HomeMy WebLinkAboutResolution - 2020-R0293 - Montford Dam Insurance PolicyResolution No. 2020-RO293
Item No. 7.11
September 8, 2020
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 $141,749.00; 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 September 8, 2020
DANIEL M. POPE, MAYOR
AT"' 'ST:
Reb •a arza, ity Secretary
APPROVED AS TO CONTENT:
APPROVED AS TO FORM:
Jeff-flartsell, Deputy City Attorney
vw/cedocs/Res. Risk Mgmt-Zurich American Ins.
August 25, 2020
John T. Montford Dam Property
Insurance Company:
Zurich American Insurance Company
Policy Term:
10/1/2020 to 10/1/2021
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:
$141,749.00
POLICY LIMIT OF LIABILITY
This Policy shall pay no more than $50,000,000 for any one occurrence, subject to the following Sublimfts of Liability an(
Annual Aggregate Limits of Liability. In no event shall this Policy's liability exceed the Limit of Liability above or IN
scheduled values as stated on Endorsement A — Schedule of Locations & Values Insured, whichever is less, in any om
occurrence.
SUBLIMITS OF LIABILITY
The Policy shall pay no more than the following Sublimit(s) of Liability in any one occurrence.
NOTE: Coverage shall only apply for Individual sublimits when a dollar amount Is entered below: In no event shal
these Sublimits of Liability increase the Policy Limit of Liability.
(1)
$
50,000,000
Physical Damage Coverage to the Covered Property;
(2)
$
NCP
Loss of Revenue;
(3)
$
50,000
Accounts Receivable;
(4)
NCP
Interruption by Civil or Military Authority;
(5)
$
500,000
Expediting Expense;
(6)
$
500,000
Extra Expense;
(7)
$
5,000,000
Or 25% 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;
01)
$
500,000
Newly Acquired Locations;
(12)
$
1,000,000
Ordinance or Law / Demolition or Increased Cost of Construction;
(13)
$
2,600,000
Transit - any one conveyance;
(14)
$
25,000
Valuable Papers & Records;
(15)
$
50,000,000
Terrorism
ANNUAL AGGREGATE LIMIT(S) 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
USI
DEDUCTIBLES AND WAITING PERIOD(S)
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
staled 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 IF ANY
X
I Schedule of Covered Property, U-CWP-0010-A
Per Addendum A
%
I C ber 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. If not so replaced, loss shall be settled on an Actual Cash
Value basis with proper deduction for depreciation and exclusive of profit and overhead.
(2) Transit: The invoice cost plus accrued shipping charges less shipper's 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 listing 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
COVERAGE IS NOT CONTEMPLATED UNLESS SPECIFICALLY ADDRESSED IN THE ABOVE INDICATION.
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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 USI'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 / or structures are covered under this Policy:
LOCATION I
LOCATION I STRUCTURE NAME
SCHEDULED PHYSICAL
SCHEDULED LOSS
STRUCTURE
DAMAGE LIMIT
OF REVENUE LIMIT
NUMBER
t
JOHN T. MONTFORD DAM
$80,600.000
NCP
3099 LAKE ALAN HENRY RD
JUSTICEBURG. TX 79330
TOTAL SCHEDULED VALUES I $60 600 000 INCP
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 risk of loss from certified acts of terrorism for lines of insurance subject to TRIA:
S7.157 - Applicable to Operational Civil Works Policy
*Any information required to complete this Schedule, if not shown above, will be shown in the quote or proposal.
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 Particlpalioo 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 equals 85%
of that portion of the amount of such insured losses that exceeds the insurer retention. The insurer retention equals 20% of the
insurer's prior calendar year direct earned premium associated 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 S 100 billion in a Program Year (January I
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 SI00 billion, and in such case insured losses up to that amount arc subject to
pro rats allocation in accordance with pmccdures established by the Secretary of Treasury.
D. Availability
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 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 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 Bag 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
Stiles). or the premises of a United Slates 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 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.
Civil Works - Proposal JOHN T. MONTFORD DAM; CITY OF LUBBOCK 2020-2021
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