00-207 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
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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
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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
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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
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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.
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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.
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" 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.
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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.
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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
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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
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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.
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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
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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
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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
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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.
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