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