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