United States:
I. 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 Slates.or outside of the United Stales in the case of an air carrier(as defined
in section 40102 of Title 49.United Slates Code)or a United States flag vessel(or a vessel based principally in the United
Slates.on which United States income tax is paid and whose insurance cotemge is subject to regulation in the United
Slates),or the premises of 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 texcept
for workers' comperimnon) or if tosses resulting from the act. in the aggregate for insurance subiect to TRIA, du not exceed
55,000.000.
John T Wntford Dam-Proposal 2019-2020.dacm
Copyright t'2007 Zurich Amcncan Insuruner Company U-G11-632-C(12 07)
Includes copyrighted material of ISO Properiim Inc with its pcmussuui
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