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HomeMy WebLinkAboutResolution - 2013-R0292 - Purchase - Excess Liability Insurance - Onebeacon Insurance - 09/10/2013Resolution No. 2013-RO292 ;September 10, 2013 'Item No. 5.25 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK- THAT the City Manager of the City of Lubbock BE and is hereby authorized and directed to purchase for and on behalf of the City of Lubbock, excess liability insurance coverage from OneBeacon Insurance, for a premium amount not to exceed $308,584 or the amount adjusted due to changes in the premiums required as a result of the annual audit; and THAT the City Manager may execute any routine documents and forms associated with said insurance coverage. Passed by the City Council this September 10, 2013 GL C. R ERTSON, MAYOR F. -Val W11 9 Reb cca Garza, City Secret APPROVED AS TO CONTENT: Leisa Hutcheson, Director of Human Resources and Risk Management APPROVED AS TO FORM: Chad Weaver, Assistant City Attorney RES.Risk Mgmt-OneBeacon Ins Co August 26, 2013 Resolution No. 2013—RO292 Wells Fargo Insurance Services Casualty Package - Commercial General Liability Insurance Carrier: One Beacon Insurance Company Carrier Rating: A XI as of October 19, 2012 per AM Best Policy Term: 10/01/2013 to 10/01/2014 Coverage: Your legal liability to members of the public for claims arising from your premises, operations, products, or completed operations Admitted/ Non- Admitted admitted: Policy Form: ®Occurrence ❑Claims Made Limits of Liability: $ 1,000,00o General Aggregate Limit (other than prod/comp operations) $ l,000,000 Products/Completed Operations Aggregate Limit $ l,000,000 Personal & Advertising Injury Limit $ 1,000,00o Each Occurrence Limit $ l,000,000 Damage to Premises Rented To You (any one premises) $ Health Care & Social Services (for Nurses, EMT and First 1,000,000 Responders) — Each Wrongful Act $ Not Covered Medical Payments Any One Person $ l,000,000 Cemetery $ l,000,000 Failure to Supply $ l,000,000 Sexual Abuse Self Insured $ 500,000 — Each Occurrence Retention: 500,000 — Personal & Advertising Injury — Each Offense 500,000 — Health Care and Social Services — Each Wrongful Act This Coverage Summary neither amends nor alters the insurance contract. Specific questions on all policy terms and conditions should be referred to your wells Fargo Insurance representative, and the policy itself should be reviewed. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions Proposal date: 7/11/2013 Prepared for City of Lubbock c/o Risk Management Dept. Confidential. 'e, 2013 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. PAGE 13 Wells Fargo Insurance Services Commercial Automobile Carrier: One Beacon Insurance Carrier Rating: A XI as of October 19, 2012 per AM Best Policy Term: 10/01/2013 — 10/01/2014 Coverage Autos Covered Limits of Liability Liability Insurance Any Auto $1,000,00o Combined Single Limit Medical Payments All Owned Autos $5,00o Each Person Uninsured/Underinsursed $1,000,00o Combined Single Limit Motorists Hired & Non -Owned Auto If any Basis Liability This Coverage Summary neither amends nor alters the insurance contract. Specific questions on all policy terms and conditions should be referred to your Wells Fargo Insurance representative, and the policy itself should be reviewed. Please refer to the policy contract fur specific terms, conditions, limitations, and exclusions Proposal date: 7/11/2013 Prepared for City of Lubbock c/o Risk Management Dept. Confidential. I % 2013 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. PAGE 14 Wells Fargo Insurance Services Commercial Automobile - Description Of Covered Auto Symbols Sumbol Description 1. Any Auto. 2. Owned Auto Only. Only those autos you own (and for Liability Coverage, any trailers you don't own while attached to power units you own). This includes those autos you acquire ownership of after the policy begins. 3. Owned Private Passenger Autos Only. Only the private passenger autos you own. This includes those private passenger autos you acquire ownership of after the policy begins. 4. Owned Autos Other Than Private Passenger Autos Only. Only those autos you own that are not of the private passenger type (and for Liability Coverage, any trailers you don't own while attached to power units you own). This includes those autos not of the private passenger type you acquire ownership of after the policy begins. 5. Owned Autos Subject To No -Fault. Only those autos you own that are required to have No -Fault benefits in the state where they are licensed or principally garaged. This includes those autos you acquire ownership of after the policy begins, provided they are required to have No -Fault benefits in the state where they are licensed or principally garaged. 6. Owned Autos Subject To A Compulsory Uninsured Motorist Law. Only those autos you own that, because of the law in the state where they are licensed or principally garaged, are required to have and cannot reject Uninsured Motorist Coverage. This includes those autos you acquire ownership of after the policy begins provided they are subject to the same state uninsured motorist requirement. 7. Specifically Described Autos. Only those autos described in Item Three of the Declarations for which a premium charge is shown (and for Liability Coverage, any trailers you don't own while attached to any power units described in Item Three). 8. Hired Autos Only. Only those autos you lease, hire, rent or borrow. This does not include any auto you lease, hire, rent, or borrow from any of your employees or partners or members of their households. 9. Nonowned Autos Only. Only those autos you do not own, lease, hire, or borrow that are used in connection with your business. This includes autos owned by your employees or partners or members of their households but only while used in your business or your personal affairs. This Coverage Summary neither amends nor alters the insurance contract. Specific questions on all policy terms and conditions should be referred to your Wells Fargo insurance representative, and the policy itself should be reviewed. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions Proposal date: 7/11/2013 Prepared for City of Lubbock c/o Risk Management Dept. Confidential.,'t, 2013 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. PAGE 15 Wells Fargo Insurance Services Law Enforcement Liability Insurance Carrier: One Beacon Insurance Company Carrier Rating: A XI as of October 19, 2012 per AM Best Policy Term: 10/01/2013 to 10/01/2014 Limits of Liability: $ l,000,000 Each Law Enforcement Wrongful Act $ 1,000,000 Aggregate Self Insured $ 500,000 Retention: Public Officials Errors & Omissions Insurance Carrier: One Beacon Insurance Company Carrier Rating: A XI as of October 19, 2012 per AM Best Policy Term: 10/01/2013 to 10/01/2014 Limits of Liability: $ l,000,000 Public Officials Errors & Omissions $ 1,000,000 Aggregate $ l,000,000 Public Officials Employment Practices $ 1,000,000 Aggregate $ l,000,000 Public Officials Employee Benefits $ l,000,000 Aggregate Self Insured $ 500,000 Retention: Retro Date: 09/10/1999 This Coverage Summary neither amends nor alters the insurance contract. Specific questions on all policy terms and conditions should be referred to your Wells Fargo insurance representative, and the policy itself should be reviewed. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions Proposal date: 7/11/2013 Prepared for City of Lubbock c/o Risk Management Dept. Confidential. c 2013 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. PAGE 16 Wells Fargo Insurance Services Commercial Umbrella / Excess Liability Insurance Carrier: One Beacon Insurance Carrier Rating: A XI as of October 19, 2012 per AM Best Policy Term: 10/01/2013 to 10/01/2014 Coverage: Your legal liability to members of the public or employees arising from your premises, operations, Aggregate : $18,000,000 products, completed operations, auto liability or Each Claim: $9,000,000 employers liability ❑Umbrella ®Excess Liability Current Retroactive Date o9/0l/1999 Underlying Insurance Type of Insurance Eff Date Exp Date Limit Auto Liability 10/01/2013 10/01/2014 $i,000,000 Each Occurrence Limit Auto Liability 10/01/2013 10/01/2014 $1,000,00o Bodily Injury - Each Occurrence Bodily Injury - Each Accident Property Damage - Each Accident General Liability 10/01/2013 10/01/2014 $l,000,000 Each Occurrence Occurrence $l,000,000 General Aggregate $1,000,00o Products & Completed Operations Aggregate $l,000,000 Personal and Advertising Injury $1,000,00o Damage to Rented Prem Ea Occ. Not Covered Medical Expense (any one person) Underlying Insurance Coverage Information true Errors and Omissions true This Coverage Summary neither amends nor alters the insurance contract. Specific questions vn all p, licy terms and conditions should be referred to your Wells Fargo Insurance representative, and the policy itself should be reviewed. Please refer to the policy contract f r specific terms, conditions, limitations, and exclusions Proposal date: V11+2013 Prepared for City of Lubbock c o Risk Management Dept. Confidential..0 2013 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. PAGE 17 Wells Fargo Insurance Services Coverages to Consider In evaluating your exposures to loss, we have been dependent upon information provided by you. If there are other areas that need to be evaluated prior to binding of coverage, please bring these areas to our attention. Specifically, we ask that you review the following items: Higher Limits: In today's litigious society, many businesses have found it necessary to increase the limits of liability to ensure they are adequate to protect their assets in the event of a loss. Higher limits of liability may be available. Please carefully review the limits to ensure your level of comfort with the limits. Employment Practices The relationship between the employer and employee has become Liability: increasingly complex, and this has given rise to new insurance coverages to protect the employer. These coverages include wrongful termination, sexual harassment, and other coverages. It is important that you understand your exposures to loss in these critical areas. Building Ordinance: Provides coverage in the event there are building codes that mandate you to demolish remaining undamaged portions of the structure after partial damage. Coverage for increased cost of construction would also be included. Building codes have become more stringent as a result of City, State or Federal ordinances or laws (Americans With Disabilities Act {ADA}). An optional quote can be provided, and coverage should be considered. Business Interruption: Protection against loss of earnings of a business during the time required This Coverage Summary neither amends nor alters the insurance contract. Specific questions on all policy terms and c:mditions should be referred to y -,u r Wells Fargo Insuran:c representative, and the policy itself should be reviewed. Please refer to the polity contract for specific terms, conditions, limitations, and exrlusions Proposal date: 7,+12/2023 Prepared for City of Lubbock c,,, o Risk Management Dept - Confidential. '& ept.Confidential.'& 2013 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. PAGE 30 to rebuild or repair property damaged or destroyed by an insured peril. Extra Expense: Coverage for those expenses over and above normal operating expenses incurred to continue the insured's operations in the event of direct physical loss to property. Contingent Business Protection against loss of earnings during the time required to rebuild or Interruption: repair property damaged or destroyed by an insured peril at a supplier's location or other key location which your operations are dependent upon. Kidnap, Ransom & This provides coverage for kidnappings and other events through a Extortion Including combination of financial indemnification and expert crisis management. Dependent Child A basic policy can cover items such as ransom payment, loss of income, Coverage: interest on bank loans, etc. This insurance provides assistance to the family and business with regard to independent investigations, negotiations, arrangement and delivery of funds. Directors & Officers This coverage agreement provides protection for the directors and/or Liability: officers of the insured corporation against claims resulting from alleged breach of duty, negligence, error or omission while acting in their capacities as directors and/or officers. This Coverage Summary neither amends nor alters the insurance contract. Specific questions on all policy terms and c:mditions should be referred to y -,u r Wells Fargo Insuran:c representative, and the policy itself should be reviewed. Please refer to the polity contract for specific terms, conditions, limitations, and exrlusions Proposal date: 7,+12/2023 Prepared for City of Lubbock c,,, o Risk Management Dept - Confidential. '& ept.Confidential.'& 2013 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. PAGE 30 Wells Fargo Insurance Services Coverages to Consider (Cont.) Cyber Liability/Network Inadvertent transmission of a computer virus, trojan horse, keylogger, Security: etc. Sending an email that crashes another party's network. Failure to prevent unauthorized access to computer systems by a third party or an unauthorized employee Disclosure of or misuse of confidential information Allegations of infringement of copyright, trademark, trade name, title, or slogan Allegations of defamation as a result of emails, web content, blog or forum postings Privacy Liability: covers liability of the company arising out of the unintentional and unauthorized disclosure or loss of non-public personal information or confidential corporation information in any format. This provides protection against a violation of any privacy regulations including the HITECH Act, HIPAA, GLBA and Massachusetts 201 CMR 17 or the failure to comply with the company's own privacy policies. Internet Liability: Damages arising when your internet service provider goes down or is hacked. Web Content Liability: Damages and defense costs arising from claims of libel, copyright or trademark infringement, or defamation; damages to a website by a hacker or disgruntled employee Electronic Communications: Damages and defense costs arising as a result of electronic communications, such as breach of confidence or infringement of any right to privacy, intellectual property rights or any statutory duty (Example: some states now require notification to those affected by a loss of private information and provision of credit monitoring services at your cost). Intangible Assets: Damages to code, data, etc. Network Extortion Threat and Reward Payments: Reimburses the company for any extortion expense, and reward paid by the company as a direct result of network extortion threat. Environmental Pollution: Increasing regulations and environmental disasters have prompted companies to consider purchasing pollution insurance coverage. However, the coverage that exists in today's insurance marketplace can be limited, costly, and written by only a few insurers. Many companies elect not to purchase the coverage that exists. These companies incorporate techniques which prevent and reduce losses. We understand that City of Lubbock c/o Risk Management Dept. commits substantial resources to controlling and monitoring pollutants. City of Lubbock c/o Risk Management Dept. should be aware, however, that pollution claims may still arise out of activities even if City of Lubbock c/o Risk Management Dept. complies with the current environmental standards. We suggest that City of Lubbock c/o Risk Management Dept. continue incorporating procedures which prevent future pollution episodes. In addition, we can obtain quotations for insurance, if desired. This Coverage Summary neither amends nor alters the insurance contract. Specific questions on all polity terms and conditions should be referred to your Wells Fargo Insurance representative, and the policy itself should be reviewed. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions Proposal date: 7/1112013 Prepared for City of Lubbock c/o Risk Management Dept. Confidential. •.91 2013 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. PAGE 31 Wells Fargo Insurance Services Coverages to Consider (Cont.) Crime: Covers moneys, securities or property belonging to you or for which you are legally liable. In the event of a loss, the burden of proof rests with you. The policy does not cover inventory losses based on an inventory computation. Employee Dishonesty: Insures against loss resulting from the dishonest acts of your employees. You must prove the loss was caused by the dishonest act of one or more employees. Forgery or Alteration: Insures against loss caused by forged or altered checks or other financial instruments. Robbery and Safe Burglary: Provides protection in the event of loss of stock or property (other than money and securities) in which you or your employees are forced to relinquish goods, or where a safe is burglarized. Computer Fraud: Insures against theft of money, securities or property by using a computer to transfer property from your premises or bank to another person or place. Fiduciary: The Employee Retirement Income Security Act of 1974 imposes personal liability on Fiduciaries of employee welfare plans for acts of mismanagement or errors in judgment. This policy will pay on your behalf all sums you become legally obligated to pay as a result of any Wrongful Act. Wrongful Act means a breach of fiduciary duty, including negligence, by you in the discharge of duties as respects Trusts or Employee Benefit Plans. Foreign package Policy: Provides coverage for occurrences and suits brought in foreign countries. Whereas, most domestic policies only cover suits brought in the U.S. Provides Foreign GL, Auto, Voluntary Workers' Compensation and Employers Liability, Travel Accident and Sickness. Foreign Workers' Compensation provides coverage for endemic disease such as Malaria or Avian Flu. Emergencies while traveling, such as security evacuation. Electronic Data Coverage insures against loss or damage to electronic data processing Processing Equipment equipment and the media and data owned, leased or used by the insured. Coverage: Computerized production equipment may also be insured in addition to conventional computer equipment. Coverage may or may not include breakdown and power interruption and can provide Loss of Income coverage as well as Extra Expense coverage. This Coverage Summary neither amends nor alters the insurance contract. Specific questions on all policy terms and conditions should be referred to your Wells Fargo Insurance representative, and the policy itself should be reviewed. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions Proposal date: 7111/2013 Prepared for City of Lubbock c/o Risk Management Dept, Confidential. C) 2013 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. PAGE 32