02-37 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
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AN INSURANCE RISK MANAGEMENT REVIEW
PREPARED
FOR:
City Of Elgin
150 Dexter CT
Elgin, IL 60120
10/01/01 - 10/01/02
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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.
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] Contractors Pollution Liability
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Insured: City Of Elgin
Insurer: American International Group
] Policy Term: 10/01/01 to 10/01/02
COVERAGE WRITTEN ON:
Claims Made Form
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] 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
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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
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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
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Premium Summary
IInsured: City Of Elgin
Insurer: American Intl Specialty Lines
Policy Term: 10/01/00 to 10/01/01
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COVERAGE ANNUAL
PREMIUM
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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
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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
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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
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,,�.4OF
City of Elgin
Agenda Item No.
o '`�
q-1 TED E��
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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
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Premium Summary
-.I j Insured: City Of Elgin
Insurer: American Intl Specialty Lines
__] Policy Term: 10/01/00 to 10/01/01
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1 COVERAGE ANNUAL
PREMIUM
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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.
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