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Home My WebLink About02-37 Resolution No. 02-37 RESOLUTION ACCEPTING THE PROPOSAL OF LUNDSTROM INSURANCE FOR POLLUTION LIABILITY INSURANCE 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 pollution liability insurance coverage, a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: February 13, 2002 Adopted: February 13 , 2002 Omnibus Vote: Yeas : 7 Nays: 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk I I I AN INSURANCE RISK MANAGEMENT REVIEW PREPARED FOR: City Of Elgin 150 Dexter CT Elgin, IL 60120 10/01/01 - 10/01/02 t I PRESENTED BY: ROGER LENART, CIC INTRODUCTION OF THE SERVICING TEAM Lundstrom Insurance offers professional and experienced personnel, who stand ready at all times to serve your organization in any capacity related to the insurance function. We strive to attract high-level employees that have demonstrated superior academic achievement, reached a level of maturity to deal the complex problems, and have the desire to improve through advanced training. We continually seek experienced personnel who can bring to us unique skills and have developed professionalism consistent with our high standards. Our team approach allows us to provide dedicated quality insurance, risk management and claims service to all our clients. You are assured to receive the utmost in personal service. We have organized the following service team approach: ROGER LENART, CIC - Account Executive. Supervision, as well as coordination of the rest of the staff serving their area of responsibility, lies with an agency principle. We assist your firm with risk analysis including identification of exposures, recommend appropriate transfer of risk and proper use of the self- insurance and or deductibles. We believe risk analysis is the heart of your program. Esther M. Lembke - Account Manager. Maintaining a proper relationship with insurance company contacts in order to provide the best combination of protection is essential. We will negotiate with companies for comprehensive coverages and fair pricing. The markets or carriers, which we use, are selected based on their financial integrity, market share as it relates to particular coverage and quality of local support staff. Heather Friedel - Claims Manager. At the time of a loss, we assist to make sure that the claim is presented in an appropriate and complete manner so that the loss settlement is fair and satisfactory. We will provide pro-active assistance and support to you on all claims. Whenever necessary, we will intervene in any coverage or monetary dispute between you and the insurance carrier. Steve Daluge, MS, CSP - Certified Safety Professional. An expert review of company safety and engineering recommendations and guidelines in implementing them will be a great benefit to your business. In some cases, if appropriate, we will assist you in having them modified or adjusted. 1 Dennis Stanhoff - Surety Bond Specialist. Complicated bond requirements are handled expeditiously and professionally. We will review insurance requirements and suggest options for compliance. J I I 1 ] Contractors Pollution Liability I Insured: City Of Elgin Insurer: American International Group ] Policy Term: 10/01/01 to 10/01/02 COVERAGE WRITTEN ON: Claims Made Form l ] COVERAGE LIMITS Contractors Pollution Liability $2,000,000 Each Claim ] $2,000,000 Aggregate $ 10,000 Deductible ' Endorsements: Minimum Earned Premium Endorsement Professional Liability Exclusion Separate Defense Expense Limit Endorsement ILinking of Limits Change of Address of Insurance Company I I I I I i . I Commercial Pollution Legal Liability Insured: City Of Elgin Insurer: American International Group Policy Term: 10/01/01 to 10/01/02 COVERAGE WRITTEN ON: Claims Made Form I COVERAGE LIMITS Commercial Pollution Legal Liability $2,000,000 Each Incident $2,000,000 Policy Aggregate $ 10,000 Deductible Coverage Includes The Following: Coverage for all sites currently owned,operated,rented by or occupied by the Named Insured. On-Site clean-up costs resulting from pre-existing and new pollution conditions with a discovery I trigger. Third Party Liability for on-site and off-site bodily injury,property damage and clean-up resulting from pre-existing and new pollution conditions. I Contractors pollution liability coverage. Non-owned disposal site coverage. Transportation coverage. Endorsements: Waste Disposal Retroactive Date: 10/01/00 Change of Address Endorsement Minimum Earned Premium Endorsement Defense Costs Amendatory Endorsement UST Exclusion Endorsement Insuring Agreement Amendment Exclusion Amendment 1 I I Premium Summary IInsured: City Of Elgin Insurer: American Intl Specialty Lines Policy Term: 10/01/00 to 10/01/01 I COVERAGE ANNUAL PREMIUM I Pollution Liability- $2,000,000 $ 32,960 Surplus Lines Taxes $ 1,088 Total $ 34,048 Currently Inforce Pollution Liability- $3,000,000 $ 39,280 Surplus Lines Taxes $ 1,296 Total $ 40,576 Pollution Liability -$5,000,000 $ 50,700 Surplus Lines Taxes $ 1,673 Total $ 52,373 I I I DISCLAIMER-The abbreviated outlines of coverages used throughout this proposal are not I intended to express any legal opinion as to the nature of coverage. They are only visuals to a basic understanding of coverages. Please read your policy for specific details of coverages. CLIENT SERVICES OFFERED I Commercial / Industrial Services • General, Umbrella or Excess Liability, Workers Compensation and Vehicle Fleet • Property, Business Interruption, Boiler& Bonds • D&O, Self- Funded and Cost Plus Plans I • Equipment Leasing Available Group Insurance and Employee Benefits • Life, Health, Dental, Disability, Drug Card and Vision • Pension and Retirement Savings Plans • PPO's, HMO's, Cafeteria Plans, Payroll Deduction Plans and Self - Insurance Financial & Personal Services • Business Buy/Sell, Key Person and Individual Life • Disability and Health Insurance • Long Term Care Insurance • Personal Excess and Auto/Homeowner Packages I I I I ,,�.4OF City of Elgin Agenda Item No. o '`� q-1 TED E�� E �i1c ri January 18 , 2002 ALIVE DOWNTOWN TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT: Additional Pollution Insurance Coverage PURPOSE The purpose of this memorandum is to provide the Mayor and the members of the City Council with information to award a contract for additional pollution insurance coverage . BACKGROUND The City Council approved the City' s limited self-insurance program for the period October 1, 2001 through September 30, 2002 at its September 26, 2001 meeting, including $2 , 000, 000 pollution coverage . Among the recommendations was the directive for staff to solicit quotations for Pollution Liability Insurance with coverage of $3 , 000, 000 and $5, 000, 000 and return to the City Council with a recommendation for award, if any. The City' s general liability and umbrella liability policies provide very limited coverage for certain pollution claims . The pollution policy provides 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 of most chemical spills; and 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 City' s insurance broker, Lundstrom' s Insurance solicited quotes for additional coverage on the City' s behalf . It is staff' s recommendation that the most cost effective increase at this point is to $3 , 000, 000 coverage for an additional premium cost of $6, 528 . , . . ri. Pollution Liability Insurance January 18, 2002 Page 2 GROUPS/INTERESTED PERSONS CONTACTED None . ((2)r ALEINANCIAL IMPACT Sufficient funds ($6, 528) can be transferred from 630-0000-796 . 84- 03 , Risk Management Insurance Claims Reserves, into account number 630-0000-796 . 50-14, Risk Management, Pollution Liability. L ' AL IMPACT None. ALTERNATIVES Alternatives include not purchasing additional pollution coverage, or purchasing $5, 000, 000 in coverage for an additional premium of $18, 325 . 001k RECOMMENDATIONS It is recommended that the City Council accept Lundstrom' s proposal for $3, 000, 000 of pollution liability coverage @ a cost not to exceed $6, 528 . Respectfully submitted, C4 e.s... • Ifax.s-Lik a ti- Joyce A. Parker City g na er GAC Attachment r • . . • 1,h Premium Summary -.I j Insured: City Of Elgin Insurer: American Intl Specialty Lines __] Policy Term: 10/01/00 to 10/01/01 -J 1 COVERAGE ANNUAL PREMIUM -.I Pollution Liability- $2,000,000 $ 32,960 _j Surplus Lines Taxes $ 1,088 Total $ 34,048 Currently Inforce `J Pollution Liability-$3,000,000 $ 39,280 Surplus Lines Taxes $ 1,296 - Total $ 40,576 Pollution Liability- $5,000,000 $ 50,700 Surplus Lines Taxes $ 1,673 Total $ 52,373 1 , DISCLAIMER-The abbreviated outlines of coverages used throughout this proposal are not ilow intended to express any legal opinion as to the nature of coverage. They are only visuals to a basic understanding of coverages. Please read your policy for specific details of coverages. -.1 I