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HomeMy WebLinkAboutResolution - 2020-R0300 - Inland Marine Insurance, Pipeline Liability Insurance, Crime Insurance, and Drone - Hull Liability InsuranceResolution No. 2020-RO300 Item No. 7.18 September 8, 2020 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Manager of the City of Lubbock is hereby authorized and directed to purchase for and on behalf of the City of Lubbock, inland marine insurance coverage from Travelers Lloyd's Insurance Company, for which the premium amount shall not exceed $16,658.00; pipeline liability insurance coverage from Federal Insurance Company, for which the premium amount shall not exceed $5,150; crime insurance coverage from Travelers Casualty & Surety Company of America, for which the premium amount shall not exceed $6,968; and drones hull and liability coverage from Global Aerospace, Inc., for which the premium shall not exceed $3,156; and THAT the City Manager may execute any routine documents and forms associated wi said insurance coverage. Passed by the City Council on AW EST: Garza, City S APPROVED AS TO CONTENT: September 8, 2020 DANIEL M. POPE, _ AYOR V D. u Kostelich, Chief tnancial Officer APPROVED AS TO FORM: WY117fe5e/ Je artll, Deputy C' ormey vw:ccdocs/RES.Risk Mgmt-Travelers Lloyds Ins. August 25, 2020 Inland Marine Insurance Company: Travelers Lloyd's Insurance Company Policy Term: 10/01/2020 to 10/01/2021 Coverage: Inland Marine provides coverage to mobile or specialized types of property such as construction equipment, medical diagnostic equipment, fine arts and a wide variety of other types of property. Annual Premium: $16,658.00 Communications Coverage CM T2 45 Communications Coverage Form Transmitting Or Receiving Equipment At A Premises Covered Property consists of the following when Indicated by an `X' below. [ ] Scheduled Equipment: [ ] As shown on the Transmitting Or Receiving Equipment Schedule [ j As shown on the most current schedule on file with us. The amount shown for each Item of equipment on the applicable schedule Is the Limit Of Insurance applying to that Item of equipment. Total Limit Of Insurance For All Scheduled Transmitting Or Receiving Equipment: [X] Unscheduled Equipment: Total Limit Of insurance For All Unlisted Equipment: $715,423 Limit Of Insurance For Any One Unlisted Equipment Item' $6,000 Limit Of Insurance For Any One Location, $690,000 Description Of Location Or Unlisted Equipment: Scheduled equipment at Silent Wings Museum and Buddy Holly Center. Unscheduled equip from Tarpley Media Systems. Total Umlt Of Insurance For All Scheduled And Unscheduled Transmitting Or Receiving Equipment: $715,423 usi I Mobile Or Portable Transmitting Or Receiving Equipment Covered Property consists of the following when Indicated by an 'X' below: [ ] Scheduled Mobile Or Portable Equipment: [ ] As shown on the Mobile Or Portable Equipment Schedule. [ ] As shown on the most current schedule on file with us. The amount shown for each Item of mobile or portable equipment on the applicable schedule is the Limit Of Insurance applying to that Item of mobile or portable equipment Total Limit Of Insurance For All Scheduled Mobile Or Portable Equipment: [X] Unscheduled Mobile Or Portable Equipment: Total Limit Of Insurance For All Unlisted Mobile Or Portable $716,423 Equipment. Limit Of Insurance For Any One Unlisted Mobile Or Portable $6,000 Equipment Item: Limit Of Insurance For Any One Location: $690,000 Description Of Location Or Unlisted Mobile Or Portable Equipment. Scheduled equipment at Silent Wings Museum and Buddy Holly Center. Unscheduled equip from Tarpley Media Systems Total Limit Of Insurance For All Scheduled And Unscheduled Mobile And Portable Equipment: $713,423 Total Limit Of Insurance For All Covered Property The most we will pay In any one occurrence for all Covered Property shown in this proposal $715,423 DEDUCTIBLE Deductible applying to all covered loss or damage unless a more specific Deductible for the covered loss or damage is shown In the Communications Deductible Schedule or elsewhere In this proposal $2, 500 VALUATION: Actual Cash Value OPTIONAL VALUATION applies when Indicated by an 'X' below: [ ] Replacement Cost Valuation Applies To All Covered Property [ ] Replacement Cost Valuation Applies to the Following Covered Property: COINSURANCE The following coinsurance applies when Indicated by an 'X': [ ] 100% [ ] 90% [ ] 80% [X] No Coinsurance Applies REPORTS AND PREMIUM: Minimum Earned Premium: Non -Reporting or Reporting applies as Indicated by an 'X' below. [XI Non -Reporting: [ ] Reporting: C None $7,154 Premium See Communications Reporting Endorsement Coverage Extensions Limit of Insurance 3 Expediting Expenses: $25,000 Fine Art: $50,000 Fire Protection Systems: $75,000 Newly Acquired Or Constructed Property $250,000 Personal Effects: $2,500 Tower Collapse Damage To Buildings That Are Not $25,000 Covered Property: Tuning Of Towers: $50,000 Valuable Papers And Records: $50.000 Additional Coverages Claim Data Expense: $5,000 Debris Removal Increased Limit: $25,000 Fire Or Police Department Service Charge. $25,000 Ordinance Or Law: $100,000 Pollutant Clean Up And Removal Annual $15,000 Aggregate: Preservation Of Property Expense- $25.000 Reward Coverage 25% of covered loss up to maxlmum of $2,500 Other Terms and Conditions CM U5 76 — Electronic Vandallsm Lim itatfon $10,000 Annual Aggregate CM U5 77 — Limited Coverage for Fungus, Wet Rot and Dry Rot $10,000 Fine Art — Museum CM T2 42 Museum Coverage Form Location Level Conditions, Coverage and Limits Location: 1 Building: 1 Address: Per schedule on file with us Lubbock, TX Description of Premises: Various locations owned or operated by you per schedule on file with Company. Coverage Limit of Insurance Annual Rate Property at your premises $5,590,400 $0.1700 Flood No Coverage Earth Movement No Coverage Location:3 Building:3 Address: Exhibits at your premises Description of Premises: Exhibits at your premises. O Cavern Limit Limit of Insurance Property at your premises $250,000 Flood No Coverage Earth Movement No Coverage Coverage Level Conditions, Coverage and Limits Property at any other location $500,000 Property In transit $250.000 Deductible: $2,500 Premium Total Annual $9,504 Minimum Earned None Valuation Current Market Value C Annual Rate $0.1700 Included Annual Premlum Included �LU*S-!Ml Additional Coverages Debris Removal Pollutant Cleanup and Removal Parcel Post and Registered Mall Expediting Expenses Inventory, Appralsals and Loss Adjustment Expenses Flre Department Service Charges Refilling of Fire Protective Devices U.S. Indemnity Deductible Coverage Currency Fluctuation Pairs and Sets Other Terms and Conditions CM T3 54 — Earth Movement Excluslon CM T3 56 — Flood Exclusion G Limit of Insurance Up to 25016 1 $25,000 Up to $25,000 Up to $1,000 per package $25.000 per occurrence Up to $25,000 Up to $10,000 Up to $5,000 Up to $5,000 Up to $400.000 Included Included USI CExcluded coverage may be available for an additional premium. Other exclusions and policy limitations may apply. Please refer to the actual policies for specific terms, conditions, limitations and exclusions that will govern in the event of a loss. PREMIUM SUMMARY Coverage Premium Minimum Earned Premium Communications $7,154 None Fine Art Museums $9,504 None Account Total $16,658 OTHER FORMS IL T3 82 Exclusion of Loss Due to Virus or Bacteria IL T4 12 Amendment Of Common Policy Conditions — Prohibited Coverage — Unlicensed Insurance And Trade Or Economic Sanctions IL T4 14 Cap On Losses From Certified Acts Of Terrorism Applicable endorsement and/or modifier relating to exclusion of certain computer related losses due to dates or times wail also apply. Terrorism Risk Insurance Act Disclosure The federal Terrorism Risk Insurance Act of 2002 as amended ( TRIA") establishes a program under which the Federal Government may partially reimburse "Insured Losses" (as defined In TRIA) caused by "Acts Of Terrorism' (as defined in TRIA). "Act Of Terrorism" Is defined In Section 102(1) of TRIA to mean any act that Is certified by the Secretary of the Treasury --- In consultation with the Secretary of Homeland Security and the Attorney General of the United States — to be an act of terrorism; to be a violent act or an act that Is dangerous to human life, property, or Infrastructure, to have resulted In damage within the United States, or outside the United States In the case of certain air carriers or vessels or the premises of a United States Mission; and 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 Govemment by coercion, The Federal Government's share of compensation for such Insured Losses Is established by TRIA and Is a percentage of the amount of such insured Losses in excess of each Insurer's "Insurer Deductible" (as defined In TRIA), subject to the Program Trigger" (as defined In TRIA) Through 2020, that percentage Is established by TRIA as follows. 850% with respect to such Insured Losses occurring In calendar year 2015. 840% with respect to such Insured Losses occurring In calendar year 2016 830% with respect to such Insured Losses occurring In calendar year 2017 820% with respect to such Insured Losses occurring In calendar year 2016. 81% with respect to such Insured tosses occurring in calendar year 2019. 80% with respect to such Insured Losses occurring in calendar year 2020. In no event however, will the Federal Government be required to pay any portion of the amount of such Insured Losses occurring In a calendar year that in the aggregate exceeds $100 Wilton. nor will any Insurer be required to pay any portion of such amount provided that such Insurer has met Its Insurer Deductible. Therefore, If such insured Losses occurring In a calendar year exceed $100 billion In the aggregate, the O amount of any payments by the Federal Government and any coverage provided by this policy for tosses caused by Acts Of Terrorism may be reduced. For each coverage provided by this policy that applies to such Insured Losses, the charge for such Insured Losses is Included In the premium for such coverage and is listed below. Such charges do not Include any charge for the portion of such Insured Losses covered by the Federal Government under TRIA. Coverage Included Charge For Insured Losses Commercial Inland Marine 1% of the Commercial Inland Marine Coverage premium. NO C Pipeline liability Insurance Company: Federal Insurance Company Policy Term: 10/1/2020 to 10/1/2021 Coverage: Provides coverage for claims arising from an insured's liability due to damage or injury to others during performance of their duties or business. The loss can be reported years later, but the key is when it happened. Annual Premium: $5,150.00 General Liability Coverage - Occurrence Limit Each Occurrence $1,000,000 General Aggregate Products and Completed Operations Aggregate Personal and Advertising Injury Damage to Rented Premises (Each Occurrence) Medical Expense Deductible —Bodily Injury & Property Damage Schedule of Exposures Pipeline - Over 4 outside Diameter Machinery Or Equipment -installation !,000,000 �,000,000 1,000,000 1,000,000 $10,000 $2,500 Additional Coverage: Non -Owned Aircraft (under 40 feet) Automatic Coverage for Newly Acquired Organizations (120 Days) Incidental Medical Malpractice Limited Worldwide Coverage Host Liquor Liability Operating Agents/Carried Interest/Non-Operating Working Interest Terrorism Provision Limitation to Designated Premises Project Designated Organization -- Power -Tex Pipeline Power -Tex Pipeline — Additional Insured USl Exclusions: Information Distribution Pollution Radioactive Material Architects, Engineering or Surveyors Professional Loss of Use of Electronic Date Asbestos Contamination Employment Related Practices Water Operations Underground Resources & Equipment Hazard Nuclear Energy Description Employee Related Practices Exclusion Exclusion - Asbestos Exclusion - Enhancement, Maintenance or Prevention Expenses Intellectual Property Laws or Rights Exclusion Exclude Nuclear Energy Exclude Total Pollution with A Hostile Fire Exception Recall of Products, Work or Impaired Property Exclude Workers' Compensation or Similar Laws (�✓j Terrorism Included Employees as Insureds Additional Insureds - Volunteers Additional Insured - Real Estate Managers or Lessors of Premises Excluded coverage may be available for an additional premium. Other exclusions and policy limitations may apply. Please refer to the actual policies for specific terms, conditions, limitations and exclusions that will govern in the event of a loss. N Crime Insurance Company: Travelers Casualty & Surety Company of America Policy Term: 10/01/2020 to 10/01/2021 Coverage: Travelers Crime coverage offers multiple insuring agreements to provide protection for exposures such as loss from forgery or alteration, employee dishonesty, loss of money and securities and reimbursement for claim expenses. Annual Premium- $6,968.00 Description A — Fidelity 1. Employee Theft $2,000,000 k $50,000 2. ERISA Fidelity Not Covered 3. Employee Theft of Client Property Not Covered B — Forgery or Alteration $2,000,000 $50,000 C — On Premises $2,000,000 $50,000 D — In Transit $2,000,000 $50,000 E — Money Orders and Counterfeit Money $2,000,000 $50,000 F — Computer Crime 1. Computer Fraud $2,000,000 $50,000 2. Computer Program and Electronic Data Not Covered Restoration Expense G — Funds Transfer Fraud J _ $2,000,000 � $50,000 H — Personal Accounts Protection 1. Personal Accounts Forgery or Alteration Not Covered 2. Identity Fraud Expense Reimbursement Not Covered I — Claim Expense $5,000 $0 Social Engineering Fraud $100,000 $50,000 Computer Fraud —Theft of money, securities or property by computer to fraudulently transfer covered property from your premises or bank to another person or place outside of your premises Employee Theft Coverage — Covers loss of or damage to money, securities and other property caused by employee dishonesty I Forgery or Alteration — Covers losses resulting from forgery or alteration of checks or covered instrument 4 -- Inside the Premises —Theft of Money and Securities -Covers losses by theft, disappearance or destruction Inside the Premises — Robbery or Safe Burglary of Other Property — Covers the robbery of a custodian and safe burglary Out ide the Premises — Covers losses in the care and custody of a messenger or armored car US! Applicable Forms & Endorsements Policy Forms CRI-2001-0109 Crime Declarations Page CRI-3001-0109 Crime Policy Form Endorsements ACF-7006-0511 Removal of Short -Rate Cancellation Endorsement CRI-10073-0311 Government Entity Crime Coverage Without Individual Exclusion Endorsement Employee Theft Per Loss Coverage Limit $2,000,000 Employee Theft Per Loss Coverage Retention $50,000 CRI-10083-0411 Sponsored Plan Endorsement CRI-19072-0315 Global Coverage Compliance Endorsement —Adding Financial Interest Coverage And Sanctions Condition and Amending Territory Condition Endorsements tcont'dj CRI-19085-0516 Social Engineering Fraud Insuring Agreement Endorsement CRI-19097-0517 Replace Exclusion BB. Endorsement CRI-19101-1117 Amendatory Endorsement for Certain ERISA Considerations CRI-4019-0911 Texas Changes Endorsement CRI-SO44-0613 Texas Cancellation or Termination Endorsement CRI-7026-0713 Amend Cancellation As To Any Employee Endorsement CRI-7059-0109 Amend Definition of Employee Endorsement CRI-7087-0109 Amend Duties in the Event of Loss — Knowledge by Corporate Officials Endt CRI-7135-0910 Government Entity Crime — Specified Limit and Retention for Faithful Performance or Duty (Except Police Officers or Other Peace Officers) Endt Single Loss Limit $1,000,000 Single Loss Retention $50,000 CRI-7203-0109 Amend Extended Period of Discover Loss Endorsement CRI-7224-0517 Tax Liability Endorsement Forms and Conditions Settlement Basis ■ Money— Face value ■ Securities —Value on the day the loss was discovered ■ Property— Cost to repair or replace Discovery Period — Pays only for covered loss discovered no later than one year from the end of the policy period Records — You must keep records of all covered property to verify the amount of the loss Duties In The Event Of A Loss — Notify us as soon as possible, cooperate with investigation & settlement 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 sublimity that will govern in the event of a loss. am 1 21 Drones — Hull & Liability Package Insurance Company: Global Aerospace, Inc. Policy Term: 10/01/2020 to 10/01/2021 Coverage: We will pay claims, for those sums that you become legally obligated to pay as damages, for bodily injury and property damage, resulting from the ownership, maintenance or use of the aircraft. Annual Premium: $3,156.00 Aircraft Schedule: Unmanned Aircraft System 2016 DJI Inspire 1 Serial Number insured Value W13DC105040108 $3,000 2019 Yuneec Typhoon YU182109891312A01 $1,500 2016 DJI Phantom 4 FA3WX3ALP3 $1,500 2018 DJI Phantom 2 07JDF270020OB9 $5,500 2018 DJI Mavic Pro 08QCEBDO22A5UA $400 2019 DJI Mavic 2 Pro 163CGALROA3VAC $1,600 Approved Pilots: Any pilot as approved by the Named Insured provided each pilot is properly certificated, rated & qualified under the current F.A.A. regulations. Purpose of Use: Law Enforcement, Fire Fighting/Support, and CML Photography/Videography Limits of Liability: Liability Coverage $1,000,000 Personal Injury $1,000,000 Medical Expense Coverage $50,000 Fire Legal Liability $100,000 War and TRIA Included Deductible 5% In Motion /5% Not in Motion 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. Premium Overview Hull Premium _ $1,228 $1,539 $1,020 Liability Premium _ _ $4,220� $5,826 $2,136 Total Annual Premium: $5,448 ' _ $7,365 $3,156 *For five drones, not including the newly added 2019 All Movic 2 Pro �t � 19