Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
R15-029
1 RESOLUTION NO. R15 -029 2 3 A RESOLUTION OF THE CITY OF BOYNTON BEACH, 4 FLORIDA APPROVING THE RENEWALS OF THE PROPERTY 5 AND CASUALTY INSURANCE, GENERAL LIABILITY AND 6 AUTOMOBILE LIABILITY INSURANCE AND WORKSERS 7 COMPENSATION INSURANCE PROGRAM; AUTHORIZE THE 8 CITY MANAGER TO SIGN THE REQUIRED DOCUMENTS FOR 9 THE POLICY YEAR APRIL 1, 2015 TO MARCH 31, 2016; AND 10 PROVIDING AN EFFECTIVE DATE. 11 12 13 WHEREAS, on March 4, 2014, the City Commission approved insurance brokers, 14 Arthur J. Gallagher & Go and Gehring Group for a three year contract, which brokers are 15 required to submit recommendations for renewal of specific lines of insurance coverage for 16 consideration by the City; and 17 WHEREAS, after reviewing the two proposals and considering the proposed changes 18 from the current coverages and deductibles, staff recommends and the City Commission does 19 hereby accept Arthur JK. Gallagher's proposal for insurance renewal from April 1, 2015 to 20 March 31, 2016. 21 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF 22 THE CITY OF BOYNTON BEACH, FLORIDA AS FOLLOWS: 23 Section 1. Each Whereas clause set forth above is true and correct and 24 incorporated herein by this reference. 25 Section 2. The City Commission hereby approves the Property and Casualty 26 Insurance, General Liability and Automobile Liability Insurance and Workers' Compensation 27 Insurance Program renewals and authorizes the City Manager to sign the required documents 28 for the policy year April 1, 2015 to March 31, 2016. 29 Section 3. This Resolution shall become effective immediately upon passage. 30 31 C:\ Users\ Prainitoj \Appdata\Local\Microsoft\Windows \Temporary Internet Files\ Content. IES\ 9155K2YF \Property_And_Casualty_General_ Liability_ Insurance _Program_Renewal_ - _Reso.Doc -i 1 PASSED AND ADOPTED this 17 day of March, 2015. 2 CITY OF BOYNTON BEACH, FLORIDA 4 5 YES NO 6 7 Mayor — Jerry Taylor c� 8 9 Vice Mayor — Joe Casello ✓ 10 11 Commissioner — David T. Merker 12 13 Commissioner — Mack McCray ✓ 14 15 Commissioner — Michael M. Fitzpatrick ✓ 16 17 18 VOTE 5- 0 19 20 ATTEST: 21 22 - . 23 e ,, _ . / s _�L • 24 f et M. Prainito, MMC 25 'ity Clerk 26 27 �,ti1Y o 28 �" 29 I *. s r eal) 30 O 31 0 `Y 4 7; C:\ Users\ Prainitoj \Appdata\Loca1\Microsoft\Windows \Temporary Internet Files\ Content. IE5 \9155K2YF\Property_And_Casualty_ General_ Liability_Insurance_Program_Renewal_ - _Reso.Doc E COMPARISON BETWEEN BROKERS, ARTHUR J. GALLAGHER AND GEHRING GROUP FY 14/15 Policy Year Current GEHRING FY 15/16 PROPOSAL GALLAGHER FY 15/16 PROPOSAL Limits SIR /Deductibles Premium Gehring - Limits* SIR /Deductibles Premium Gallagher - Limits SIR /Deductibles Premium Property Insurance $0 $0 $0.00 $141,406,998 $25,000 $599,307.00 $25,000 Municipal $97,932,276 $50,000 $511,504.00 Inc in Property Inc in Prop Prem $90,000,000 $462,733.47 Utility $62,370,298 525,000 $207,111.00 Inc in Property Inc in Prop Prem $62,370,298 $183,077.00 Inland Marine $15,805,308 50 Inc in Prop Prem $17,035,695 $25,000 $36,709.00 Inc in Property $50K Emp/ $5OK Crime Forg /$1OK Theft $1,000 $2,533.00 $50,000 $960.00 $3,307.00 PROPERTY TOTAL $721,148.00 $636,976.00 $649,117.47 General Liability $2,000,000 /per occur 5200,000 $213,439.00 $2,000,000 /per occur 5200,000 $44,597.00 $2,000,000/ 5200,000 $209,900.00 $6,000,000 /Agg No Aggregate Limit max. $6,000,000. Public Off /Empl Practices $2,000,000 /per occur 5200,000 Inc in Gen Liab $4,000,000 /per occur 5200,000 $57,055.00 $2,000,000/ $200,000 Inc in Gen Liab $4,000,000 /Agg $4,000,000 /Agg No Aggregate Limit max. $6,000,000. Cyber Liability N/A N/A N/A $500,000 Inc in POL/EPLI N/A N/A N/A Law Enforcement Liab $2,000,000 /per occur $200,000 Inc in Gen Liab $2,000,000 /per occur $200,000 $89,431.00 $2,000,000 /per occur $200,000 Inc in Gen Liab $6,000,000 /Agg No Aggregate Limit $6,000,000 /Agg Auto Liability $100,000 5100,000 Inc in Gen Liab $2,000,000 /per occur $100,000 $38,117.00 Inc in Gen Liab Auto Physical Damage $100,000 $10,000 Inc in Gen Liab Per Schedule 510,000 $26,950.00 Inc in Gen Liab Workers Compensation ** General $500,000/ $123,586.00 General $500,000/ $134,494.00 General $500,000/ $129,656.00 Fire /Pol $850,000 Fire /Pol $500,000 Fire /Pol $850,000 LIABILITY & W/C TOTAL $337,025.00 $390,644.00 $339,556.00 GRAND TOTAL $1,058,173.00 $1,027,620.00 $988,673.47 *Package Deal The City of Boynton Beach, Florida HR/RM Department MEMORANDUM TO: Tim Howard, Finance Director FROM: Pam Webb, Risk Administration DATE: March 11, 2015 SUBJECT: Insurance Renewals After reviewing and concluding my study of the two insurance proposals from The Gehring Group and Arthur J. Gallagher. Here are the differences in policies for the upcoming year. A simple Excel sheet is attached. The Gehring Group's proposal is a package deal; therefore, should we separate any of the programs, there would be an increase in premium. There are some enhancements to this program such as; the General Liability there is no aggregate limit for any claims except the Public Officials and Employment Practices coverage, currently we have a $6,000,000 aggregate and the Self Insured Retention (SIR) is $500,000 for all employees compared to $500,000 (General Employees) and $850,000 (Fire and Police) for Workers Compensation coverage. One other enhancement this policy has is that any sewer back -up claims are covered up to $200,000 per incident. The City has averaged about $11,000 per year for sewer back -ups from 2012 to 2014. These enhancements, in my opinion, would not affect the City's program based on the claims history. I will admit the sewer back -up coverage is an advantage but not to the point of the overall savings with Arthur J. Gallagher. As for Arthur J. Gallagher, there is no change in coverages except the deductibles for the Property insurance were lowered to $25,000 from the past year with a decrease in premium coverage. After speaking with Rodney Lewis of The Gehring Group, the only separation they are capable of doing is the Property insurance and the Workers Compensation Insurance together with no change in premium. I suggest the City remains with the Arthur J Gallagher program since it is a 7% decrease in premium from last year's policy. Cc: Julie Oldbury, Director of Human Resources and Risk Management Julie Alibrandi, Finance /pw "Loss Prevention & Loss Control Through Proactive Strategies" City of Boynton Beach GEH RING A GROUP Property, Casualty & Workers' Compensation Insurance Evaluation I N S U R A N C E B R O K E R S I A C O N S U L T A N T S 2015/2016 Pro: ram Com • arison Current Layered Program Preferred Governmental Insurance Trust Policy SIR / Deductible Limits /TIV Premiums Carrier SIR / Deductible Limits /TIV Premiums $97,932,276 AOP $25,000 AOP $141,406,998 AOP Property (Incl Contents) $50,000AOP $10,000,000 Named Storm $ 511,504 PGIT• 5%TIV; min. $35,000 NS Including Wind / Named Storm $ 599,307 $62,370,298 Included in Utility Property 525,000 AOP 530,000,000 Named Storm $ 207,111 PGIT• Included in Property Included in Property Property premium Included in Included in Boiler & Machinery $ 5,000 Included in Property property premium PGIT• Included in Property $ 50,000,000 Property premium Included in Included in Business Income /Extra Expense 72 hours $ 3,488,713 property premium PGIT• Included in Property $ 3,488,713 Property premium Included in Inland Marine $ 15,805,308 property premium PGIT• Included in Property $ 17,035,695 $ 36,709 Included in Included in Inland Marine Hull and P &I $ 206,500 property premium PGIT• Included in Inland Marine $ 206,500 Marine premium 550,000 - Employee Theft $50,000 - Employee Theft 550,000 - Forgery $50,000 - Forgery Crime / Employee Dishonesty $ 1,000 510,000 - Theft of Money $ 2,533 PGIT• $ 1,000 $50,000 - Theft of Money $ 960 Sub Total $ 721,148 $ 636,976 $2,000,000 per occ. / 52,000,000 per occ. / General Liability $ 200,000 $6,000,000 agg. $ 213,439 PGIT• $ 200,000 No Aggregate Limit $ 44,597 Public Officials Liability/ $2,000,000 per occ. / Included in General $4,000,000 per claim / Employment Practices Liability $ 200,000 $4,000,000 agg. Liability PGIT•• $ 200,000 $4,000,000 agg. $ 57,055 Included in Cyber Liability N/A N/A N/A PGIT•' $ - $500,000 POL/EPLI $2,000,000 per occ. j Included in General $2,000,000 per occ. / Law Enforcement Liability $ 200,000 $6,000,000 agg. Liability PGIT• $ 200,000 No Aggregate Limit $ 89,431 Included in General 52,000,000 per occ. / Automobile Liability $ 100,000 $ 100,000.00 Liability PGIT' $ 100,000 No Aggregate Limit $ 38,117 Included in General Automobile Physical Damage $ 10,000 $ 100,000.00 Liability PGIT` $ 10,000 Per Schedule $ 26,950 Sub Total $ 213,439 $ 256,150 - - - Payroll: $48,020,728 5500,000 General EE; Excess Workers' Compensation $850,000 Public Safety Statutory $ 123,586 PGIT* 5 500,000 Statutory $ 134,494 Sub Total $ 123,586 $ 134,494 Total Annual Premium* $ 1,058,173 $ 1,027,620 $ Increase /Decrease $ (30,553) % Increase / Decrease -3 % POL/EPLI is written on a claims -made basis Wind /Named Storm limitof $141,406,99 $10,000,000 Named Storm limit for Municipal Property; $30,000,000 Named Storm limite for Utility Property coverage: valuation basis Replacement Cost; Coverage Form Special Property and Boiler & Machinery are provided as blanket limits "Premium is being offered with a 2 -year Rate guarantee •• POL/EPLI is written on a claims -made basis. Premium is being offered with a 2.5 -year Rote guarantee Alternate Excess Workers Compensation proposal with 5750,000 SIR for $111,521 $5,000 Annual Safety Grant $200,000 No -Fault Sewer Back -Up CITY OF BOYNTON BEACH Prepared For • 100 E. Boynton Beach Blvd. P.O. Box 310 Boynton Beach, FL 33435 Presented: 3/03/2015 IL-+ P - Arthur J. Gallagher & Co. Judith A. Arenz CPCU Area Senior Vice President Tom Gill CIC, CRM, MBA Area Assistant Vice President Agnes Polom, AAI Senior Account Manager Arthur J. Gallagher Risk Management Services, Inc. 2255 Glades Road, Suite #200E Boca Raton, FL 33431 © 2015 Arthur J. Gallagher & Co. www.ajg.com City of Boynton Beach • Executive Summary Arthur J. Gallagher Risk Management Services, Inc. and your Service Team have prepared this proposal of insurance for renewal of your program effective April 1, 2015. • Property - Municipality - Utility • Public Entity Excess Liability • Excess Workers' Compensation • Crime Insurance • Inland Marine • Boiler & Machinery • Tenant User Liability (TULIP) State of the Property Market - Florida PROPERTY MARKET CONDITIONS • There continues to be plenty of competition and new insurance carriers entering the Catastrophic Property market place. This year there are a few new carriers entering the CAT wind market. • Many carriers have reduced their dependency on reinsurance. Consequently, these reinsurance companies • are deploying their capacity into the direct insurance marketplace generating additional capacity. • There is a lot of capital coming into Bermuda and it is finding its way into the marketplace via creative reinsurance structures or risk taking vehicles supported by fronting insurance carriers. So this capacity is either replacing reinsurance carriers or adding to the direct marketplace as a new carrier. • RMS is coming out with version 15 in the spring which will continue to bring down modeling metrics that should push towards lower pricing. • Carriers are more receptive to improving policy deductibles, terms and conditions. • All these items are making the market more favorable for the insureds PROPERTY CARRIER REACTIONS • Carriers will want to hold renewals, and we will be oversubscribed on shared and layered accounts. Insureds will have choices to take new capacity or maintain long term relationships. • Overall, we believe average pricing could be pushed down 5% - 15 %. However, each account will be evaluated independently and will stand on its own. Pricing will depend on how aggressively the account was priced over the years and how the terms have been structured. • Carriers are going to be more flexible to give improved terms and coverages, and deductibles in order to hold market share and premium. • Arthur). Gallagher Risk Management Services, Inc. City of Boynton Beach Executive Summary (Cont.) FLORIDA EXCESS WORKERS' COMPENSATION The Workers' Compensation market continues to be challenging and is in a state of transition. Rate increases are common. The days of Workers' Compensation carriers living with poor loss history because they write other lines are dwindling, as other lines are losing rate. The shifting of the market is being driven by regional /package carriers, geographic location and class of business. We expect to see continued unrest for the foreseeable future. Excess Workers' Compensation continues to have underwriters focusing on emergency services and an appropriate attachment point given the impact of various state presumptive injury laws. We are seeing higher minimum attachment points applied by some underwriter. In addition, updated concentration modeling has impacted some carriers and their capacity deployment decisions. OTHER NOTEWORTHY TRENDS • Drone usage • Public Health resource constraints at the County /State level • Increased frequency of severity in certain judicial areas and around certain claim types (civil rights / excess force) • Wrongful incarceration claims • Death in custody claims • Issue around the aging of public entity infrastructures • Some markets looking to impose BI /PD aggregates onto their forms • Sexual abuse /molestation claims • • Concussive injury in sports within education and parks and recreation context is also gaining momentum, with some carriers mandating exclusionary language, and also addressing coverage trigger implications with losses occurring over multiple policy years CYBER /PRIVACY LIABILITY This product continues to be highly publicized due to significant breaches, regulatory enforcement actions with hefty fines and penalties, and constant hacker threats. New carriers continue to enter the space and longer term players are updating and broadening their policy forms. 2015 Goals and Objectives • Total Cost of Risk - the number one priority is to control cost and develop a program that maintains a reasonable level of coverage to meet the requirements of the Stafford Act and protect the City's assets. • Provide a full proposal on all lines of coverage • Apply updated values per appraisals • Continue broad Casualty coverage including Automobile Liability and Physical Damage • Review options for increased crime coverage • Continue to attend claim reviews and provide the City with Claims Advocacy and assistance in the management of claims • Provide Loss Control support as needed 11111 Arthur j. Gallagher Risk Management Services, Inc. 3 City of Boynton Beach s Executive Summary (Cont.) Recommended Renewal Program: 2012 -2013 2013 -2014 2014 -2015 2015 -2016 Municipal Property: Loss Limit $100,001,133 $101,782,806 $90,000,000 $90,000,000 • Named Storm Limit $10,000,000 $10,000,000 $10,000,000 $10,000,000 Utilities Property: Loss Limit $91,772,153 $91,772,153 $63,370,298 $62,370,298 • Named Windstorm Limit $30,000,000 $30,000,000 $30,000,000 $30,000,000 Exposures Total Insurable Values: Municipality $100,001,133 $101,782,806 $97,932,276 $99,705,041 Utilities $91,772,153 $91,772,153 $62,370,298 $62,370,298 Premium Municipality $644,000.00 $669,822.00 $500,000.00 $458,148.00 Taxes, Assessments and Fees $45,876.00 $46,207.00 $11,504.00 $4,585.47 Municipality Total $689,876.00 $716,029.00 $511,504.00 $462,733.47 Utilities $278,276.00 $292,119.00 $197,000.00 $177,300.00 Taxes & Fees $6,724.00 $6,723.00 $6,111.00 $1,777.00 III Engineering Fee $4,000.00 $4,000.00 $4,000.00 $4,000.00 Utility Total $289,000.00 $302,842.00 $207,111.00 $183,077.00 Public Entity Excess Liability $175,500.00 $220,200.00 $210,700.00 $209,900.00 Excess Workers' Compensation Included $105,188.00 $123,586.00 $129,656.00 Required Fees, Taxes & $2,281.50 $2,862.60 $2,739.10 -0- Assessments Public Entity Excess Liability $177,781.50 $328,250.60 $337,025.10 $339,556.00 Total Crime Insurance $2,500.00 $2,500.00 $2,500.00 33,307 Required Fees, Taxes & $32.50 $32.50 $32.50 -0- Assessments Crime Insurance Total $2,532.50 $2.532.50 $2,532.50 $3,307.00 Grand Total $939,190.00 $1,349,654.10 $1,058,172.60 $988,673.47 Miscellaneous Lines 10/1/13- 10/1/14 10/1/14- 10/1/15 Boiler & Machinery Total $7,334.11 $Ol Inland Marine - Hull Total $7,264.20 $7,264.22 TULIP Total $5,111.00 $0 Notes of Importance: (1)Broker Fee paid to Ascension is included (2)Premium annualized to include Automobile Liability and Physical Damage (3)Miscellaneous Lines renew on October 1, 2014. (4)Boiler and Machinery is now covered within the municipal and utility property programs (5)TULIP is now an online program paid for directly by the user • Arthur J. Gallagher Risk Management Services, Inc. 4 City of Boynton Beach Executive Summary (Cont.) PROPERTY PROGRAM Program rates for the property insurance program have been decreased in accordance with market trends and our negotiations. • The Municipality renewal reflects a 8.3% premium reduction • The Utility rates reflect an overall premium decrease of 10% • The Utility inspection fee remains at $4,000 • The Hurricane Cat Fun assessment has been removed and reduces cost by 1.3% • Wind Model changes will not occur until Version 15 is released. Exposures remain as expiring. CASUALTY PROGRAM The excess casualty program through BRIT is quoted with a minimal change in premium. We secured a competing indication from Safety National. They are your current excess workers' compensation carrier and are targeting casualty lines. Their indication was $210,000, however, they cannot offer the automobile physical damage that is currently included in your BRIT excess program. Brit Global Specialty USA SIR Package clients receive access — at no cost— to the TEAM platform, a self- directed risk management LMS platform which purchased individually would cost approximately $30,000 annually. The TEAM • platform is a robust online resource offering: • Unlimited training courses from a list of approximately 135 courses covering areas such as Employment Practices Liability, fundamental of safety, leave- related laws, workplace risk management, human resources, and student related risks. • Weekly training bulletins and articles about new and /or updated matters of interest. • Comprehensive model handbook. • Self- guided human resources assessments. • Built -in management tools (LMS) to track and run reports on usage (e.g., completion of training). • Customizability to: have your logo on the landing page... upload your own policies and procedures...determine the access levels for all users. • Much, much more — all free of charge to you — just contact your retail producer or Brad Bohler to establish a secure user name and password or visit www.britinsuance.com /team for additional information. EXCESS WORKERS COMPENSATION Safety National has provided a renewal premium with a 4% rate increase. This is in line with the marketplace. The carrier has completed an onsite presentation of their value added services highlighted below. Safety National - Value -Added Risk Control Services Through our MAP Client Services, Safety National offers various resources to help policyholders improve their risk management, analysis and prevention efforts. Typically provided complimentary to the policyholder, these services and resources are designed to help improve workplace safety, prevent injuries before they occur and measure /analyze the success of risk management programs. We are constantly adding risk control offerings designed specifically for the public sector. S:ERVE S:ERVE is an online driver simulation and curriculum created to educate law enforcement, firefighters and EMS • personnel to drive at their safest in emergency response scenarios to help reduce collision rates. Arthur J. Gallagher Risk Management Services, Inc. 5 City of Boynton Beach Executive Summary (Cont.) CRIME The program will offer a renewed three year rate agreement with annual renewals. We are providing some options to increase your limit. We have seen a significant increase in incidents over the last few years throughout the public sector. Crime Coverage Options OPTION COVERAGE DESCRIPTION PREMIUM 1 As expiring $3,307 2 Include Computer Fraud and Funds Transfer Fraud at $50,000 with $1,000 $3,723 deductible 3 Increase Employee Theft limit to $100,000 with $1,000 deductible $3,850 4 Include Employee Theft, Computer Fraud and Funds Transfer Fraud at $100,000 $4,396 limit MISCELLANEOUS LINES • Miscellaneous Lines expire in October of 2015. Recommendation: Arthur J. Gallagher recommends renewal of the City's insurance program with consideration for the options provided for the Crime Insurance coverage. Thank you again for allowing us to be your partner in this placement. Judith A. Arenz March 03, 2015 • ArtiNt J: Gallagher Risk Management Services,,,Jnc. 6 • • City of Boynton Beach • Table of Contents Executive Summary 2 Our Team and Commitment Service Team 9 Your Program Named Insured 11 Market Place Review 12 Location Schedule 13 Program Details 14 Property - Municipality - Ironshore Specialty Insurance Co, (More) 14 Property - Municipality - Lexington Insurance Company 14 Property - Utilities - ACE American Insurance Company 18 Public Entity Casualty Package - Comprehenive General Liability - Underwriters at Lloyd's London 22 Public Entity Casualty Package - Automobile Liability - Underwriters at Lloyd's London 25 Public Entity Casualty Package - Public Officials - Underwriters at Lloyd's London 26 Public Entity Casualty Package - Employee Benefits Liability - Underwriters at Lloyd's London 28 Public Entity Casualty Package - Law Enforcement Activity - Underwriters at Lloyd's London 29 Excess - Workers Compensation - Safety National Casualty Corporation 32 Crime - Hanover Insurance Company 34 Premium Summary 36 • Payment Plans 38 Coinsurance Illustration 39 Changes / Developments 40 Proposal Disclosures Proposal Disclosures 42 Insurance Company Ratings and Admitted Status 44 Client Signature Requirements Surplus Lines Notice - Florida 47 Coverages For Consideration 48 Client Authorization to Bind Coverage 49 Appendix Claims Reporting By Policy 51 Bindable Quotations & Compensation Disclosure Schedule 52 • 7 City of Boynton Beach Our Team and Commitment • City of Boynton Beach Service Team Judith A. Arenz has primary service responsibility for your company. We operate using a team approach. Your Service Team consists of: NAME / TITLE PHONE / ALT. PHONE EMAIL Judith A. Arenz, CPCU 561 - 998 -6780 Judy_Arenz @ajg.com Area Senior Vice President Tom Gill, CIC, CRM, MBA 561- 998 -6812 Area Assistant Vice President Tom_Gill @ajg.com Agnes Polom 561- 998 -6799 Agnes_Polom @ajg.com Client Service Supervisor Aimee Bell 561 - 998 -6817 Client Service Associate Senior aimee_ bell @ajg.com Dave Marcus 305 - 639 -3131 Area Chairman Dave_Marcus @ajg.com Andrea Tomasek 561- 998 -6757 Andrea_Tomasek@ajg.com Claims Advocate Arthur J. Gallagher Risk Management Services, Inc. Main Office Phone Number: (561) 995 -6706 • • Arthur J. Gallagher Risk Management Services, Inc. 9 City of Boynton Beach Your Program • City of Boynton Beach Named Insured NAMED INSURED LINE OF COVERAGE City of Boynton Beach All Lines of Coverage included in this proposal Note: Any entity not named in this proposal may not be an insured entity. This may include partnerships and joint ventures. • A rthur J. Gall Risk Management Services, Inc. 11 City of Boynton Beach Market Place Review We approached the following carriers in an effort to provide the most comprehensive and cost effective insurance program. INSURANCE COMPANY LINE OF COVERAGE RESPONSE ACE American Insurance Property - Utilities Recommended Quote Company Lexington Insurance Company Property - Municipality Recommended Quote Hanover Insurance Company Crime ' Recommended Quote Underwriters at Lloyd's London Public Entity Casualty Package Recommended Quote Safety National Casualty Excess - Workers Compensation Recommended Quote Corporation The premium indicated is an estimate provided by the market. The actual premium and acceptance of the coverage requested will be determined by the market after a thorough review of the completed application. • • 12 City of Boynton Beach Location Schedule LINE OF COVERAGE LOCATION ADDRESS Propert■ Multiple Locations Per Statement of Values on file with carrier 1 ill III Arthur J. Gallagher Risk Management Services, Inc. 13 City of Boynton Beach Program Details Coverage: Property - Municipality Carrier: Lexington Insurance Company Policy Period: 4/1/2015 to 4/1/2016 The following is a general summary of the Insuring Agreement. Refer to actual policy form for complete terms and conditions. DESCRIPTION LIMIT BASED ON TIV Policy Limit This is a Scheduled Policy $90,000,000 $99,705,041 VALUATION Replacement Cost as respects Real and Personal Property Actual Loss Sustained as respects Business Income and as further describes in the policy form / Per the Lexington Insurance Company Manuscript Domestic Property Policy Form (PR8371) Perils Covered: TYPE DESCRIPTION • All Risks of Direct Physical Loss or Damage including ' Special Form Perils Flood, Earth Movement and Equipment Breakdown /Boiler & Machinery and as further described in the approved policy form Deductibles /SIR: Each claim for loss or damage under this policy shall be subject to a per occurrence deductible amount of $50,000, unless a specific deductible shown below applies Flood Per Occurrence Except; $100,000 5% of the total values at the time of loss at each location involved in the loss, subject to a $1,000,000 minimum of - Per Occurrence Earth Movement - Per Occurrence $100,000 Windstorm - Per Occurrence, except 5% Of the total insurable values at the time of loss or damage at each location involved in $100,000 the loss or damage arising out of a Named Storm subject to a minimum of - $100,000 Any one occurrence Equipment Breakdown: $50,000 If two or more deductible amounts provided in this policy apply to a single occurrence, the total to be deducted shall not exceed the largest deductible applicable unless otherwise stated in the policy. However, if: 1. The Time Element deductible and another deductible apply to a single Occurrence, then the Company shall apply both deductibles to the Occurrence; and 2. Covered Loss or Damage by Flood arises out of a Named Storm, then the Company shall apply the Flood deductible or the Named Storm deductible, whichever is greater. • Arthur J. Gallagher Risk Management Services, Inc. 14 City of Boynton Beach Program Details (Cont.) Additional Coverage: DESCRIPTION SUBLIMIT Sub- limits / Per Occurrence (are part of not in addition to the policy limit): Per Occurrence and Annual Aggregate for the peril of Earth Movement $5,000,000 Per Occurrence and Annual Aggregate for the peril of Flood except; Per Occurrence and Annual Aggregate for the peril of Flood occurring wholly or partially within Special Flood Hazard Areas (SFHA), areas of 100 -Year Flooding, as defined by the $5,000,000 Federal Emergency Management Agency (FEMA); The Per Occurrence and Annual Aggregate Limit for the Peril of Flood shall not exceed $5,000,000. Per Occurrence for the peril of Named Storm (a storm that has been declared by the National Weather Service to be a Hurricane, Typhoon, Tropical Cyclone, Tropical Storm or Tropical Depression) in Florida, regardless of the number of Coverages, Locations or Perils involved including but not limited to, all Flood, (however caused) wind, wind gusts, storm surges, tornados, cyclones, hail or rain. In the event covered Loss or Damage by Flood $10,000,000 arises out of a Named Storm, the maximum amount the Company will pay per Occurrence for all such Loss or Damage by Flood shall be the Sublimits of Liability for Flood. However, if Flood is not covered, the maximum amount the Company will pay per Occurrence for all such Loss or Damage by Named Storm shall exclude Loss or Damage by Flood. The Per Occurrence Limit for the Peril of Named Storm shall not exceed $10,000,000. Per Occurrence for Debris Removal or 25% of loss, whichever is less $2,500,000 • Per Occurrence for Accounts Receivable $500,000 Per Occurrence for Civil or Military Authority 30 Days Per Occurrence and Annual Aggregate for Biological and Chemical Terrorism Not Covered Per Occurrence for Contingent Time Element $1,000,000 Per Occurrence for Demolition and Increased Cost of Construction: Demolition Coverage A (For the loss in value of the undamaged portion of the building as a $1,000,000 consequence of enforcement of an ordinance or law that requires demolition of undamaged parts of the same building) Per Occurrence for Demolition and Increased Cost of Construction: Demolition Coverage B (For the cost to demolish and clear the sire of undamaged parts of $1,000,000 the same building, as a consequence of enforcement of an ordinance or law that requires demolition of such undamaged property) Per Occurrence for Demolition and Increased Cost of Construction: Demolition Coverage C (For the increased cost of repair or reconstruction of the damaged . and undamaged property on the same or another site, limited to the cost that would have been incurred in order to comply with the minimum requirements of such law or ordinance $1,000,000 regulating the repair of reconstruction of the damaged property of the same site. However, this Company shall not be liable for any increased cost of construction loss unless the damaged property is actually rebuilt or replaced) Per Occurrence for Electronic Data and Media $500,000 Per Occurrence for the peril of Equipment Breakdown $50,000,000 Per Occurrence for Spoilage $100,000 Per Occurrence for Errors and Omissions $1,000,000 Extended Period of Indemnity 180 Days • Per Occurrence for Extra Expense Included 15 City of Boynton Beach Program Details (Cont.) Additional Coverage: DESCRIPTION SUBLIMIT Per Occurrence for Fine Arts $500,000 Per Occurrence for Fire Brigade Charges $25,000 30 Days subject to Per Occurrence for Ingress / Egress Maximum of $1,000,000 Per Occurrence for Leasehold Interest $500,000 Per Occurrence and Annual Aggregate for Limited Pollution Coverage $25,000 Per Occurrence for Miscellaneous Unnamed Locations $1,000,000 Per Occurrence for Newly Acquired Property for a period of 90 days, if not reported to the $2,000,000 Company in that 90 day period then coverage ceases. Per Occurrence for Ordinary Payroll Not Covered Per Occurrence for Professional Fees Not Covered Per Occurrence for Service Interruption. A qualifying period of 48 hours applies to this $25,000 coverage Per Occurrence for Transit $25,000 Per Occurrence for Valuable Papers and Records $500,000 • Per Occurrence for Parked Auto Physical Damaae, excluding over the road exposure $500,000 Per Occurrence for Outdoor Property, except $10,000 for Trees, Plants, Shrubs, subject to $50,000 $250 for any one tree, shrub or plant Per Occurrence and Annual Aggregate for Mold as a result of a named peril $500,000 Per Occurrence for Property of Others $10,000 Per Occurrence for Signs $20,000 Per Occurrence for Inventory and Appraisal of Loss $2,500 Per Occurrence for Reward reimbursement $5,000 Per Occurrence for Lock replacement $1,000 Per Occurrence for Fire Extinguisher Recharge $2,500 Per Occurrence for Property off Premises $25,000 Per Occurrence for Personal Effects per person $5,000 BOILER & MACHINERY Per occurrence for the peril of Equipment Breakdown $50,000 Time Element $3,488,713 Contingent Time Element $1,000,000 Hazardous Substances Included Demolition and Increased Cost of Construction Demolition Coverage B $1,000,000 Demolition Coverage C $1,000,000 • lrthur J. G illaghcr Risk \lanagcmcnt Services, Inc. 16 City of Boynton Beach Program Details (Cont.) Additional Coverage: DESCRIPTION SUBLIMIT Electronic Data and Media $500,000 Spoilage $100,000 Extra Expense $250,000 Newly Acquired Property $2,500,000 Service Interruption $25,000 Upgrade to Green Excluded Exclusions include, but are not limited to: DESCRIPTION Earth Movement, Flood, War Exclusion Government Action, War & Terrorism Exclusion Nuclear Hazard, Power Failure Economic Sanctions Exclusion Other Significant Terms and Conditions /Restrictions: • DESCRIPTION 1. Policyholder Disclosure Notice of Terrorism Insurance Coverage (Applicable to Certified and Non - Certified Acts) 2. Terrorism Exclusion Endorsement applies if coverage is rejected or Terrorism Premium Charge Endorsement with Exclusion for Biological and /or Chemical Terrorism applies if coverage is accepted 3. 110% Margin Clause 4. Economic Sanctions Endorsement PR4225 (07/13) 5. Lexington Historical Endorsement applies for Old Boynton Beach High School Cancellation: 90 Days Notice of Cancellation except 10 days for non - payment of premium Any New locations in AK, CA, FL, HI and TX will be underwritten and rated in accordance with our guidelines at the time we are requested to add them 35% Minimum Earned Premium Binding Requirements: DESCRIPTION Subject To Receipt Of Signed Statement of Values Subject To Receipt Of Signed terrorism Disclosure Premium $462,733.48 ESTIMATED PROGRAM COST $458,148.00 Citizens Assessment $4,581.48 FIGA $4.00 Terrorism /TRIA (Optional) $5050.00 A J. Gallagher Risk Management Services, Inc. City of Boynton Beach Program Details (Cont.) Coverage: Property - Utilities Carrier: ACE American Insurance Company Policy Period: 4/1/2015 to 4/1/2016 The following is a general summary of the Insuring Agreement. Refer to actual policy form for complete terms and conditions. DESCRIPTION LIMIT $ 62,020,298 Property Damage $ 100,000 Business Interruption Policy Limit $ 250,000 Extra Expense $ 62,370,298 Total Insured Value VALUATION This company's Liability for loss under this policy for real and personal property (excluding stock) shall not exceed the smallest of the following amounts: 1. The amount of this policy. • 2. The replacement cost of property or any part thereof, identical with property described herein, at the same location and intended for the same occupancy and use. 3. The amount actually and necessarily expended in repairing or replacing the property described herein, or any part thereof, at the same location, or another location, and intended for the same occupancy and use. 4. Actual Cash Value if the property is not repaired or replaced within 2 years. 5. Time Element Coverages: Actual Loss Sustained 6. Agreed Amount with coinsurance waived Perils Covered: TYPE DESCRIPTION All Risks of Direct Physical Loss or Damage — covering Special Form Perils Property Damage, Business Interruption, Extra Expense and Boiler & Machinery • Arthur/. Gallagher Risk Management Services, Inc. 18 City of Boynton Beach • Program Details (Cont.) Deductibles /SIR: COVERAGE AMOUNT All deductibles listed below are per occurrence except with respect to coverage provided under the Boiler & Machinery (if provided) which shall be any one accident Property Damage Except $100,000 Well Houses $10,000 Flood: 5% of the Property Damage Total Insured Value of the damaged locations involved in the occurrence, subject to a minimum of $500,000 Named Windstorm: 5% of the Property Damage Total Insured Value of the locations involved in the occurrence, subject to a minimum of $500,000 Time Element (Including but not limited to): l Business Interruption - Per Occurrence 5 Days Extra Expense - Per Occurrence 5 Days Off- Premises Power - Per Occurrence 5 Days As respects real and personal property, all claims for loss, damage or expense arising out of any one occurrence shall be adjusted as one claim and from the amount of each such adjusted claim there shall be deducted the sum stated on the Declarations Page Deductibles for Property Damage and Time Element shall be applied separately. • DESCRIPTION SUBLIMIT Sublimits are per occurrence unless shown otherwise. The sublimits below are part of and not in addition to the Policy Limit of Liability. Sublimits are 100% and are subject to Starr Tech percentage participation. Named Windstorm $30,000,000 Earth Movement $5,000,000 Flood including Storm Surge $5,000,000 Flood (Zone A or V) and all subzones including Storm Surge $1,000,000 Automatic Coverage $1,000,000 Demolition /Increased Cost of Construction $1,000,000 Course of Construction $500,000 25% of the loss (whichever is greater) for Debris Removal $500,000 Contractors Equipment $500,000 Unnamed Locations $500,000 EDP Media and Equipment $250,000 Expediting Expense $250,000 Off- Premises Power $250,000 • Transit $250,000 Temporary Removal of Property $250,000 • Off Premises Foam and Fire Fighting Expense $100,000 Business Interruption $100,000 19 City of Boynton Beach Pro ram Details (Cont. DESCRIPTION SUBLIMIT Sublimits are per occurrence unless shown otherwise. The sublimits below are part of and not in addition to the Policy Limit of Liability. Sublimits are 100% and are subject to Starr Tech percentage participation. Extra Expense $250,000 Pollution Cleanup -Real and Personal Property _ � $100,000 Boiler & Machinery Sublimits: Ammonia Contamination $100,000 Expediting Expense $100,000 Hazardous Substance $100,000 Water Damage $100,000 Consequential Damage $100,000 Endorsements include, but are not limited to: DESCRIPTION a.Common Policy Conditions _ • b. Commercial Property Conditions c. OFAC Endorsement d. Agreed Amount- PO Endorsement e. Agreed Amount- BI Endorsement f. Authorities Endorsement. g. Automatic Coverage (Newly Acquired) Endorsement h. Biological or Nuclear Exclusion i. Boiler & Machinery Endorsement j. Contractors Equipment Endorsement k. Data Distortion /Corruption Exclusion I. Earth Movement Endorsement m. Electronic Data Processing Endorsement n. Extra Expense Endorsement o. Flood Endorsement p. Increased Cost of Construction & Demolition Endorsement q. Millennium Endorsement r. Mold Exclusion s. Political Risk Exclusion t. Replacement Cost Endorsement u. Terrorism Endorsement (If Coverage is Accepted) • 20 City of Boynton Beach • ._ Program Details (Cont.) Endorsements include, but are not limited to: DESCRIPTION v. Terrorism Exclusions (If Coverage Declined) w. Transit Endorsement x. Unnamed Location Endorsement y. Wind (Named Storms) Definition Exclusions include, but are not limited to: DESCRIPTION Earth Movement Exclusion Flood Exclusion Government Action Exclusion War Exclusion Nuclear Hazard, Power Failure • Date Related Losses Earth Movement Annual Aggregate (Excluding Califomia) Transmission and Distribution lines located beyond 1,000 feet of any insured premises are excluded Mold Exclusion Political Risk Exclusion Terrorism Exclusions (if coverage declined) Biological or Nuclear Exclusion Data Distortion /Corruption Exclusion Binding Requirements: DESCRIPTION Subject To Receipt Of Signed Statement of Values to be provided within 30 days of effective date Signed TRIA /Terrorism Premium $183,077.00 ESTIMATED PROGRAM COST $177.300.00 Engineering Fee $4,000.00 FL Surcharges $1,777.00 TRIA/Terrorism (Optional) $3,107.00 • .Arthur I. Gallagher Risk N{anagemmnt Services, Inc. 21 City of Boynton Beach Program Details (Cont.) Coverage: Public Entity Casualty Package — General Liability Carrier: Underwriters at Lloyd's London Policy Period: 4/1/2015 to 4/1/2016 COVERAGE FORM TYPE RETROACTIVE DATE General Liability Occurrence Not Applicable Employee Benefits Liability Sexual Harassment Claims Made 4/1/2013 Sexual Abuse Claims Made Coverage: Should you elect to change carriers (if a new retro- active date is provided) or non -renew this policy, a supplemental extended reporting endorsement may be available subject to policy terms and conditions. You must request the extended reporting period in writing to the carrier within (Refer to Policy Form) days of the expiration date. The cost of this extended reporting period is [Refer to Policy Form]% of the annual premium and is fully earned. The extended reporting period extends only to those claims that occurred prior to the expiration date and would have been covered by the policy. Claims must be reported to the carrier within (Refer to Policy Form]) days of the end of the policy period. The extended reporting period does not increase the limits of liability and is subject to all policy terms, conditions and exclusions Coverage: DESCRIPTION LIMIT Limit of Liability (All Coverages Combined) $2,000,000 Per Occurrence excess the self- insured retention Aggregate Limit (All Coverages Combined) $6,000,000 Annual Aggregate Premises Medical Payments: Excluded Additional Coverage: DESCRIPTION LIMIT Sexual Harassment: $2,000,000/$6,000,000 Sexual Abuse: $2,000,000/$6,000,000 DEDUCTIBLE / SIR: SIR AMOUNT Self- Insured Retention - Per Occurrence $200,000 Definition of Claim & Defense Costs: DESCRIPTION Refer to attached policy form • Arthur J. Gallagher Risk Management Services, Inc. City of Boynton Beach Program Details (Cont.) Incident or Claim Reporting Provision: DESCRIPTION Refer to attached policy form Extended Reporting Period (ERP) Options *: DESCRIPTION Refer to attached policy form *If ERP coverage is desired, then that request must be in writing to the carrier. Endorsements include, but are not limited to: DESCRIPTION Public Entity Package Wording (11/11) - Occurrence Indemnification Form Coverage includes but not limited to: • DESCRIPTION • Premises /Operations • Product/Completed Operations • Host and /or Liquor Liability • Volunteer Workers • Personal Injury and Advertising Injury • Fire Legal Liability • EMT's /Paramedic Liability • Employees and Volunteers as Assureds • Incidental Medical Malpractice • Pollution from Hostile Fire • Property in the Care, Custody, Control • Non -Owned Aircraft • 23 City of Boynton Beach Program Details (Cont.) Exclusions include, but are not limited to: DESCRIPTION • Assault and Battery, except to protect persons or property • Ownership, loading or unloading, maintenance, or use of watercraft over 26 feet in length, except operations performed by independent contractors • Ownership, loading or unloading, maintenance, or use of aircraft except operations performed by independent contractors • Property owned by the insured • Asbestos - related claims • Pollution Liability • Nuclear Liability • ERISA • War • Inverse Condemnation, Eminent Domain, Adverse Possession or Condemnation Proceedings • Terrorism • Mold 411 1111 Arthur]. Gallagher Risk Management Services, Inc. 24 City of Boynton Beach Program Details Coverage: Public Entity Casualty Package - Automobile Liability Carrier: Underwriters at Lloyd's London Policy Period: 4/1/2015 to 4/1/2016 DESCRIPTION LIMIT Limit of Liability: $2,000,000 / per Occurrence per occurrence excess the self- insured retention / No Aggregate Limit for Auto Physical Damage: 1 $1,000,000 Deductibles /SIR: SIR AMOUNT Liability SIR $200,000 Physical Damage SIR $10,000 Coverage: • DESCRIPTION Permissive Users Owned Autos Hired / Non —Owned Autos Endorsements / Exclusions include, but are not limited to: DESCRIPTION • Property owned by the insured • Employee bodily injuries covered under any Workers' Compensation or similar law • Racing, demolition contest, or stunting activities • Medical Payments • Uninsured /Underinsured Motorists • No Fault • Terrorism • Mold • Flood & Surface Water • Earthquake • Windstorm • 25 City of Boynton Beach Program Details Coverage: Public Entity Casualty Package - Public Officials Carrier: Underwriters at Lloyd's London Policy Period: 4/1/2015 to 4/1/2016 Form Number: Public Entity Package Wording — Claims -Made (11/11) COVERAGE FORM TYPE RETROACTIVE DATE Public Officials Claims Made 4/1/2013 Coverage: DESCRIPTION LIMIT Limit of Liability (All Coverages Combined): $2,000,000 Per Occurrence excess the self- insured retention Aggregate (All Coverages Combined): $4,000,000 Annual Aggregate COVERAGE INCLUDES Subject to the following sublimits / annual aggregates which are part of and not in addition to the combined Section • IV limit and annual aggregate: • Errors & Omissions $2M /$4M Annual Aggregate • Employment Practices Liability $2M /$4M Annual Aggregate • Sexual Harassment Liability $2M /$4M Annual Aggregate • Sexual Abuse Liability $2M /$4M Annual Aggregate Definition of Claim and Defense Cost: DESCRIPTION Refer to attached policy form Incident or Claim Reporting Provision: DESCRIPTION Refer to attached policy form Extended Reporting Period (ERP) Options *: DESCRIPTION Refer to attached policy form *If ERP coverage is desired, then that request must be in writing to the carrier. • Arthur J. Gallagher Risk Management Services, Inc. 26 City of Boynton Beach • Program Details (Cont.) - Exclusions include, but are not limited to: DESCRIPTION • Intentional breach of contract • Loss resulting from a wrongful act committed prior to the retroactive date • Any claim brought as a counter claim or cross claim by an assured against any other assured • Any claim based upon or attributable to the rendering or failure to render any opinion, treatment, or service unless acting within the scope of their duties as an assured • Any claim arising out of any pending or prior litigation or hearing, as well as future claims arising out of any pending or prior litigation or hearing • Claim, demands or actions seeking relief or redress in any form other than monetary damages • Terrorism • Mold Coverage: Public Entity Casualty Package — Employee Benefits Liability Carrier: Underwriters at Lloyd's London Policy Period: 4/1/2015 to 4/1/2016 Form Type: COVERAGE FORM TYPE RETROACTIVE • DATE I Employee Benefits Liability Public Entity Package Wording Claims -Made (11/11) Claims Made 4/1/2013 1 Coverage: DESCRIPTION LIMIT Limit of Liability: $2,000,000 per occurrence excess the self- insured retention Aggregate Limit: $4,000,000 annual aggregate Deductibles /SIR: COVERAGE AMOUNT Self- Insured Retention: $200,000 per occurrence • Arthur J. Gallagher Risk Management Services, Inc. 27 City of Boynton Beach • Program Details (Cont.) Definition of Claim & Defense Costs: DESCRIPTION Refer to attached policy form Incident or Claim Reporting Provision: DESCRIPTION Refer to attached policy form Extended Reporting Period (ERP) Options *: DESCRIPTION Refer to attached policy form *If ERP coverage is desired, then that request must be in writing to the carrier. 1111 Exclusions include, but are not limited to: DESCRIPTION • Any negligent acts, errors, or omissions which are dishonest, fraudulent, criminal, or malicious. • Bodily Injury, Personal Injury, or Property Damage. • Any claim based upon the insureds failure to comply with ERISA or any similar federal, state, or local law. • Any claim based upon failure of investments, including stocks and bonds, to perform as represented by the insured. • Loss resulting from any negligent acts, errors or omissions committed prior to the retroactive date. • Terrorism • Mold • 28 City of Boynton Beach • ,— Program Details Coverage: Public Entity Casualty Package - Law Enforcement Activity Carrier: Underwriters at Lloyd's London Policy Period: 4/1/2015 to 4/1/2016 Form Number: Public Entity Package Wording (11/11) - Occurrence Form Type: COVERAGE FORM TYPE Law Enforcement Activities Occurrence DESCRIPTION LIMIT Per Occurrence Limit $2,000,000 Per Occurrence excess the self- insured retention Policy Aggregate Limit $6,000,000 Annual Aggregate COVERAGE INCLUDES • Sexual Harassment $2M /$6M 41) • Sexual Abuse $2M /$6M Deductibles /SIR: COVERAGE AMOUNT Self- Insured Retention: $200,000 Per Occurrence Defense Cost: DESCRIPTION • Within the Limit of Liability • Reimbursement of Defense Costs Incurred Prior to Denial or Declination of Coverage: D $10,000 Ground Up any one Assured D $20,000 Aggregate Per Occurrence D $50,000 Annual Aggregate III Arthur J. Gather FOIL Mana mennt Services, Inc _ 29 City of Boynton Beach Program Details (Cont.) Exclusions include, but are not limited to: DESCRIPTION • Any claim or Suit for Bodily Injury, Property Damage or Personal Injury including any award of attorney's fees and costs resulting from: - Any knowing and intentional violation of any subsection of Title 42 of the U.S. Code, including but not limited to 42 U.S.0 1981 thru 42 U.S.C. 1989 and 42 U.S.C. 1997 - Any knowing and intentional deprivation of any rights protected under the United States Constitution or the Constitution of any State, Territory or Protectorate of the United States - Any Act which is not reasonably related to the execution and /or enforcement of the law - Any Act committed with the knowledge and intent to cause Bodily Injury, Property Damage or Personal Injury or which could reasonably be expected to cause Bodily Injury, Property Damage or Personal Injury unless the act of the Assured was reasonably necessary to lawfully prevent injury to persons or damage to Property However, this Exclusion shall not apply to any vicarious liability on the part of the Named Assured arising solely out of an act by any other Assured resulting from Law Enforcement Activities and excluded herein, but this provision applies only to the liability of the Named Assured to pay any settlement, verdict or judgment, providing that the sole liability imposed on the Named Assured does not arise from any contractual duty to indemnify an Assured. • Liability arising out of the ownership, maintenance or use, including loading or unloading, of watercraft 26 feet and over • Damage to or destruction of Property of the Assured • • Liability arising out of the ownership, maintenance, loading or unloading, use or operations of any aircraft, airfields, runways, hangars, buildings or other properties in connection with aviation activities • Any obligation for which the Assured may beheld liable under any Workers' Compensation, unemployment compensation disability benefits law, employers liability or under any similar law or to Bodily Injury to any employee or to any liability for indemnity or contribution brought by any party for Bodily Injury to any employee • The cost of any investigation, disciplinary or criminal proceedings against an individual Assured except that the Underwriters may, at their own option and expense, associate counsel in the defense of any such investigation, criminal or disciplinary proceeding. Should the Underwriters elect to associate counsel, such elections shall not constitute a waiver or estoppel of any rights the Underwriters may have pursuant to the terms, conditions, exclusions and limitations of this policy • Any claim arising from Wrongful Acts except as provided under this Section for Discrimination or Violation of Civil Rights arising out of Law Enforcement Activities • Any Claim arising out of an intentional breach of contract • Arthur Gallagher Risk Management Services, Inc. 30 City of Boynton Beach Program Details (Cont.) Binding Requirements: DESCRIPTION Subject to Signed Authorization to Bind Subject to Signed TRIA accept/reject form Subject to Signed UM /UIM rejection form prior to binding Terms & Conditions: DESCRIPTION Quote based on the 2013 Public Entity wording. Gallagher Bassett is the appointed Third Party Administrator. Section 11 Automobile Physical Damage - Valuation is RCV for scheduled vehicles on file with underwriters. Mold coverage is excluded. Cancellation At binding, the Assured commits to a Minimum Earned Premium of 50% of the gross premium. There are no flat cancellations allowed. • Lloyds of London (Brit) Free Risk Management Services: Brit package clients receive access - at no cost - to the BRIT Insurance TEAM risk management platform at Brit's expense (a regular value of at least $30,000 annually). The BRIT Insurance TEAM platform is a robust online resource offering: • Unlimited web -based training courses from a list of approximately 135 courses covering areas such as employment practices liability, leave- related laws, workplace risk management, human resources, and youth - related risks. • Weekly training bulletins and articles about new and /or updated matters of interest. • Comprehensive model handbook. • Self- guided human resources assessments. Built -in management tools to track and run reports on usage (e.g., completion of training). • Customizability to: have your logo on the landing page ... upload your own policies and procedures ...determine the access levels for all users. • Much, much more - all free of charge to you - just visit www.britinsurance.com /team These services are an extension of Brit's partnership with our clients. We recognize the need for customized risk management tools, and we provide the BRIT Insurance TEAM platform to you with our compliments to help you manage risk. Premium $209,900.00 ESTIMATED PROGRAM COST $209,900.00 Terrorism (Optional) $2,130.00 • Arthur J. Gallagher Risk Management Services, Inc. 31 • City of Boynton Beach Program Details Coverage: Excess - Workers Compensation Carrier: Safety National Casualty Corporation Policy Period: 4/1/2015 to 4/1/2016 DESCRIPTION LIMIT Part I - Workers Compensation — Statutory Employers Liability Part 11 - Employers Liability - $1,000,000 aggregate per accident Deductibles /SIR: SIR AMOUNT Per Occurrence $500,000 Each Accident, except $850,00 for Police & Firefighters Ex • osure: STATE DESCRIPTION EXPOSURE RATE PER $100 FL Estimated Total Payroll: $48,020,728 Excess Rate Per $100 of • Payroll - 0.27 Exclusions include, but are not limited to: DESCRIPTION Punitive, exemplary or compensatory damages Liability assumed under a contract Bodily Injury to an employee while employed in violation of law Bodily Injury intentionally caused or aggravated by you Self- Insurers Assessments Intentional Torts Punitive or Exemplary Damages Bodily Injury to an employee while employed in violation of law Damages arising out of coercion, criticism, demotion, discipline, defamation, harassment or termination of any employee Liability assumed under contract • 32 City of Boynton Beach Program Details (Cont.) Other Significant Terms and Conditions /Restrictions: DESCRIPTION b ct to final audit at end of policy term on gross payroll le o a au p cy to based o g oss pay ll o Includes Claims Expense as part of Toss Cancellation by Named Insured is subject to the Minimum and Deposit Premium — 100% fully earned 60 day cancellation notice required of Named Insured and /or carrier, except 5 day notice by carrier for nonpayment of premium Incidental Longshoremen's and Harbor Workers Compensation Act Maritime Coverage — No Know Exposure Voluntary Compensation Same Communicable Disease Foreign Voluntary WC & EL including defined Endemic Disease Endorsements mandated by the coverage state(s) will automatically be added to your policy regardless of whether they are shown in the above schedule. In addition, a change in an endorsement form number may occur as a result of state filling requirements /updates arising subsequent to this quote. • Binding Requirements: DESCRIPTION Subject to Adjustment at audit Subject to Signed Application Subject to receipt, review and acceptance of information contained in SNCC's Vehicle Supplemental Application form prior to binding Premium $129,656.00 ESTIMATED PROGRAM COST $129,656.00 Terrorism (Included) *Subject to Audit: Annually 1110 Arthur I. Gallagher Risk Management Services, Inc. 33 City of Boynton Beach Program Details Coverage: Crime Carrier: Hanover Insurance Company Policy Period: 4/1/2015 to 4/1/2016 Form Type: COVERAGE FORM TYPE Crime Discovery DESCRIPTION LIMIT Employee Theft Per Loss (including Faithful performance) $50,000 Schedule Excess for City Manager & Finance Director $450,000 Forgery or Alteration $50,000 Money & Securities (In /Out) $10,000 / $10,000 Deductibles /SIR: COVERAGE AMOUNT • I Deductible $1,000 Exclusions include, but are not limited to: DESCRIPTION Third Party Employee Dishonesty Government Action Exclusion Accounting or Arithmetic Errors Voluntary Parting of Property Loss in which the existence of such loss is only proved by a profit and loss comparison or inventory records Any theft or criminal act committed by a partner of the insured Loss Due to Employee Dishonesty Date Related Losses Partners Indirect Loss Legal Expenses Nuclear War & Similar Actions Employee canceled under prior insurance Inventory shortages • 34 City of Boynton Beach Program Details (Cont.) Exclusions include, but are not limited to: DESCRIPTION Loss caused by any employee required by law to be individually bonded Damages for which you are legally liable as a result of - The deprivation or violation of the civil rights of any person by an employee or - The tortious conduct of any employee except conversion of property of other parties held by you in any capacity Other Significant Terms and Conditions /Restrictions: DESCRIPTION 90 day Notice of Cancellation 45 day Notice of Non - renewal Premium $3,307.00 ESTIMATED PROGRAM COST (Per Year) $3,307.00 3 Year Annual Installment Premium Option to Include Computer Fraud and Funds Transfer $3,723.00 Fraud Each at $50,000 with $1,000 Deductible • Alternative 0 • tions DESCRIPTION LIMIT Employee Theft Per Loss (including Faithful performance) $100,000 Schedule Excess for City Manager & Finance Director $400,000 Forgery or Alteration $100,000 Money & Securities (In /Out) $10,000 / $10,000 3 Year Annual Installment Premium $3,850.00 Option to Include Computer Fraud and Funds Transfer $4,396.00 Fraud Each at $100,000 with $1,000 Deductible 411 • 35 City of Boynton Beach Premium Summary The estimated program cost for the options are outlined in the following table: EXPIRING PROGRAM PROPOSED PROGRAM(S) LINE OF COVERAGE ESTIMATED COST RECOMMENDED Property - Premium Lexington Insurance $500,000.00 Lexington Insurance $458,148.00 Municipality Srchrg & Asmnt 1 $11,500.00 $4,581.48 Total Fees $4.00 $4.00 Estimated Cost 1 $511,504.00 $462,733.47 Property - Utilities Premium ACE American $197,000.00 ACE American $177,300.00 Srchrg & Asmnt Insurance Company $6,107.00 Insurance Company $1,777.00 Total Fees (ACE Group) $4,004.00 (ACE Group) $4,000.00 Estimated Cost $207,111.00 $183,077.00 Public Entity Premium Underwriters at Lloyd's, $210,700.00 Underwriters at $209,900.00 Casualty Package Srchrg & Asmnt London (BRIT) $2,739.10 Lloyd's London (BRIT) N/A Total Fees N/A Estimated Cost $213,439.10 $209,900.00 Excess - Workers Premium Safety National $123,586.00 Safety National 129,656.00 Compensation Srchrg & Asmnt Casualty Corporation Included Casualty Corporation Included Estimated Cost $123,586.00 (Safety National $129,656.00 TRIA Premium Included Group) Included Crime Premium Hanover Insurance $2,500.00 Hanover Insurance $3,307.00 Srchrg & Asmnt Company $32.50 Company (Hanover N/A Total Fees $2,532.50 Insurance Companies) $3,307.00 Estimated Cost - Total Estimated Program Cost $1,058,172.60 $988,673.47 Arthur J. Gallagher Risk Management Services, Inc. • • 36 . . • . City of Boynton Beach Premium Summary Quote From ACE American Insurance Company (ACE Group) is valid until 4/1/2015 Gallagher is responsible for the placement of the following lines of coverage: Quote From Ironshore Specialty Insurance Co (Ironshore Insurance Ltd), etc... is valid until 4/1/2015 Property - Municipality Quote From Hanover Insurance Company (Hanover Insurance Companies) is valid until 4/1/2015 Property - Utilities Quote From Underwriters at Lloyd's London (Underwriters at Lloyd's London) is valid until 4/1/2015 Public Entity Casualty Package Quote From Safety National Casualty Corporation (Safety National Group) is valid until 4/1/2015 Excess - Workers Compensation Quote From Lexington Insurance Company (American International Group, Inc) is valid until 4/1/2015 Crime It is understood that any other type of exposure /coverage is either self - insured or placed by another brokerage firm other than Gallagher. If you need help in placing other lines of coverage or covering other types of exposures, please contact your Gallagher representative. Arthur J. Gallagher Risk Management Services, Inc. City of Boynton Beach Payment Plans CARRIER LINE OF COVERAGE PAYMENT METHOD Lexington Insurance Company Property - Municipality Agency Bill ACE American Insurance Company (ACE Group) Property - Utilities Agency Bill Underwriters at Lloyd's London (BRIT) Public Entity Casualty Agency Bill Package Safety National Casualty Corporation (Safety Excess- Workers Agency Bill National Group) Compensation Hanover Insurance Company (Hanover Insurance Crime j Agency Bill Companies) � • • Arthur I. (; d L u Iicr Risk \ Iii 1icmcnt Services, Inc. City of Boynton Beach Coinsurance Illustration Coinsurance Formula: Insurance Carried = Insurance Required x Loss - Deductible = Settlement Example of Coinsurance formula applied to a hypothetical loss situation: Property Value = $1,000,000 Coinsurance Amount = 80% Deductible = $500 Insurance Required = $800,000 (80% of $1,000,000) Insurance Carried = $400,000 Loss Incurred = $200,000 Settlement determined by applying the coinsurance formula: $400,000 (Insurance Carried) x $200,000 (Loss) - $500 (Deductible) = $99,500 Settlement $800,000 (Insurance Required) Note: If the property in the above example is insured for the full insurance required ($800,000), the insured will recover $199,500. In the above example, the insured will suffer a $100,000 penalty for not being insured to the proper limit. • Arthur,. Gallagher Risk Management Services, Inc. 39 City of Boynton Beach Changes / Developments It is important that we be advised of any changes in your operations that may have a bearing on the validity and /or adequacy of your insurance. The types of changes that concern us include, but are not limited to, those listed below: 1. Changes in any operation such as expansion to other states or new products. 2. Mergers and /or acquisition of new companies. 3. Any newly assumed contractual liability, granting of indemnities, or hold harmless agreements. 4. Circumstances which may require increased liability insurance limits. 5. Any changes in fire or theft protection, such as the installation of or disconnection of sprinkler systems, burglar alarms, etc. This includes any alterations to same. 6. Immediate advice of any changes to scheduled equipment such as contractors' equipment, electronic data processing, etc. 7. Property of yours that is in transit, unless we have previously arranged for the insurance. 8. Any changes in existing premises including vacancy, whether temporary or permanent, alterations, demolition, etc. Also, any new premises either purchased, constructed, or occupied. ❑ No Changes and /or Developments Signature: Title: � � • Date: INFORMATION ONLY \rt I. (halla her Ria: Al Scn ices, Inc. 4) City of Boynton Beach Proposal Disclosures City of Boynton Beach Proposal Disclosures The following disclosures are hereby made a part of this proposal. Please review these disclosures prior to signing the Client Authorization to Bind or e-mail confirmation. Proposal IMPORTANT: The proposal is an outline of certain terms and conditions of the insurance proposed by Disclaimer the insurers, based on the information provided by your company. It does not include all the terms, coverages, exclusions, limitations and /or conditions of the actual policy contract language. The insurance policies themselves must be read for those details. Policy forms for your reference will be made available upon request. We will not be operating in a fiduciary capacity, but only as your broker, obtaining a variety of coverage terms and conditions to protect the risks of your enterprise. We will seek to bind those coverages based upon your authorization; however, we can make no warranties in respect to policy limits or coverage considerations of the carrier. Actual coverage is determined by policy language, so read all policies carefully. Contact us with questions on these or any other issues of concern. Compensation One of the core values highlighted in The Gallagher Way states, "We are an Open Society," and our Disclosure open society extends to the compensation Gallagher receives. In general, Gallagher may be compensated as follows: 1. Gallagher Companies are primarily compensated from the usual and customary commissions or fees received from the brokerage and servicing of insurance policies, annuity contracts, guarantee contracts and surety bonds (collectively "insurance coverages ") handled for a clients account, which may vary from company to company and insurance coverage to insurance coverage. As permitted by law, Gallagher companies occasionally receive both commissions and fees. • 2. In placing, renewing, consulting on or servicing your insurance coverages, Gallagher Companies may participate in contingent and supplemental commission arrangements with intermediaries and insurance companies. Contingent commissions provide for additional contingent compensation if underwriting, profitability, volume or retention goals are achieved. Such goals are typically based on the total amount of certain insurance coverages placed by Gallagher with the insurance company and /or through the intermediary, not on an individual policy basis. Some insurance markets, including Gallagher -owned intermediaries, have modified their commission schedule with Gallagher, resulting in an increase in some commission rates. These additional commissions, commonly referred to as "supplemental commissions" are known as of the effective date, but some insurance companies are paying this commission later and apart from when commission is normally paid at policy issuance. As a result, Gallagher may be considered to have an incentive to place your insurance coverages with a particular insurance company. Note: Upon request, your Gallagher representative can provide more specific market information regarding contingent and supplemental commission related to your insurance coverage. 3. Gallagher Companies may also receive investment income on fiduciary funds temporarily held by them, such as premiums or return premiums. 4. Gallagher Companies may access other facilities, including wholesalers, reinsurance intermediaries, captive managers, underwriting managers and others that act as intermediaries for both Gallagher and other brokers in the insurance marketplace. Gallagher Companies may own some of these facilities, in whole or in part. If such a facility was utilized in the placement of a client's account, the facility may have earned and retained customary brokerage commission or fees for its work. 5. Gallagher assists its customers in procuring premium finance quotes and unless prohibited by law may earn compensation for this value added service. 6. From time to time, Gallagher may participate in insurance company promotional events or training and development that insurers provide for Gallagher employees. 7. Gallagher strives to find appropriate coverage at a competitive price for our customers. In order • Arthur J. Gallagher Risk Management Services, Inc. 42 City of Boynton Beach Proposal Disclosures (Cont.) to achieve these goals, we gather and analyze data about our customers and their insurance coverage. This data and the resulting analytical tools help us better understand the current marketplace, more accurately predict future trends and offer tailored solutions to our customers. The data may also be provided to insurers pursuant to consulting service agreements from which we earn fees. If you have specific questions about the compensation received by Gallagher and its affiliates in relation to your insurance placements, please contact your Gallagher representative for more details. In the event you wish to register a formal complaint regarding compensation Gallagher receives from insurers or third parties, please send an e-mail to Compensation_Complaints @ajg.com or send a letter to: Compliance Officer Arthur J. Gallagher & Co. Two Pierce Place, 20th Floor Itasca, IL 60143 TRIA/TRIPRA If this proposal contains options to purchase TRIA /TRIPRA coverage, the proposed TRIA /TRIPRA Disclaimer program may not cover all terrorism losses. While the amendments to TRIA eliminated the distinction between foreign and domestic acts of terrorism, a number of lines of coverage excluded under the amendments passed in 2005 remain excluded including commercial automobile, burglary and theft insurance; surety insurance, farm owners multiple perils and professional liability (although directors and officers liability is specifically included). If such excluded coverages are required, we recommend that you consider purchasing a separate terrorism policy. Please note that a separate terrorism policy for 111 these excluded coverages may be necessary to satisfy loan covenants or other contractual obligations. TRIPRA includes a $100 billion cap on insurers' aggregate liability. The TRIPRA program increases the amount needed in total losses by $20 million each calendar year before the TRIPRA program responds from the 2015 trigger of $100 million to $200 million by the year 2020. TRIPRA is set to expire on December 31, 2020. There is no certainty of extension, thus the coverage provided by your insurers may or may not extend beyond December 31, 2020. In the event you have loan covenants or other contractual obligations requiring that TRIA/TRIPRA be maintained throughout the duration of your policy period, we recommend that a separate "Stand Alone" terrorism policy be purchased to satisfy those obligations. Property These property values were obtained using a desktop Property Estimator software operated by non - Estimator appraisal professionals. These property values represent general estimates which are not to be Disclaimer considered a certified appraisal. These property values include generalities and assumptions that may produce inaccurate values for specific structures. Actuarial The information contained in this proposal is based on the historical loss experience and exposures Disclaimer provided to Arthur J. Gallagher Risk Management Services, Inc.. This proposal is not an actuarial study. Should you wish to have this proposal reviewed by an independent actuary, we will be pleased to provide you with a listing of actuaries for your use. • Arthur J. Gallagher Risk Management Services, Inc. 43 City of Boynton Beach Insurance Company Ratings and Admitted Status PROPOSED INSURANCE COMPANIES A.M. BEST'S ADMITTED / NON - RATING ADMITTED ACE American Insurance Company A ++ XV Admitted Lexington Insurance Company A XV Admitted Hanover Insurance Company A XIV Admitted Safety National Casualty Corporation A X Admitted If the above indicated coverage is placed with a Non - Admitted Carrier, the carrier is doing business in the state as a surplus lines or non - admitted carrier. As such, this carrier is not subject to the same regulations which apply to an admitted carrier nor do they participate in any insurance guarantee fund applicable in that state. *The above A.M. Best Rating was verified on the date the proposal document was created. Guide to Best Ratings Rating Lewis and Categodes CA " 0 • Y Financial Size Categories A + +. A+ Superior (MUM of Reported Policyholders' Surplus Plus Condfiena1 Reserve Frrmas Excels r. FSC I Up to 1,000 FSC IX 250,000 t0500,000 E + +, E+ G5o_ FSC II 1,000 to 2.000 FSC X 500,000 to 750.000 B. 6- Fair FSC III 2,000 to 5.000 FSC XI 750,000 to 1,00,000 C++. C+ _^ FSC IV 5,000 to 10,000 FSC XII 1,000,000 to 1,250.O00 C. C- _ _+ FSC V 10,000 t o 25,000 FSC X I I I 1,250,000 to 1,500,000 p FSC VI 25,000 to50.000 FSC XIV 1,500,000 to2,000,000 E Ur. -er Regulatory Supervisior FSC VII 50.000 to lOO,000 FSC XV 2,000.000 or more • = I Li uid rtion FSC VIII 100.000 to 250,000 E Suspended Best's Insurance Reports , published annually by A.M. Best Company, Inc., presents comprehensive reports on the financial position, history, and transactions of insurance companies operating in the United States and Canada. Companies licensed to do business in the United States are assigned a Bests Rating which attempts to measure the comparative position of the company or association against industry averages. A Bests Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. It is not a warranty of a company's financial strength and ability to meet its obligations to policyholders. View the A.M. Best Important Notice: Best's Credit Ratings for a disclaimer notice and complete details at http: / /www.ambest.com /ratinqs /notice. Best's Credit Ratings are under continuous review and subject to change and /or affirmation. For the latest Best's Credit Ratings and Best Credit Reports (which include Best Ratings), visit the A.M. Best website at http: //www.ambest.com. See Guide to Best's Credit Ratings for explanation of use and charges. Copies of the Best's Insurance Reports for carriers listed above are also available upon request of your Gallagher representative. Bests Credit Ratings reproduced herein appear under license from A.M. Best and do not constitute, either expressly or impliedly, an endorsement of (Licensee's publication or service) or its recommendations, formulas, criteria or comparisons to any other ratings, rating scales or rating organizations which are published or referenced herein. A.M. Best is not responsible for transcription errors made in presenting Best's Credit Ratings. Best's Credit Ratings are proprietary and may not be reproduced or distributed without the express written permission of A.M. Best Company. Gallagher companies use A.M. Best Company's rating services to evaluate the financial condition of insurers whose policies we propose to deliver. Gallagher companies make no representations and warranties concerning the solvency of any carrier, nor does it make any representation or warranty conceming the rating of the carrier which may change. • Arthur j. Gallaghet Oft.Ataiiiseinent Services, It1c. 44 City of Boynton Beach • Insurance Company Ratings and Admitted Status (Cont.) GUIDE TO BEST'S FINANCIAL STRENGTH RATINGS A Best's Financial Strength Rating is an independent opinion 01 an insurers financial strength and ability to meet its ongoing insurance policy and contract obligations. The rating is based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength. operating pedonnanre and business profile. Best's Financial Strength Ratings Rating Descriptor Definition A +., A+ Superior Assigned to companies that have. in our opinion. a superior ability to meet their ongoing insurance obli gations. u • A, A- Excellent Assigned to companies that have. in our opinion. an excellent ability to meet their ongoing insurance obligations. • B + +, B+ Good Assigned to companies that have. in our opinion. a good ability to meet (heir ongoing insurance oblige: lions. B, 6 - Fair Assigned to companies that have in our opinion. a fair ability to meet their ongoing insurance obliga- tions. Financial strength is vulnerable to adverse changes in underwriting and economic conditions. C + +, C+ Marginal Assigned to companies that have. in our opinion. a marginal ability to meet their ongoing insurance obli- gations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions. o . car opinion. a weak ability to meet their ongoing oblige- • C, C- Weak ak Ass s ned to com nies that have in Fi y o i no insurance lions. Financial strength is very vulnerable to adverse changes in underwriting and economic conditions. N Assigned to companies that have. in our opinion. a poor ability to meet their ongoing insurance obliga- > D Pcxx bars. Financial strength is extremely vulnerable to adverse changes in underwriting arxf economic con • ditions. 13rxler Assigned to companies (and possibly their subsidiarieslalliliates) placed under a sigriticant toms of E Regulatory regulatory supervision, control or restraint - including cease and desist orders, conservatorship or robe- Supervision bilitation. but not liquidation - that prevents conduct of normal, ongoing insurance operations. F In Liquidation Assigned to companies placed in liquidation by a court of law or by a forced liquidation. Suspenc - Assigned to rated companies when sudden and significant events impact operations and rating implica lions carrot be evaluated due to a lack of timely or adequate inlorrnation: or in cases where continued maintenance of the previously published rating opinion is in violation of evolving regulatory require- ments. Rating Modifiers Modifier Descriptor Definition i i Urxler Review fixlicates the rating may change in the near term. typically within six months. Generally is event driven. with positive. negative or developing implications. p ° i Public Data Indicates rating assigned to insurer that chose not to participate in A.M. Best's interactive rating process. (Discontinued in 2010) Syndicate Indicates rating assigned to a Lloyd's syndicate. - Rating Outlooks Indicates potential direction of a Best's Financial Strength Rating over an intermediate term. generally defined as 12 to 36 months. Positive Indicates possible rating upgrade clue to favorable tinanciaVmarket trends relative to the current rating level. Negative Indicates possible rating downgrade due to unfavorable financial/market trends relative to the current rating level. Stable Indicates low likelihood of a rating charge due to stable financial/market trends. Under Review Implications Indicates the potential direction of a Best's Financial Strength Rating that is in Under Review status based on information currently available. Positive Indicates there is a reasonable likelihood the company's rating wit be raised as a result of A.M. Best's analysis of a recent event. Negative Indicates here is a reasonable likelihood the company's rating will be lowered as a result of A.M. Best's analysis of a recent event. Developing Indicates there is uncertainty as to the final rating outcome. but there is a reasonable likelihood the company's rating wdl change as a result of A.M. Best's analysis of a recent event. Not Rated Designation NH: Assigned to companies that are not rated by AM. F3es1. Rating Disclosure A Best's Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. The ratings are not assigned to specific insurance policies or contracts and do not address any other risk. including. but not limited to. an insurer's claims - payment policies or procedures; the ability of the insurer to dispute or deny claims payment on grounds of misrepresentation or fraud; or any specific liability contractually borne by the policy or contract holder. A Best's Financial Strength Rating is not a recommendation to purchase. hold or terminate any insurance policy. contract or any other financial obligation issued by an insurer. nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser. In arriving at a rating decision. A.M. Best relies on third -party audited financial data and/or other information provided to it. While this intorrnation is believed to be reliable. A.M. Best does not independently verify the accuracy or reliability of the information. For additional details. see A.M. Best's Terms of Use at www.ambest.com. • Best's Financial Strength Ratings are distributed via press release and/or the A.M. Best websile at www.ambesf.com and are published in the Credit Rating Actions section of Best's Journalr.. Best's Financial Strength Ratings are proprietary and may not be reproduced without permission. Copyright © 2014 by AM. Best Company. Inc. Version 080114 L BEST • 43 City of Boynton Beach Client Signature Requirements • SURPLUS LINES DISCLOSURE and ACKNOWLEDGEMENT At my direction, (name of insurance agency) has placed my coverage in the surplus lines market. As required by Florida Statute 626.916, I have agreed to this placement. I understand that superior coverage may be available in the admitted market and at a lesser cost and that persons insured by surplus lines carriers are not protected by the Florida Insurance Guaranty Association with respect to any right of recovery for the obligation of an insolvent unlicensed insurer. I further understand the policy forms, conditions, premiums, and deductibles used by surplus lines insurers may be different from those found in policies used in the admitted market. I have been advised to carefully read the entire policy. There is no liability on the part of, and I have no cause of action against, my agent for placing coverage in the surplus lines market. CITY OF BOYNTON BEACH Named Insured C 4411 ,01 A- 1- 31a3I� Signature of In d's Authorized Representative pate LEXINGTON INS CO / LLOYDS OF LONDON Name of Excess and Surplus Lines Carrier PROPERTY / CASULATY Type of Insurance 04/01/2015 Effective Date of Coverage APPROVED AS TO FORM: ♦ � � .4 - ♦k / 4 -,, P` 4 RNEY City of Boynton Beach Coverages For Consideration Overview • A proposal for any of the coverages can be provided. • The recommendations and considerations summarized in this section are not intended to identify all exposures. • Since Gallagher does not handle your complete insurance program, these recommendations only reflect items within our scope of responsibility. Other Coverage Considerations • Cyber Risk The above coverage may not necessarily represent the entirety of available insurance products. If you are interested in pursuing additional coverages other than those addressed in the coverage considerations included in this proposal, please list below: 11 • Arthur J. Gallagher Risk Management Services, Inc. 48 City of Boynton Beach Client Authorization To Bind Coverage After careful consideration of Gallagher's proposal dated 3/3/2015, we accept the following coverage(s). Please check the desired coverage(s) and note any coverage amendments below: LINE OF COVERAGE CARRIER ❑Accept ❑Reject Property - Municipality Lexington Insurance ❑Accept El Reject i TRIA Coverage Company ❑Accept ❑Reject Property - Utilities ACE American Insurance ❑Accept ❑Reject TRIA Coverage Company (ACE Group) ❑Accept ❑Reject j Package — Excess Liability Underwriters at Lloyd's ❑Accept ❑Reject TRIA Coverage London (BRIT) ❑Accept ❑Reject Excess- Workers Compensation Safety National Casualty TRIA Cannot be TRIA Coverage Corporation rejected Crime As Per Expiring - $3,307 ❑Accept ❑Reject Include Computer Fraud and Funds Transfer ❑Accept ❑Reject Fraud at $50,000 with $1,000 deductible - $3,723 Increase Employee Theft limit to $100,000 with Hanover Insurance ❑ Accept ❑ Reject $1,000 deductible - $3,850 Company Increased Limits Employee Theft & Computer ❑ Accept ❑ Reject Fraud and Funds Transfer Fraud at $100,000 limit - $4,396 Provide Quotations or Additional Information on the Following Coverage Considerations: Other Coverage Considerations ❑Yes ❑No Cyber Risk Note: Selecting the "Reject All or Accept All" option will override any selections that you have made above ❑Reject All ❑Accept All - Coverages for Consideration It is understood this proposal provides only a summary of the details; the policies will contain the actual coverages. We confirm the values, schedules, and other data contained in the proposal are from our records and acknowledge it is our responsibility to see that they are maintained accurately. We agree that your liability to us arising from your negligent acts or omissions, whether related to the insurance or surety placed pursuant to these binding instructions or not, shall not exceed $20 million, in the aggregate. Further, without limiting the foregoing, we agree that in the event you breach your obligations, you shall only be liable for actual damages we incur and t t you shall not be liable for any indirect, consequential or punitive damages. By: (1144 Spe ify: owner, partner or orate officer L arisse eJe tk r)-e- Date: 3/2 , s Print Name Arthur J. Gallagher Risk Management Services, Inc. 49 City of Boynton Beach Appendix • City of Boynton Beach Claims Reporting By Policy PROPERTY When and where do you report a claim? Claims are to be reported as soon as practicable to: PROPERTY — MUNICIPALITY Email:apolom @ajg.com PROPERTY - UTILITIES Mr. Jim Jezewski, Vice President and Claims Manager Starr Technical Risks Agency, Inc. Property Claims Departent 399 Park Avenue, 9 Floor New York, NY 10016 Tel: (646) 227 -6348 Fax: (631) 685 -3061 Email: iim.iezewski @cvstarrco.com Mr. Will Wood, Assistant Vice President Tel: (404) 946 -1436 Fax: (404) 946 -1498 Email: william.wood @cvstarrco.com CRIME When and where do you report a claim? Claims are to be reported immediately and reported directly to: Agnes Polom at Arthur J. Gallagher • Risk Management Services, Inc. EXCESS PUBLIC ENTITY When and where do you report a claim? Claims are to be reported immediately and reported directly to: BRIT Insurance Services, Inc. Email: USA.claims @britinsurance.com EXCESS WORKERS' COMPENSATION When and where do you report a claim? Claims are to be reported immediately and reported directly to: Safety National 1832 Schuetz Road St. Louis, MO 63146 Fax: 314-995-3897 Email: first.report@safetynational.com Excess Reporting Requirements: The following injuries should be reported immediately: • Fatalities • Paraplegics and quadriplegics • Serious burns, defined as 2nd or 3rd degree burns involving 25% or more of the body • Brain injury • Spinal cord injury • Amputation of a major extremity • Any occurrence which results in a serious injury to two or more employees If you experience any difficulty in Phone, fax or email to Arthur J. Gallagher Risk Management reporting claims directly to carrier: Services, Inc. Phone: 561-998-6799 • Fax: 561-995-6708 Email: agnes polom @ajg.com Arthur:J. Gallagher Risk Management Services, Inc. 51 City of Boynton Beach Bindable Quotations & Compensation Disclosure Schedule Client Name: City of Boynton Beach WHOLESALER, MGA OR INTERMEDIARY ESTIMATED ANNUAL COMM. % OR COMMISSION % / AJG OWNED? COVERAGE(S) CARRIER NAME(S) PREMIUM 1 FEE NAME FEE $ YES /NO Property - Lexington Insurance $458,148.00 10% Risk Placement 5% Yes Municipality Company Services, Inc. ACE American Risk Placement Property - Utilities Insurance Company $177,300.00 5.5% 4.5% Yes (ACE Group) Services, Inc. Public Entity Underwriters at $209,900.00 10% N/A N/A No Casualty Package Lloyd's London BRIT Excess- Workers Safety National $129,656.00 10% N/A N/A No Compensation Casualty Corporation Public Entity Safety National $210,000.00 10% N/A N/A No Casualty Package Casualty Corporation Excluding Auto PD Crime Various Options Hanover Insurance $3,307.00 9% Arthur J Gallagher - 11% Yes presented at the Company AFR same Commission Some carriers pay Gallagher supplemental or contingent commissions in addition to the policy commission. Contingent commissions are typically contingent upon performance factors such as growth, profit, volume or retention, while supplemental commissions are not. These supplemental or contingent commissions may range from less than 1% up to 10% of the policy premium. Please refer to the Compensation Disclosure or contact your Gallagher representative for additional information. 1 *A verbal quotation was received from this carrier. We are awaiting a quotation in writing. The premium indicated is an estimate provided by the market. The actual premium and acceptance of the coverage requested will be, determined by the market after a thorough review of the completed application. ** A written quotation was received from this carrier. The premium indicated is an estimate provided by the market. The actual premium and acceptance of the coverage requested will be determined by the market after a thorough review of the completed application. 2 The commission rate is a percentage of annual premium excluding taxes & fees. Gallagher is receiving % commission on this policy. The fee due Gallagher will be reduced by the amount of the commissions received. 3 We were able to obtain more advantageous terms and conditions for you through an intermediary/ wholesaler. 4 * The non - Gallagher intermediary/wholesaler did not provide their compensation information for this proposal. The usual and customary compensation to a wholesaler/ intermediary ranges from 5% to 12 %, but we cannot verify that range is applicable in connection with this proposal. Arthur J. Gallagher Risk Management Services, Inc. •