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Home My WebLink About00-207 Resolution No . 00-207 RESOLUTION ACCEPTING THE PROPOSAL OF LUNDSTROM INSURANCE FOR LIMITED SELF-INSURANCE PROGRAM BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS , that Joyce A. Parker, City Manager, be and is hereby authorized and directed to accept the proposal on behalf of the City of Elgin of Lundstrom Insurance for the city' s limited self-insurance program for the period October 1 , 2000 through September 30, 2001 as follows : a . The St . Paul $50 , 000/occurrence (SIR) for the property policy and $75 , 000/occurrence (SIR) for general liability with $350 , 000 "All Lines" aggregate SIR proposal for a total excess premium and claims administration cost of $425, 896 ; b. The Illinois National $250 , 000/occurrence compensation proposal for a total excess premium cost of $28, 270 ; c . The Cannon Cochran Management Services proposal for workers ' compensation claims administration services for $31, 950 ; d. The AIG $2 , 000, 000/occurrence and $2 , 000, 000/aggregate with $10, 000/deductible for pollution liability coverage for $29, 300 ; a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: September 27 , 2000 Adopted: September 27 , 2000 Omnibus Vote : Yeas 7 Nays 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk ��{OF Et C, K ° City of Elgin Agenda Item No y! �i. b'�TfDFS�,a ! �' E `.L September 1, 2000 `" r0 k 1s"jaai TO: Mayor and Members of the City Council ' I ��'��! N \+ " SIP NI I FROM: Joyce A. Parker, City Manager FINANCIALLY STA BLE GITVGOVERNMENT EFFICIENT SERVICES, AND QUALIT Y INFRASTRUCTURE SUBJECT: Renewal of Liability and Worker' s Compensation Insurance Policies for 2000 - 2001 PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to award a contract for the renewal of our insurance policies with St . Paul, Safety National, and Cannon Cochrane Management Services, Inc. , through Lundstrom Insurance and to award a contract for a new pollution policy with AIG. BACKGROUND (elk Two years ago, the City' s independent insurance consultant, Risk Resources, performed a comprehensive review and analysis of various insurance proposals presented by Lundstrom Insurance, the City' s insurance agent. Risk Resources' recommendations were accepted by the City Council, resulting in the City accepting a three-year guaranteed rate proposal from St . Paul, Safety National, and Cannon Cochrane Management Services, Inc. Therefore, this year premiums have increased only to reflect a growth in the certain factors such as property, citizens and employees . Highlights of the City' s insurance policies include: St . Paul $50, 000 per occurrence Self Insured Retention (SIR) for the property policy, and $75, 000 per occurrence Self Insured Retention for the general liability policy. The property premium has increased from $57, 172 to $71, 128 to reflect City assets such as the expanded water treatment plant and Walton Island improvements . The City has a $7, 000, 000 umbrella policy with a $10, 000 Self Insured Retention that sits on top of all other policies except the Healthcare Professional Liability policy. r tow Renewal of Insurance Policies September 1, 2000 Page 2 The City has a $350, 000 basket aggregate, meaning that once all claims (property, general liability, employee benefits liability, public entity management liability and automobile liability) paid by the City total $350, 000, all future claims in that policy year are paid by St . Paul . Worker' s Compensation claims are administered by Cannon Cochrane MSI . Excess Worker' s Compensation coverage beyond the statutory retention amounts of $250, 000 per employee is provided by Illinois National Insurance for an estimated premium (final amount depends on payroll figures) of $28, 270 . Attached is the 2000-2001 proposal summary by Lundstrom Insurance that details the policies the City holds . The City' s risk management consultant, Risk Resources, and staff recommend purchase of a pollution liability policy. The City' s general liability and umbrella liability policies provide very limited coverage for certain pollution claims . The City does not have coverage for any loss, cost or expense for testing, monitoring, clean up or responding to or assessing in any way the effects of any pollutant, claims arising out most chemical spills or for pollutants released into the Fox River. While the frequency of these incidents is low, the corresponding liability is very high, making pollution claims an ideal exposure to be covered by an insurance policy. The premium cost of $29, 300 for pollution liability insurance from AIG is based upon a $2, 000, 000 per occurrence and $2, 000, 000 aggregate, with a deductible of $10, 000. The City' s property insurance coverage includes loss of tax revenue from the Riverboat . The premium is based upon an interruption of up to six months and loss of $8, 750, 000 . If the Riverboat were to cease operations for six months, the actual loss of revenue to the City would be closer to $12, 000, 000 . The premium cost for increasing the City' s coverage for interruption to Riverboat operations would be $3, 450 . The City' s umbrella limit of $7, 000, 000 has not increased in at least two years . A survey of several communities indicates that an umbrella limit of at least $10, 000, 000 is more appropriate . Increasing the City' s umbrella limit to $10, 000, 000 will cost an additional $1, 616. rft. GROUPS/INTERESTED PERSONS CONTACTED None. e""° Renewal of Insurance Policies September 1, 2000 Page 3 FINANCIAL IMPACT There are sufficient funds available in the 2000 Risk Management Fund 630-0000-101 . 01-01 et . seq. to cover the recommended insurance premiums of $445, 868 and related claims administration expenses of $31, 950 . Sufficient funds will be established in the Year 2001 Risk Management Fund budget to pay for premiums from January through September 2001 . LEGAL IMPACT None . ALTERNATIVES None. RECOMMENDATIONS ew It is recommended that the City Council approve renewal of our existing insurance policies from the period October 1, 2000 through September 30, 2001 as follows : St . Paul $417 , 598 Illinois National $ 28, 270 Cannon Cochrane MSI $ 31, 950 It is recommended that the City Council approve the following additions to our insurance coverage: • Pollution liability policy with AIG $29, 300 • $3, 000, 000 increase to the City' s umbrella policy $ 1, 616 with St . Paul • Business interruption coverage for loss of Riverboat revenue up to $12, 000, 000 $ 3, 450 with St . Paul dill•- •pectfully submitted, a , 1/Z,--____ , . emilik J& ce A. Parker City Manager AN INSURANCE RISK MANAGEMENT REVIEW PREPARED FOR: City Of Elgin 150 Dexter CT Elgin, IL 60120 l0/1/00 - 10/1/01 PRESENTED BY: ROGER LENART, CIC Lundstrom INSURANCE a� �ivunsxi umo.iispunn • SZ uosruiduzoj tun uzaid £Z uoriesuaduzoj ,sia I1oM,!► I aouuinsul ssaoxgre laiquin OZ aouprnsul auzu° 61 suorlrpuo3 uI °auaia3n 81 a3UEmsUI auprw Peiul LI aouEansul airgouzo2nv S I luauza8euEN Suriug orignd £i aoUEinsul luauxaaioJug mei ZI uoUoemid/(1rirgei'I IeuorssaJoid ieorPaNl Xlriroe3 amp g1UEaH 11 aoueunsui Curirqun uone.nsruruzpy sigauag aaAoiduzg 6 aoue.znsul A;rirgeq ielauaO Alpug orignd g aouwJnsuI tiaurgoew .zairog 9 aoueinsui Avado1d S £aeuzuzns iesodoid Iried is ar LL inoqv £ iEsodoad aoueinsui slualuoO JO aiqui S1M 1MO. da EI NV1 • INSURANCE PROPOSAL FOR: City of Elgin,Illinois PREPARED BY: Lundstrom Insurance and St. Paul Mercury Insurance Company Public Sector Services This proposal shows the premiums for the general coverages described, but in no way changes or affects any terms, conditions or exclusions of policies as actually issued. Premiums shown are based on information furnished the company. This proposal is valid for 60 days from date of issue. Proposal Date: August 4, 2000 Effective Date: October 1, 2000 • 3 Lundstrom INSURANCE ABOUT THE ST, PAUL St. Paul Fire and Marine Insurance Company was founded in 1853, and is Minnesota's oldest 1 business corporation. The St. Paul Companies' merger with US&G Corporation, completed in April 1998, created a stronger company that reflects the best of both companies, products, services and employees. At the time of the merger,the new St. Paul was listed as the eighth- ! largest property-liability insurance underwriter in the United States, among the five largest U.S. reinsurance underwriters and one of the top 15 reinsurers in the world. St. Paul is a financially strong company with an AM Best Rating of A+ - Superior*; a Moody's rating of Aal -Excellent ** and a Standard &Poor's rating of AAA - Extremely Strong***. The St. Paul is a fortune 500 company, and its stock is listed on the New York Stock Exchange under the symbol SPC. St. Paul is a leader in providing customized risk management to meet the unique needs of specific customer groups. We believe that effective risk management involves working together with you and your independent agent or broker as partners to most effectively tackle your risk management needs and concerns. By exclusively underwriting and servicing public entities,we are able to provide insurance, loss control, and claim services that are designed specifically to meet your needs. The St. Paul is an industry leader in providing innovative loss control services to help customers identify risks, minimize loses and maximize profitability. In addition, all St. Paul policy holders can depend on prompt, professional claim service from specialists who understand and are committed to meeting their needs. By preventing losses before they occur, you will save not only in lower insurance costs,but also in human terms with a better, safer community. It is the policy of St. Paul to comply with all application federal, state and local fair employment laws. In addition, St. Paul files appropriate EEO-1 reports and voluntarily subscribes to the principles of affirmative action. We hope you'll choose St. Paul Public Sector Services to meet your insurance and risk management needs. * A+is the second highest rating available based upon a scale from A++to D. ** Aa is the second highest rating available based upon a scale from Aaa to C. Moody's also applies a ranking within the group with one being the highest and three being the lowest. *** AAA is the highest rating available based upon a scale from AAAto CC. 4 Lundstrom INSURANCE • PROPOSAL SUMMARY COVERAGES This proposal contains information and premiums for the following coverages: Property Law Enforcement Liability Boiler& Machinery Public Entity Management Liability Inland Marine EMT Liability Crime Automobile Liability General Liability Umbrella Liability Employee Benefits Liability The St. Paul has the ability to provide you with loss runs,based on your need for frequency and amount of detail. `CONDITIONS OF COVERAGE " This quotation is subject to the following conditions prior to binding: • Satisfactory driver's records • Satisfactory auto schedule • Signed statement of values • Inland marine schedule (include all coverages) 5 Lundstrom INSURANCE PROPERTY INSURANCE COVERAGE PROPERTY COVERED LIMIT COINS SIR LEVEL OF COVERAGE Blanket Building & $141,312,829 100% $50,000* "All Risk" Contents Agreed Amount Blanket Business Income $ 5,000,000 50% Blanket Extra Expense $ 5,000,000 40/80/100% Loss of Tax Revenue $ 8,750,000 (Riverboat) * $350,000 Basket Aggregate (Includes: property, general liability, employee benefits liability,EMT liability, law enforcement liability, public entity management liability, automobile liability) St. Paul's Property Form Automatically Includes The Following Coverages: $100,000 Accounts Receivable $100,000 Increased Cost of Construction &Demolition No exclusion Change in Temperature& Humidity $50,000 Computer $25,000 Extra Expense $50,000 Fine Arts $25,000 Fire Department Service Charge $10,000 Inventory&Appraisals $10,000/$5,000 Money& Securities (Inside/Outside) $1,000,000 Newly Acquired Property-Building for 180 days $500,000 Newly Acquired Property -Personal Property for 180 days $25,000 Other People's Property $50,000 Outdoor Property $25,000 Pairs & Sets $50,000 Personal Belongings $25,000 Pollution Clean-Up $10,000 Precious Metal -theft $50,000 Property in Transit $50,000 Temporary Location $100,000 Valuable Records Research $50,000 Water Damage 6 Lundstrom INSURANCE 'COVERAGE HIGHLIGHTS Valuation: Replacement cost includes permission to rebuild or replace any real property at 1 another location, if the damage to the building or other structure is so extensive that it can't be repaired or replaced without having to tear down the remainder of the building. If the damage can be repaired without having to tear down the remainder of the building or structure, the repairs, rebuilding or replacement of the damage must take place on the same site. Agreed Value: An agreed amount endorsement will be attached which eliminates any coinsurance penalty. Scope of Coverage: 1. Architect's and engineer's fees for plans, specifications, supervision and inspection are included in the loss recovery when a loss is due to a covered peril. 2. Increased Cost of Construction & Demolition coverage is provided as an additional benefit for$100,000 for the increased costs of upgrading damaged parts of the building to comply with the minimum requirements of any building code in force at the time of loss. This additional benefit will apply to any location that is replacement cost coverage. 3. Collapse coverage is included in our property form for specified perils. The collapse must be due to any of the following causes of loss: • Fire, smoke,lightning, wind and hail, explosion, vehicles and aircraft, vandalism and malicious mischief, civil disturbance and riot, leakage from fire extinguishing equipment, sinkhole collapse and volcanic action as described in our form. • Building glass breakage, falling objects, weight of ice and snow or sleet,water damage as described in our form. • Hidden decay. • Hidden insect or vermin damage. • Weight of people or business contents or other personal property. • Weight of rain which collects on a roof. • Use of defective material or methods in construction, remodeling or renovation if the collapse occurs before such work is completed. • Collapse doesn't include settling, cracking, bulging, shrinking or expansion. 4. The policy addresses errors and omissions in the General Rules Form. 5. Building coverage includes construction materials, supplies and equipment that the insured intends to use to alter, repair or expand the insured building. During construction, these materials are covered at the insured location or in the open within 1,000 feet of it. We'll also cover any temporary structures at the insured location. 6. Business contents are covered in or on a building described in the Statement of Values and in the open or in vehicles in the open within 1,000 feet of the insured location. 7. Includes Year 2000 Clarification Endorsement. 8. Includes off premises utility failure for$1,000,000. • Please NOTE: The agreed amount endorsement cannot be attached until a signed Statement of Values is received from the insured. rPRENIILAVI $72,069 is the premium for Building &Contents coverage. • Lundstrom INSURANCE BOILER & MACHINERY INSURANCE 'COVERAGE PROPERTY COVERED LIMIT COINS DED. LEVEL OF COVERAGE Blanket Building & $16,000,000 100% Contents * $2,000 Sewage Treatment Plant $1,000 All Other Objects [COVERAGE HIGHLIGHTS This coverage is written by Hartford Steam Boiler. We can include this coverage as part of our package policy. Coverage includes Boilers, Vessels, Piping, Air Conditioning and Refrigeration Equipment, Machinery& Electrical Equipment, including production, process and maintenance machinery, fiber optics cables, robotics equipment, lasers, pollution control equipment and telephone systems. Utility Owned Electrical Distribution,Equipment within 500 feet supplying the premises of the insured, included extended coverage. Includes Year 2000 Clarification Endorsement. PPREMJUM • $12,160 is the premium for Boiler Coverage. • 8 Lundstrom INSURANCE PUBLIC ENTITY GENERAL LIABILITY INSURANCE Occurrence Coverage Form !LIMITS - ,r $3,000,000 General Total Limit $3,000,000 Products &Completed Work Total Limit $2,000,000 Personal Injury Each Person Limit $2,000,000 Advertising Injury Each Person Limit $2,000,000 Each Event Limit $ 100,000 Premises Damage Limit $ 5,000 Medical Expenses Limit $2,000,000 Failure to Supply Limit $2,000,000 Sewer Back-Up Limit $ 75,000 Self Insured Retention * * $350,000 Basket Aggregate (Includes: property, general liability, employee benefits liability,EMT liability, law enforcement liability,public entity management liability, automobile liability) Note: The General Total Limit applies separately to your different operations, as defined in your operating budget. 9 Lundstrom INSURANCE ICOVERAGE HIGHLIGHTS 4 Who is Protected Public Entity Elected or Appointed Officials Board Members • Employees and Volunteers Real Estate Managers Landlords Equipment Lessors Operators of Mobile Equipment Broad Form Contractual, including coverage for indemnity defense expenses Pollution coverage for: • pesticide/herbicide application • chemicals used in water treatment-chlorine or sodium hypochlorite • sewer back-up • hostile fire heat, fumes or smoke; or mobile equipment operating fluids Watercraft coverage for non-owned watercraft that is less than 75 feet and owned watercraft less than 25 feet. Watercraft users as additional protected persons. [SPECIAL CONDITIONS This policy is not subject to an annual audit. Excludes: Year 2000 claims Includes: Liquor Liability (Limit: $2,000,000/$3,000,000 subject to a$75,000 SIR); Contract between the City of Elgin and Ohlson Investigation & Security Services (as it relates to their monitoring of the City of Elgin's cemetery) PREMIUM �. . $85,860 is the premium for Public Entity General Liability. 1 10 Lundstrom INSURANCE EMPLOYEE BENEFITS ADMINISTRATION LIABILITY INSURANCE ICOVERAGE _ - _ I Claims Made Coverage form This policy is designed to cover liability arising only out of the administration of the employee benefit plans, limited to clerical errors, advice (except as excluded) and interpretation of benefits. No Retro Date applies. However coverage does not apply if entity was aware of wrongful act prior to effective date of this agreement or could reasonably foresee that a suit or claim would be brought against the entity. tLIMITS $1,000,000 Each Wrongful Act Limit $3,000,000 Total Limit $ 75,000 Self Insured Retention * * $350,000 Basket Aggregate (Includes: property, general liability, employee benefits liability,EMT liability, law enforcement liability,public entity management liability, automobile liability) [SPECIAL CONDITIONS _ _.__ . 1 Excludes: Year 2000 claims 'PREMIUM 1 Included in CGL is the premium for Employee Benefits Liability. 1 " Lundstrom INSURANCE HEALTH CARE FACILITY MEDICAL PROFESSIONAL LIABILITY PROTECTION LC OVERAGE This Agreement provides coverage for Nurses and EMT's. We will pay amounts the insured or others protected under this agreement are legally required to pay as damages for covered professional liability claims. To be covered, claims must be based on events that arise out of the professional(s) named in the Coverage Summary. CLAIMS-MADE Retro Date: October 1, 1995 [LIMITS $2,000,000 Each Person Limit $3,000,000 Total Limit $ 75,000 * Self Insured Retention * $350,000 Basket Aggregate (Includes: property, general liability, employee benefits liability,EMT liability, law enforcement liability, public entity management liability, automobile liability) COVERAGE HIGHLIGHTS I Who is Protected Under this Agreement - Organization. If you are an organization shown in the coverage summary, you're protected against claims that result from professional services that were or should have been provided by anyone for whose acts you're legally responsible. Additional benefits. All of the following benefits are in addition to the limits of coverage. However, we won't defend a suit or pay a claim after the limit of coverage that applies has been used up in paying judgments or settlements. Defending lawsuits. We'll defend any suit brought against any protected person for covered claims, even if the suit is groundless or fraudulent. We have the right to investigate, negotiate and settle any suit or claim if we believe that is proper. We'll pay all costs of defending the suit, including interest on that part of any judgment that doesn't exceed the limit of coverage. 'SPECIAL CONDITIONS 1 Excludes: Year 2000 claims PREMIUM Included in CGL is the premium for all Health Care - EMT coverage. 12 Lundstrom INSURANCE 1 . JAW ENFORCEMENT LIABILITY INSURANCE i OVERAGE ,: x This insuring agreement was designed to cover both the premises and operations exposures and the professional liability of law enforcement agencies,this includes your jail operations if applicable. We'll pay amounts any protected person is legally required to pay as damages for covered injury or damage that: • results from the conduct of law enforcement duties by or for your law enforcement agency; • happens while this agreement is in effect; and • is caused by a wrongful act. This coverage is provided on an occurrence basis. $2,000,000 Each Wrongful Act $2,000,000 Total Limit $ 75,000 * Self Insured Retention * $350,000 Basket Aggregate (Includes: property, general liability, employee benefits liability,EMT liability, law enforcement liability, public entity management liability, automobile liability) I 13 Lundstrom INSURANCE COVERAGE HIGHLIGHTS Includes coverage for: • Bodily injury, property damage and personal injury • Emotional distress or mental anguish even if there is no bodily injury • Humiliation • False arrest, detention or imprisonment • Malicious prosecution • False or improper service of process • Violation of civil rights protected under any federal, state or local law • Providing first aid at the time of an accident or crime Who is Protected The Public Entity- named insured Elected or Appointed Officials Employees Volunteer Workers Law Enforcement Officers Coverage is provided for any authorized activities, including moonlighting Additional Payment included for Personal property of others - $25,000 Employment Related Practices of the Law Enforcement department are covered under the Public Entity Management Liability form All auto related claims are covered under the automobile insuring agreements SPECIAL CONDITIONS °"s:`- :r 1 Excludes: Year 2000 claims [PREMIUM .. t s $63,716 is the premium for Law Enforcement Liability. • • 14 Lundstrom INSURANCE PUBLIC ENTITY MANAGEMENT LIABILITY INSURANCE COVERAGE " .. .. . . . 11 This policy is designed to cover damages any protected person is legally required to pay for covered loss that results from the conduct of duties by or for a public entity and is caused by a wrongful act. Wrongful act is defined as any error, omission or negligent act, including employment-related practices. This coverage is provided on a Claims-Made basis. The Retroactive Date is: October 1, 1987. Consent to Settle Clause ms's $2,000,000 Each Wrongful Act Limit $2,000,000 Total Limit $ 75,000 * Self Insured Retention * $350,000 Basket Aggregate (Includes: property, general liability, employee benefits liability, EMT liability, law enforcement liability,public entity management liability, automobile liability) 15 Lundstrom INSURANCE tCOVERAGE HIGHLIGHTS Who is Protected The Public Entity Elected or Appointed Officials Board Members • Volunteer Workers Estates, Heirs,Legal Representatives or Assigns Employees (including employees of the entity's boards) 1 Typical claims made against protected persons include: • failure to properly zone • wrongful termination • violation of civil rights • wrongful denial of permit • improper procedures/management • Pay on behalf basis • Duty to defend claims even if allegations are groundless, false, or fraudulent • Settlement Consent clause included in the policy • Prior Acts coverage back to the retroactive date (effective date of the first claims-made policy) • Automatic Limited Reporting Period of 60 days after the agreement ends • Option to purchase Extended Reporting Period • Punitive damages covered up to full policy limits, if allowed by law • Law Enforcement Duties Exclusion does not apply to employment-related practices • Personal Injury Exclusion does not apply to employment-related practices • No exclusion for Architects, Engineers or Lawyers ESPECIAL CONDITIONS t Excludes: Year 2000 claims 'PREMIUM • f $37,982 is the premium for all Public Entity Management Liability coverage. 16 Lundstrom INSURANCE AUTOMOBILE INSURANCE !LIABILITY COVERAGE & LIMITS - . Autos Covered: All Autos (Based on 288 units) $2,000,000 Auto Liability $2,000,000 Uninsured\Underinsured Motorist $ 5,000 Medical Payments $ 75,000 Self Insured Retention * $350,000 Basket Aggregate (Includes: property, general liability, employee benefits liability, EMT Iiability, law enforcement liability, public entity management liability, automobile liability) Composite Rate: $157 per unit CCOVERAGE HIGHLIGHTS Liability coverage for intentional or expected bodily injury and property damage is provided if the injury or damage results from the reasonable use of force to protect people or property. SPECIAL CONDITIONS - I Subject to satisfactory Motor Vehicle Records on all drivers. Includes: Removal of the fellow Employee Exclusion; Hired Car Physical Damage 0 1•Y M - 7' - F }^': $45,216 is the premium for Auto Liability. 17 Lundstrom INSURANCE i 1 INLAND MARINE INSURANCE i f1COVERAGE ., 4 : . ,,.= - .. Limit Premium Deductible I Auto Physical Damage $ 9,802,335 $6,127 $1,000 I 4 Miscellaneous Property $ 1,901,347 $ 434 $1,000 i Contractor's Equipment $16,077,520 $8,968 $1,000 >Unscheduled ($100,000 or less) $ 500,000 Included $1,000 Radio Emergency Equipment $ 7,867,202 $3,635 $1,000 Fine Arts $ 150,000 $ 100 $1,000 Account's Receivable $ 250,000 $ 363 $1,000 Valuable Papers $ 1,000,000 $ 150 $1,000 Transit $ 250,000 $ 380 $1,000 Electronic Data Processing Equipment $ 1,124,537 $1,587 $1,000 Data/Media $ 500,000 Included $1,000 Breakdown $1,000 SPECIAL CONDITIONS . .: �t :. , - .s 4�- 5 .y n. "' "i a I Includes: Year 2000 Clarification Endorsement. $21,744 is the total premium for all Inland Marine coverages. 18 Lundstrom INSURANCE ' DIFFERENCE IN CONDITIONS 1 [ l tCOVERAGE , _ -_=' , . ., , , - - - .. ., r -,= I 1 This policy is designed to cover real Property and Business Personal Property against losses which are not normally covered by the standard property form. I a [LIMITS `. °' . - -- _- ': ' .z 4: _ , I 1 i Difference In Conditions Limit$70,000,000 Deductible $50,000 Flood * Limit $ 6,000,000 Deductible $50,000 1 Earthquake >Blanket Property Limit$ 6,000,000 Deductible 1% >Underground Pipes Limit $16,000,000 Deductible 1% *Excludes Flood Zone"A" I ESPECIAL CONDITIONS . Includes: Year 2000 Clarification Endorsement $5,695 is the premium for Difference In Conditions coverage. 1 1 i 19 Lundstrom INSURANCE U • CRIME INSURANCE. •COVERAGE ,. . ., r= - _ • LIMIT PREMIUM DEDUCTIBLE Blanket Public Employee $500,000 $4,888 $5,000 Dishonesty w/faithful performance option Depositor's Forgery or $500,000 Included $5,000 Alteration Money& Securities $500,000 Included $5,000 ESPECIAL CONDITIONS This quotation is subject to the following controls being in place: • annual audits completed by an independent auditor or state auditor • bank accounts are reconciled monthly by someone not authorized to make deposits or withdrawals • countersignatures required on checks Includes: Year 2000 Clarification Endorsement PREMIUM :�'* $4,888 is the premium for all Crime coverage. 20 Lundstrom INSURANCE UMBRELLA/EXCESS LIABILITY INSURANCE OVERAGE ;w . : -... F . _ ::-r: . • The Umbrella/Excess Insuring Agreement provides: • excess limits above the primary limits for damages that result from a single catastrophic event; • "drop down" coverage to respond to a reduction in the available primary insurance limit as a result of an impaired total limit, or replace the affected primary insurance if its total limit is exhausted; and • • broader than primary coverage. /LIMITS' c y z ,...:,, d _ $7,000,000 General Aggregate Limit $7,000,000 Products & Completed Operations Aggregate Limit $7,000,000 Personal Injury Limit $7,000,000 Advertising Injury Limit $7,000,000 Each Event Limit $ 10,000 Insured Retention • 21 Lundstrom INSURANCE COVERAGE HIGHLIGHTS y - _ The Standard Umbrella/Excess form with limits listed above provides coverage over the following forms: • General Liability • Auto • • Law Enforcement Liability (Occurrence) • Workers Compensation A separate Excess Errors and Omissions Liability Protection Claims-made form, with separate limits and deductibles, applies over the following forms: • Public Entity Management Liability • Employee Benefits Liability Note: The above Umbrella/Excess forms DO NOT provide excess coverage over the Healthcare Professional Liability Form (EMTs and Nurses). SPECIAL CONDITIONS Excludes: Year 2000 claims PPRENIIUM $36,750 is the premium for Umbrella coverage. OPTIONAL QUOTES $38,366 is the premium for Umbrella coverage at limits of$8,000,000/$8,000,000 with a $10,000 retention. $39,982 is the premium for Umbrella coverage at limits of$9,000,000/$9,000,000 with a $10,000 retention.. $41,598 is the premium for Umbrella coverage at limits of$10,000,000/$10,000,000 with a$10,000 retention. 22 Lundstrom INSURANCE WORKERS' COMPENSATION Insured: City Of Elgin Insurer: Illinois National Insurance Co Best Rating is A++15 Policy Term: 10/01/00 to 10/01/01 COVERAGE LIMIT PER WORKERS COMPENSATION BENEFITS (A): States: ILLINOIS EMPLOYERS LIABILITY(B): Bodily Injury by Accident $ 1,000,000 Each Accident Bodily Injury by Disease $ 1,000,000 Policy Limit Bodily Injury by Disease $ 1,000,000 Each Employee RETENTION Bodily Injury by Accident $ 250,000 Each Accident Bodily Injury by Disease $ 250,000 Policy Limit Bodily Injury by Disease $ 250,000 Each Employee PREMIUM BASIS: $33,655,000. ONE YEAR RATE: .084 PER 100 OF PAYROLL PREMIUM: $28,270. ALTERNATIVE: TWO YEAR RATE: .090 PER 100 OF PAYROLL PREMIUM: $30,290. ANNUALLY SUBJECT TO SECOND INSTALLMENT BEING PAID BY 9/1/01. SHORT RATE CANCELLATION PENALTY WOULD APPLY Attach: Broad Form Other States; 90Day Notice of Cancellation; Voluntary Compensation; Combined Retention; Industrial Aid Aircraft Exclusion; Multi Year Endorsement (if applicable). Other: Require annual loss runs from qualified TPA: Custard Claims Services 23 Lundstrom INSURANCE ESTIMATED PAYROLLS: CLASSIFICATION STATE CODE PAYROLLS Parking Meter Vending/Coin etc & D IL 5192 $ 40,000 Street or Road Construction IL 5506 $ 1,075,000 Waterworks Operation IL 7520 $ 2,125,000 Elec. Light/Power Co IL 7539 $ 260,000 Radio/TV Broadcasting/Police Comm. IL 7610 $ 800,000 Firefighters &D IL 7704 $ 6,165,000 Police Officers & D IL 7720 $ 10,350,000 Auto Service Repair IL 8380 $ 320,000 Clerical IL 8810 $ 5,775,000 Bldg Operations By Owner IL 9015 $ 590,000 Club Country IL 9060 $ 505,000 Park NOC &D IL 9102 $ 2,430,000 Cemetery Operations & D IL 9220 $ 190,000 Street Cleaning&D IL 9402 $ 600,000 Municipal Twp IL 9410 $ 1,955,000 Tree Trimming IL 0106 $ 25,000 24 Lundstrom INSURANCE PREMIUM COMPARISON RENEWAL EXPIRING PREMIUM PREMIUM COVERAGE W/$350,000 W/$350,000 BASKET BASKET Property+ [$50,000 SIR] $ 72,069 $ 71,128 Inland Marine [$1,000 Deductible] $ 27,457 $ 26,243 Crime [$5,000 Deductible] $ 4,888 $ 4,888 General Liability [$75,000 SIR] $ 85,860 $75,455 Liquor Liability [$75,000 SIR] Included Included Law Enforcement Liability [$75,000 SIR] $ 63,716 $ 63,716 Paramedic Liability [$75,000 SIR] Included Included Public Entity Management Liability [$75,000 SIR] $ 37,982 $ 36,447 Auto Liability++ [$75,000 SIR] $45,216 $43,803 Auto Physical Damage[$1,000 Deductible] Included Included Umbrella Liability $ 36,750 $ 36,750 Boiler& Machinery $ 9,772 $ 12,176 Claims Administration $ 31,500 32,548 (excluding Workers Compensation) St. Paul Total $415,210 $403,154 Excess Workers Compensation -Illinois National $ 25,914 $21,330 Workers Compensation Claims Administration $ 31,950 $30,875 TOTAL PROGRAM COST: $473,074 $455,359 25 Lundstrom INSURANCE PROPERTY VALUES: EXPIRING: $139,466,151. RENEWAL: $141,312,829. PUBLIC ENTITY MANAGEMENT: EXPIRING: $77,010. (POPULATION) RENEWAL: $ 85,068. (POPULATION) GENERAL LIABILITY: EXPIRING: $38,687,672. EXPENDITURES RENEWAL: $46,511,626. EXPENDITURES AUTOMOBILE PHYSICAL DAMAGE VALUES: EXPIRING: $8,172,694. RENEWAL: $9,802,355. WORKERS COMPENSATION PAYROLL: EXPIRING: $30,471,300. RENEWAL: $33,655,000. 26 Lundstrom INSURANCE