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Home My WebLink About04/28/2022 PACKET - SPECIAL MEETING BEAUMONT TEXAS SPECIAL MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS CITY HALL 801 MAIN STREET APRIL 28,2022 5:00 PM AGENDA CALL TO ORDER * Roll Call • Public Comment: Persons may speak on scheduled agenda item 1 REGULAR AGENDA 1. Consider a resolution authorizing a contract for property insurance coverage for various city owned buildings and assets COMMENTS Public Comment(Persons are limited to 3 minutes) • Councilmembers/City Manager/City Attorney comment on various matters Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Kaltrina Minick at 880-3777. 1 April28,2022 Consider a resolution authorizing a contract for property insurance coverage for various city owned buildings and assets BEAUMONT TEXAS TO: . City Council FROM: Chris Boone,Interim City Manager PREPARED BY: Sharae N.Reed,City Attorney MEETING DATE: April 28, 2022 REQUESTED ACTION: Consider a resolution authorizing a contract for property insurance coverage for various city owned buildings and assets. BACKGROUND . Higginbotham, of Port.Arthur,is the City's broker of record for securing the City's property insurance. The proposed annual premium for Property, Equipment Breakdown,Terrorism and Agency Fee is based on a total insured value of$242,319,396. The cost of the policy for this year is$2,044,040.61,a$333,450.31 increase from last year's premium of$1,710,590.30. The net rate (per$100 valuation) increased by 24.61%, from$0.65 to $0.81. The increase in rate is attributed to a hardening commercial property market arid losses incurred by the City over the past few years. The policy renewal will be in effect from May 1,2022 to May 1, 2023. Companies providing insurance are layered with exposure limited to the amount of damage incurred. All risk coverage, including Flood and Earth Movement, is provided by AmRisc, LP, Velocity Risk Underwriters (Lloyds);'Starstone Specialty, First Specialty,AXIS Surplus Lines Insurance Company, Lloyds of London(Insurisk, LP), Arch Specialty, and RSUI Indemnity Insurance Company. Boiler and Machinery coverage is provided by Liberty Mutual Fire Insurance Company. Terrorism coverage is provided by Lloyd's of London. The deductibles per occurrence for the new policy are as follows: Deductibles $50,000 Per Occurrence as respects to All Other Perils, Except as noted below: Named Storm Wind &Hail: 2%of the Sum of the Stated Values for each Location(affected by loss) identified in the Statement of Values subject to$250,000 minimum Per Occurrence Wind Driven Precipitation: 2%of the Sum of the Stated Values for each Location(affected by loss) identified in the Statement of Values subject to$250,000 minimum Per Occurrence All Other Wind &Hail: $50,000 Per Occurrence Flood: $50,000 Per Occurrence, Except as noted below: MAXIMUM NFIP,whether purchased or not, for Locations in Zones prefixed with A or V;plus $100,000 Per Occurrence; Except 2% of the total insurable values at each location in the loss or damage in any one Occurrence, subject to a minimum deductible of$100,000 in any one Occurrence for Flood caused by, resulting from, or associated with a Named Windstorm. Earth Movement: $50,000 Per Occurrence FUNDING SOURCE General Fund RECOMMENDATION Approval of resolution. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute a contract for fire, extended coverage, flood and quake property insurance for the annual premium amount of $2,044,040.61 through Higginbotham, of Port Arthur, Texas, as broker, for all risk coverage, including Flood and Earth Movement provided by AmRisc, LP, Velocity Risk Underwriters (Lloyds), Starstone Specialty, First Specialty, AXIS Surplus Lines Insurance Company, Lloyds of London, (Insurisk, LP), Arch Specialty, and RSUI Indemnity Insurance Company effective May 1, 2022; boiler and machinery coverage provided'by Liberty Mutual Fire Insurance Company effective May 1, 2022; and, terrorism coverage provided by Lloyd's of London effective May 1, 2022. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 28th day of April, 2022. - Mayor Robin Mouton - f ., • tl f'.- f. t ;s it t :. -t h . Higghibotharn ra 7; Lead with Value$ and Value Leads, � z; > ti Aa ` . 1, 1t ,.. .: YY��tt,a .- y 4 - .: +y i Y * [ A...-:_ . I� { 1 y1.4 e111 R�1 • , t 4 ` `'f .' s, ^^''rrnn —11 ;:�`,Xl •Y +, i '';',I ' lr ` II" 4`t - . ,cJ Rfn A+ J# ` f 1 y� 1 CG t I r ri J A iT� , P f• I 1+ S'4Gj¢,, P µ , ' t f. • % _ _ r� r. { �f jYfi� i . . • ,_... ;.-.-':•.".1;• ::::,....:,..,:ti !..1,,.. . 4. -,t,,,,J ,.2,.. , , ?_ i -', _ • vat 4...,'.,' t "., r.o I z' r�`+`�^„y'rt pt�y t � Ci h Insurance t � Y Proposal r` { 2• L + k4 r L k Iy; C k i •Prepared for: , s • City Of Beaumont Y`l��`y -{n��" r Cis; (��y yY `L - lit��,d��{+1j7{,��],�tlta4'j il]Ll { s= r c t r '., tia!j37r 1a 5,rY, ,"jf !'(! wwwrl iiaambothain net . .I rr[ 1 , ywA Mc : ( t 5. ; IAA, •� ii K ',:,, .:1:.c."- -.,'.:.,.'.:;....,j,:,.:.c::.'-,,.:4.,,..-.-2-.:-=..:..,.,;'"..,..;.%..-;.-...:...?'..,;.:..'..,..1 I ";,t ` ` 4�c� !�a -:,t s`" `ti, ..t ..3 i ,, t' z�EF.•�r X .. ' u 4- A m ' 'i,sur ,.u. "^�Cl3 iv-Mr.4'A".,,- t` , d 3 �.... K r,.i '-1 a$ TABLE 'OF-�CO'N�4 E�N� S f r `� . }` t { 'r".'-° i:: - 7 ,q say 'yr- i . 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Core Service Team 3 Risk Management Team 4 Supplemental 5 HIG Service24 Flyer 6 Premium Summary 7 Market List and Response 8 Property 11 Equipment Breakdown - 16 Terrorism 19 Recommendations 22 Explanations are in general terms and do not change or replace the terms or conditions of the policies. 2 k YOUR ,BUSINESS`SINS.URANCE SERVICE TEAM - j _ � tCo� e� a � • Joe Bass, CIC Vice President, Business Insurance (409) 736-7939 jbass@higginbotham.net Eric Sims Associate (409) 736-7940 esims@higginbotham.net Heidi Ward, CISR Account Manager (409) 736-7922 hward@higginbotham.net PJ Hawthorne i Customer Service Representative (936) 755-5919 pjhawthorne@higginbotham.net � + i Explanations are in general terms and do not change or replace the terms or conditions of the policies. 3 RISK MANAGEMENT TEAM Vance Lee, CSP, ARM, CRM ;r. ,' I Troy Koonsman . i Managing Director of Risk Management Director of Claims Operations a (214)346-4122,vlee@higginbotham.net / -, '''' (817)347-7013, tkoonsman@higginbotham.net Michelle Jones, JD, CRIS, MLIS, CRM Jordan Zobel, ARM ,fir ; i11 i ' - Director of Contract Review (� ' , Associate Operations Manager/Risk ,,;� q ' `. (817)349-2306,mjones@higginbotham.net `�' -= Technology #' `.i. %''' (817)349-2303,jzobei@higginbotham.net Kathleen Bragg-Pebley, JD ;;" 4 Donna Dahlen ` ' Director of Coverage &Litigation .'i.-".4 . ; Regional Claims Leader ' (818)850-7788, ' (361)561-4280,ddahlen@higginbotham.net -.-"i kbra99-P Y@ 99�eble hi inbotham.net Christopher Geise, JD, CRIS .., James Reed, AIC F y s ' I Senior Contract Analyst f �''• Senior Claims Executive 817 349-2308,cgeise hi inbotham.net j °" ,� (817) @ gg' �'�=� (214)868-5757,freed@higginbotham.net Alan Ponder, CSP Laura Lesher )'?' A.V.P. —Senior Loss Control Consultant c, i`., I Claims Consultant -� (713)439-5224,aponder@higginbotham.net .i (903)434-4742,.Ilesher@higginbotham.net N Nina Howard Angela Gonzalez �;� Claims Coordinator Risk Technology Specialist l - = (409)723-5906,nhoward@higginbotham.net s 1 (713)888-3954,agonzalez@higginbotham.net A. Heather Garcia " Claims Reporting ..1 1 a, _r Risk Technology Specialist Available 24/7 at(844) 857-5899 (281)954-3210,hgarcia@higginbotham.net '~ And reportaclaim@higginbotham.net weekdays Explanations are in general terms and do not change or replace the terms or conditions of the policies. 4 - R 1 _ SUPPLEMENTALTOPOPOSAL !._-..� .__..—..d_...._-i�....._�e_'�.........e_�i..._...�._...�a�_...`._,..-.,.mob.....,x...r� w .a. �...�...r �_- __...._.e_..._......._.�4e._..:.�-r...m.a...-��.._...�.v.-..�+-..a.�.��.� .a,..�...•�k..-.__..__ This insurance document is furnished to you as a matter of information for your convenience. It only summarizes the listed proposed policy(ies) and is not intended to reflect all terms and conditions or exclusions of each proposed policy(ies). Moreover, the information contained in this document reflects proposed coverage as of the effective date(s)of the proposed policy(ies)and does not include subsequent changes. This document is not an insurance policy and does not amend, alter or extend the coverage afforded by the listed proposed policy(ies). The insurance afforded by the listed proposed policy(ies) is subject to all terms, exclusions and conditions of such proposed policy(ies). All coverages, coverage forms, rates, rating procedures, rating plans, deductibles and other provisions will apply in conformance with those used by the various Insurance Companies and authorized by the State Regulatory Authorities: Any provision contained herein which conflicts with State Regulations will be amended as required to conform. Higginbotham receives a commission based on a percentage of the premium from insurance companies for placement of insurance and service of our clients. Higginbotham may be eligible for additional compensation, bonuses or awards based on volume and profitability of business placed with some insurance providers. Explanations are in general terms and do not change or replace the terms or conditions of the policies. 5 " st- 11 ! ' ;- l �- Y:' f } . ,...........,....-:„ - . • - it. i‘ •_.. ‘...., -,-... - 6 ,.y 1 ` ' Higginbotham - .. _- _. _ _ -. - v T I 1 'HIG. Service24 ; A '24/7 Service ^em Portal s .. \ '�. t - You know the saying - time is your'most.valuable asset.At , € ��dd .p , , µ , Higginbotham,we help you make the most of it with HIG, Service24.With this software, you have a resource that streamlines service, empowering you to communicate with. . your account team and take action on your insurance;policies , 24/7 You get immediate fulfillment by logging into a secure — - i online portal or mobile app. 1 Service Anytirne,.:Anywhere• ', Easy Access - HIG Service24 convenientlymakes your insurance information Tq get started, go to https:J/portal:, ! immediately, available to you so you'll never have to search csr24 com/mvc/7282374 to create a 1 for your policy documents again.And, you can act upon;your unique login lb and password that gives policies for real=time service whenever the'need arises ofl,your you access to your insurance policies computer or mobile_ :de_vice, and keeps your information protected. Or, contact your account team to get Time-Saving Capabilities setup. Either way you choose,you'll HIG:Service24 is simple to use, letting you: receive a user manual with step=by-step instructions so you can make the most • Obtain Certificates_of:Insuranceinstantly,. of all the ways HIG Service24 makes the • `Print auto ID cards`on.demand. ' most_of your time. - • 'Print lists of vehicles, drivers or certificate holders: ' . , • Request policy changes,like updating your address or adding vehicles/drivers, ' !_ t'... ._ :_- = • View your policy information. _ _ • Share documents with us. : MIK , - • Pay bills. ,_!, im, , -- • Report claims: 1 �® C 7. jhigginbottiam.c a 1 r:;,':-..r7P'::••, ; __." 1 , : ',.::•;;, ,_ : ,_ ,'1-, , r:.- • '' , . . ;,-, ;',:•.J': . _„:• '.. ,;- ,,.' ,.,H,, :"I.,.-Y ' _ : .-: :- ";,'•,;-:;"; '. _ .-:,-: ',-; ';.-,, : :-;' :-I ,1 f. , ' -1 :.. ; ;SUMMARY: ;iii ; ''.,;. ,, ; ' ; ' ;--•- -:.• • • "r' ':';'",;E';:'- ., --;: : ';-, .-: ', ; -." ' ' PREIVItUtit ' : 'COMPARISON ri i_:____.___,,,,_,,--..._-_,..'._,..i'.:::'2,,„___: _„.,_ ::.__,-,..-2-:_ -., ',,....,-,.., . _ _,_,.._.,'„.-__: -_,.____.__,.,.-,::_,__.:, ,:_ :, ..,_-_:_--., -_:,..,, ..:___..:2._.::.,1:.,L.:::L.:: :•:i_:....:::,...._.2: ...:Li ., ..._.._ . , — 4RelkiliW : ' 4 ! .*- 1010 '• ' ... , ..-,--,... ,...'..1 ,-,?--Jr. --,'.- . ,.-• .. - -! • ,,, .... .!„-'15i-,,.N,-., I :i CoveraRe _ ____ . Bcposure ; Premium Exposure 1 Premium ... Commercial Property $1 $242,319,396 $240,244,396 ,981,491.72 Rate: $0.7772 Rate: $0.6543 . $1,649,308.33 ; Equipment Breakdown $242,319,396 . $23,505.00. $240,244,396 . $22,343.00 $100,000,000 $100,000,000 Terrorism $19,043.89 $18,938.97 Limit Limit ! Agency Fee $20,000.00 $20,000.00 Total $2,044,040.61 $1,710,590.30 BILL PAYMENT OPTIONS Commercial Property, Equipment Breakdown, Terrorism and Agency Fee , Premium of$2,044,040.61 due in full at time of binding—Premium Finance Available PAY ON-LINE https://higginbotham.epaypolicy.corn Explanations are in general terms and do not change or replace the terms or conditions of the policies. 7 MARKET LISTi ACNDRESPONSE 1. .': F' 2022 Market List and Response 111111110girliallIMIla IINIONSTM1116110Resp nse Waypoint!AmRisc QUOTED Incumbent Arrowhead Not Competitive Incumbent;capacity not competitive due to change in carrier guidelines _ Axis QUOTED Incumbent Liberty EBD QUOTED Incumbent AGR/Lloyds QUOTED Incumbent RSUI QUOTED Incumbent Swiss Re QUOTED Incumbent Velocity QUOTED Incumbent Hiscox Terr QUOTED Incumbent Westchester Not Competitive Unable to compete with our primary terms based on deductible and loss history Arch QUOTED New Capacity Aspen Not Competitive S2.5M Max capacity in excess Beazley Declined Location and size of risk Berkshire Declined Unable to compete with our primary terms based on deductible and loss history Crum&Forester Not Competitive S2.5M Max capacity in excess. Catalytic Declined Valuation,Loss History,Targets Core QUOTED New Capacity Everest Declined Requires a Min of a 3%NWS Deductible Hallmark Not Competitive Excess Market only,unable to compete with current quotes ICAT Declined Occupancy Insurisk Not Competitive Quota Share Market Only,max 15%of Excess Ironshore Not Competitive S5M Max capacity in excess James River Declined TIV size and average year built Kemal) Declined Unable to compete with our primary terms based on deductible and loss history Kinsale Not Competitive Indicated over 5400k Layer Premium for the$25M xlo$25M Layer Lexington Not Competitive Requires a Min of a 3%NWS Deductible Markel Not Competitive $5M Max capacity in excess Munich Primary Declined Requires a Min of a 3%NWS Deductible and S300k Premium for their share(S2.5M Max) Nationwide Not Competitive Excess Market only,unable to compete with current quotes Navigators Declined Location and occupancy One Beacon Declined Location Rivington Declined Currently out of Texas Capacity Sompo Indicated Could consider part of the$25M Primary but unable to offer CBI and match certain other terms Starr Declined Location and occupancy Travelers Declined Location Westfield Not Competitive Indicated$25M Primary at over S2.2M Layer Zurich Declined Location Explanations are in general terms and do not change or replace the terms or conditions of the policies. 8 V; 3 r , MARKETLIST AND RESIPONSE i. ' L�_ wr-.•...na.ar+_._,.--__..�._..,I"........-t _. _.�«.i_ ..-_.T.,-z....L..�-_._�..-...�............�.-.._.. _".:...J.1_•__.._..... .. .a."_... r�__ ..v ,."»�.. .-_-.:-,....__..� .--w..w....s_4...._ Z. _w_: .-..�...�_..-..L.-=.+� 2021 Market List and Response Carrier Response AmRisc ? Lead Quote- $100M Per Occurrence—40% Participation Velocity Risk Underwriters $100M Per Occurrence— 15% Participation Swiss Re $25M Per Occurrence— 15% Participation AXIS Surplus Lines Insurance Company $25M Per Occurrence— 15% Participation Lloyds of London $25M per Occurrence— 15% Participation RSUI Indemnity Insurance Company $25M Per Occurrence in Excess of$25M Per Occurrence—45% Participation Arrowhead Insurance Risk Managers $50M Per Occurrence in Excess of$50M Per Occurrence—45% Participation RSUI Indemnity Insurance Company $146.3M Per Occurrence in.Excess of$100M Per Occurrence— 100% Participation Explanations are in general terms and do not change or replace the terms or conditions of the policies: 9 J � _ MARKET LIST _AND RESPONSE = 12020 Market List and Response Market Approached Status Response/Details _ _ - Unable to compete with the current pricing;unable to quote with ACE Not Competitive an open loss A Risc QUOTED Incumbent Required Minimum Attachment of$50M due to the Frame ARCH Not Competitive Construction Arrowhead QUOTED Incumbent Aspen Not Competitive Excess Only;Unable to Compete with the Incumbents AXIS QUOTED Incumbent Beazley Decline Unable to quote due to the location Berkshire Decline Unable to meet the targeted terms due to the construction and location Catalytic Decline Unable to compete with the incumbents due to the loss Colony Not Competitive Excess Only;Unable to Compete with the Incumbents Ethos Decline Location of Risk Everest Not Competitive Excess Only;Unable to Compete with the Incumbents General Starr Not Competitive Unable to compete,limited flood/CAT capacity Hallmark Not Competitive Excess Only;Unable to Compete with the Incumbents Fliscox-Terrorism QUOTED Incumbent ICAT Decline Due to occupancy and loss history Insuriiskk QUOTED New Capacity James River Not Competitive Excess Only;Unable to Compete with the Incumbents Lexington Not Competitive Unable to meet the targeted terms due to the construction and location Liberty Equip QUOTED Incumbent ronsh ore Not Competitive Excess Only;Unable to Compete with the Incumbents Markel Incumbent,however needed 20%more than Arrowhead who Not Competitive - was able to expand their capacity IV4,axumm Not Competitive Excess Only;Unable to Compete with the Incumbents Munich Not Competitive Does not meet Minimum TIV Requirements One Beacon Not Competitive Excess Only;Min Attachment of$100M-Unable to Compete with the Incumbents Riviggton Not Competitive Excess Only;Unable to Compete with the Incumbents RSUI QUOTED Incumbent Scottsdale Not Competitive Excess Only;Unable to Compete with the Incumbents Starr Specialty Not Competitive Unable to meet the targeted terms due to the construction and loss history Swiss Re QUOTED Incumbent THB/Lloyds QUOTED Incumbent Travelers Not Competitive Unable to quote due to the location Velocity QUOTED Incumbent Zurich Not Competitive Would requirement a Min of a 3%NS Deductible Explanations are in general terms and do not change or replace the terms or conditions of the policies. 10 PRO PERTY CARRIER • AmRisc, LP; Non-Admitted; Rated AM Best A VIII or better • Velocity Risk Underwriters; Not Rated • Starstone Specialty; Rated AM Best A-XI • First Specialty Insurance Company, Rated AM Best A+XV • AXIS Surplus Insurance Company, Rated AM Best A+XV • Lloyds of London; Non-Admitted; Rated AM Best A VIII or better • Arch Specialty Insurance Company; Non-Admitted; Rated A+XV • RSUI Indemnity Insurance Company; Rated AM Best A+XIV POLICY PERIOD 5/1/2022 -5/1/2023 COVERAGE Property NAMED INSURED • City Of Beaumont PERILS INSURED Risks of Direct Physical Loss, Including Theft of Contents and Limited Transit Subject to Policy Terms, Conditions and Exclusions. All Risk, including Flood & Earth Movement, excluding EB COVERED LOCATIONS As per the Schedule of Values on File with the Company TOTAL INSURED VALUE $242,319,396 — Breakdown As Follows Real Property: $174,327,552 Contents: $ 29,369,925 Other: $ 35,178,192 EDP: % 1,443,727 Business Income: $ 2,000,000 LIMIT OF LIABILITY $242,319,396 per Occurrence— Blanket per Location, Except Business Income is Blanket Across All Locations CARRIER LIMIT As Per The Carrier Participation Schedule Explanations are in general terms and do not change or replace the terms or conditions of the policies. 11 r PR 4r PER n J Extensions and Sublimits Earth Movement per occ&ann aggr for all Locations combined;subject to: $15,000,000 Earth Movement per occ&ann aggr:CA,AK&HI Not Covered Earth Movement per occ&:ann aggr:OR&WA Not Covered Earth Movement per occ&ann aggr:New Madrid Not Covered Flood,per occ&ann aggr for all Locations combined;subject to: $15,000,000 Flood,per occ&ann aggr:Zones A&V $10,000,000 AccountsReceivable $1,000,000 Civil or Military Authority,the lesser of 30 days max $1,000,000 Contingent Time Element;the lesser of 60 days max $1,000,000 Contractors Equipment;unscheduled:owned,leased, rented or borrowed $100,000 Any One Item $25,000 Course of Construction $1,000,000 Course of Construction Soft Costs $100,000 Debris Removal;the lesser of 25%/$5,000,000 Electronic Data and Media $2,500,000 Errors or Omissions $1,000,000 Extended Period of Indemnity 180 days Extra Expense/Expediting Expense $1,000,000 Fine Arts $500,000 Fire Brigade Charges $100,000 Fungus, Molds,Mildew,Spores,Yeast(per occ/ann aggr). $15,000 Ingress/Egress 30 days max $250,000 Leasehold Interest $100,000 Limited Pollution Coverage(Annual Aggregate) $5,000 Lock Replacement $25,000 Miscellaneous Unnamed Locations $250,000 Newly Acquired Property 60 days max $2,500,000 Ordinance or Law: Coverage A: Inc!in Bldg Limit Coverage B: 20%per bldg, max$5M per occ Coverage C: Included with Coverage B Coverage D: Inc'in the TE,if cov'd Coverage E Included in the Building Limit Ordinary Payroll 30 days Plants,lawns,trees or shrubs $100,000 Any one plant, lawn,tree or.shrub $25,000 Professional Fees(Annual Aggregate) $100,000 Reclaiming, restoring or repairing land improvements $10,000 Reward Reimbursement $25,000 Explanations are in general terms and do not change or replace the terms or conditions of the policies. 12 `PROPERTY r} , Royalties $100,000 Service Interruption(72 hr qualifying period) $500,000 .. Spoilage $50,000 Time Element Monthly Limitation 1/12th monthly Transit $500,000 Underground pipes,flues&drains $100,000 Valuable Papers and Records $1,000,000 Sinkhole Loss Extension As Per Schedule Wind Driven Precipitation Per Occ and Ann Agg $250,000 Musical Instruments/Band Equipment $250,000/Maximum$10,000 per item DEDUCTIBLES Note: Per occurrence unless stated otherwise. $50,000 Per Occurrence as respects All Other Perils, EXCEPT as noted below: • Named Storm Wind &Hail: 2%of the Sum of the Stated Values for each Location (affected by loss) identified in the Statement of Values subject to$250,000 minimum per occurrence • Wind Driven Precipitation: 2%of the Sum of the Stated Values for each Location(affected by loss) identified in the Statement of Values subject to$250,000 minimum per occurrence • All.Other Wind & Hail:$100,000 per occurrence • Flood:$100,000 per occurrence, Except MAXIMUM NFIP,whether purchased or not,for Locations in Zones prefixed with A or V or within - Zone B,X500 or X-Shaded;plus$100,000 per Occurrence; Except 2%of the total insurable values at each location involved in the loss or damage in any one Occurrence,subject to a minimum deductible of$250,000 in any one Occurrence for Flood caused by, resulting from, or associated with a Named Windstorm. • Earth Movement:$50,000 per occurrence • Explanations are in general terms and do not change or replace the terms or conditions of the policies. 13 L : L : : CO-INSURANCE • Waived • 1/12th Monthly Limitation—Time Element VALUATION • Replacement Cost as respects to Property Damage • Actual cash Value as respects motor vehicles • Actual Loss Sustained as respects Time Element TERMS AND CONDITIONS • Percent deductibles are per occurrence, per location • Limits are as per Schedule by Building, NOT blanket • Roof Coverings to be ACV if originally installed or las fully replaced prior to 2010 • Coverage excludes all loss or damage directly or indirectly caused by an Named Storm in existence at time of written request to bind or inception of any new or additional exposure. • Wind/Hail is sublimited to$100.0M per Occurrence • Valuation as respects to motor vehicles is ACV; Over the road coverage is excluded. • Business Income is blanket across the schedule. PREMIUM $1,883,371.00 Premium $ 15,500.00 Fees $ 81,362.53 Surplus Lines Tax $ 1,258.19 Stamping Fee $1,981.491.72 Total Premium Note This insurance contract is with an insurer not licensed to transact insurance in this state and is issued and delivered as a surplus lines coverage pursuant to the Texas Insurance statutes. The State Board of Insurance does not audit the finances or review the solvency of the surplus lines insurer providing this coverage, and this insurer is not a member of the property and casualty insurance guaranty association created under Texas.Insurance Code § 462. Texas Insurance Code §225.004, requires payment of 4.85 percent tax on gross premium. Explanations are in general terms and do not change or replace the terms or conditions of the policies. 14 - f.= ,- l: r- ;PROPERTY Fhhh } r 2 �` Y • i t ,,,,j ' CITY OF BEAUMONT PROPOSED Carrier Participation Schedule Carrier Layer Carrier Participation Carrier Premium Fees Surplus tines Tax Stamping Fee Total AmRlsc,LP $100M Per Occurrence 40.0% $ 680,800,00 $ 15,000.00 $ 33,746.30 $ 521.85 $ 730,068.15 Velocity Risk Underwriters $100M Per Occurrence 15.0% $ 264,678.00 $ 500.00 $ 12,861,13 $ 198.88 $ 278,238,01 Starstone Specialty insurance Company $100M Per Occurrence 5.0% $ 85,100.00 $ - $ 4,127.35 $ 63.83 $ 89,291.18 First Specialty Insurance Co $25M Per Occurrence 10.0% $ 156,500.00 $ - $ 7,590,25 $ 117.38 $ 164,207.63 AIDS Surplus Lines InsuranceCompany $25M Per Occurrence 10.0% $ 145,000,00 $ - $ 7,032.50 $: 108.75 $ 152,141.25 Lloyds of London $25M Per Occurrence 20.0% $ 250,000.00 $ • $ 12,125,00 $ 187.50 $ 262,312.50 Arch Specialty Insurance Company $2SM Per Occurrence in excess of$25M Per Occurrence 40.0% $ 80,000.00 $ • $ 3,880.00 $ 60.00 $ 83,940.00 RSUI indemnity Insurance Company $50M Per Occurrence in excess of$50M Per Occnrrence 40.0% $ 128,000.00 $ • $ • $ • $ 128,000.00 RSUl Indemnity Insurance Company $142M Per Occurrence in excess of$100M Per Occurrence 100.0% $ 93,293.00 $ • $ • $ • $ 93,293.00 TOTAL: $ 1,883,371.00 $ 15,500.00 $ 81,362.53 $ 1,258,19 $ .1,981,491.72 'The above%a summary of carrier participation only and does not reflect the complete terms or conditions of coverage bound. 'Please refer to the carrier quotes for exact terms and pricing Explanations are in general terms and do not change or replace the terms or conditions of the policies. 15 jttjr IEEEENEEE iI : II1IT1iIII { CARRIER Liberty Mutual Fire Insurance Company(Admitted) BEST'S RATING A XV Excellent POLICY PERIOD 05/01/2022- 05/01/2023 COVERAGE Equipment Breakdown NAMED INSURED • City of Beaumont TOTAL INSURED VALUE $242,319,396— Breakdown As Follows Real Property: $174,327,552 Contents: $ 29,369,925 Other: $ 35,178,192 • EDP: % 1,443,727 Business Income: $ 2,000,000 DEDUCTIBLES • $25,000 Property Damage • 24 Hours Business Income • Included in BI — Extra Expense • Included in PD - Spoilage PREMIUM $25,505.00 Explanations are in general terms and do not change or replace the terms or conditions of the policies. 16 EQUIPMENT BREAKDOWN Insurance applies only to a coverage for which a Limit of Insurance,a number of Days/Hours or the word INCLUDED is shown. If INCLUDED is shown,then the limit for that coverage is part of the Limit Per Breakdown. Coverage Limit Of Insurance Or Days/Hours Limit Per Breakdown $50,000,000 1. Property Damage Included 2. Expediting Expenses $250,000 3. Business Income $2,000,000 a. Extra Expense Combined with Business Income b. Extended Period Of Restoration(#Of Days Of Coverage) 90 Days c. Data Or Media $250,000 4. Spoilage Damage $250,000 5. Utility Interruption $2,000,000 (The maximum limit for Utility Interruption,subject to any applicable lower coverage limits,including business income, extra expense,and/or spoilage,respectively) a. Coverage applies only if the interruption of services lasts at least: 24 Hours 6. Newly Acquired Premises $2,000,000 a. (Number Of Days Of Coverage) 90 Days 7. Ordinance Or Law $2,000,000 8. Errors And Omissions Included 9. Brands And Labels Included 10. Contingent Business Income/Extra Expense $2,000,000 a. Covered Premises: Direct Suppliers and Recipients b. Delivery of Services or Materials;or Sales: All Services&Materials Unless a higher limit or INCLUDED is shown,the most we will pay for direct damage to covered property is$25,000 for each of the following. These limits are part of,not in addition to,the Property Damage or Limit Per Breakdown. Coverage Limitations Limit Of Insurance Ammonia Contamination $250,000 Consequential Loss $250,000 Data And Media $250,000 Hazardous Substance $250,000 Water Damage $250,000 Explanations are in general terms and do not change or replace the terms or conditions of the policies. 17 ` Limited Coverage for Fungus,Wet Rot and Dry Rot ' Limit $15,000 Business Income and/or Extra Expense—Number ofDays 000ays � Increased Cost ofLosy.00d'14e6te'd Expenses for"G,een"Upgrades Property Damage Limit $100,000 Business Inoomemnd/orExtraExpense—NumberofDays 30 Days Conditions And Olitional-Coverages ' � Business Income Report Date ' . Business Income Annual Value ` . Business Income Coinsurance Percentage Waived Diagnostic Equipment IncludedEquipment Breakdown Enhancement Endorsement(See attached Included . form for full details)—key enhancements include: ` ' Civil Authority extension within 1DOnmOes/4weeks _ Ingress/Egress'$2S00O0subOmit - Claim Preparation Fees'$2SUO08subboit ' Dependent Location extension for Contingent n0EE ' ' 15V% replacement cost for Safety Improvements . Deductibles' ' ' Combined Deductible ' Property.Damage Coverages B25,000 . Business Income 24Hours ` Extra Expense Included hnEU Spoilage Included hnPO Other ` Other 2uteosionslReytriotions ' ° Limit of Insurance Off Premises Equipment $50800 — ' ' ' ' Explanations are/n general terms and do not change or replace the terms or conditions of the ' ` ' 18 ' fTejRRisM , , CARRIER Lloyds of London (Admitted) BEST'S RATING A XV Excellent POLICY PERIOD 05/01/2022 - 05/01/2023 COVERAGE Terrorism NAMED INSURED • City of Beaumont TOTAL INSURED VALUE $242,319,396—Breakdown As Follows Real Property: $167,635,044 Contents: $ 30,645,652 Other: $ 39,963;700 Business Income: $ 2,000,000 COVERED LOCATIONS As per the Schedule of Values on File with the Company PERILS COVERED coverage art 7:f — $100,000,000 Per Occurrence Terrorism and Sabotage $100,000,000 Aggregate 100% $1,000,000 Each Claim! Terrorism and Sabotage Liability $2,000,000 Aggregate 100% LIMIT OF LIABILITY $100,000,000 Per Occurrence and in the aggregate for all coverages combined Explanations are in general terms and do not change or-replace the terms or conditions of the policies. 19 i , ti �i ` � .T i._ =:TERRORISM . SUBLIMITS Municipalities Terrorism and Sabotage Coverage Part: TR5 P0005 CW(07-19) Hiscox Participation: 100% Hiscox Municipalities Terrorism and Sabotage Limit of Liability: $100,000,000 Per Occurrence/$100,000,000 Aggregate Total Insured Value: $242,180,972 Business Interruption Sublimit $2,000,000 Civil or Military Authority Sublirnit $1,000,000,30 Day(s),and 1 Mile(s) Debris Removal Expenses Sublimit $10,000,000 Decontamination Costs Excluding NCBR Sublimit $2,500,000 Demolition and Increased Cost of Construction Sublimit $5,000,000 Errors and Omissions Sublimit $10,000,000 Electronic Data Processing Media Sublimit $1,000,000 Extended Period of Indemnity Sublimit $0 and 180 Day(s) Fine Art Sublimit $1,000,000 Ingress/Egress Sublimit $1,000,000,30 Day(s),and 1 Mile(s) Preservation of Property Sublimit $250,000 Professional Fees Sublimit $1,000,000 Relocation Expense Sublimit $250,000 Service Interruption Sublimit $10,000,000,30 Day(s),and 1 Mile(s) Transit Sublimit. $2,500,000 Valuable Papers Sublimit $1,000,000 Accounts Receivable Sublimit $2,500,000 Asbestos Sublimit $500,000 Automatic Coverage Sublimit $25,000,000 and 90 Day(s) Commissions,Profits,and Royalties Sublimit $250,000 Contingent Business Interruption—Named Suppliers/Customers $2,000,000 Sublimit Contingent Business Interruption—Unnamed Suppliers/Customers $0 - Sublimit Delay in Startup Costs Sublimit $250,000 Fire Protective Systems Sublimit $10,000 Green Building Additional Expense Sublimit $250,000 Key and Lock Expense Sublimit $250,000 Landscaping Sublimit $10,000 Leasehold Interest Sublimit $2,000,000 Explanations are in general terms and do not change or replace the terms or conditions of the policies. 20 ti ° T}ERRORIS}M Y s tC I�._v ...�.w...�.. .,............. .-.t-..r..,..a..-L..t Lam_.....«._t�....Yr+.......s?.�._.. ...s.u—....�.a_+..�..t e.i?....e .._�..r..mr_.�..0 f ._!� . * 1 �'1 Loss of Attraction Sublimit $0,0 Day(s),and 0 Mile(s) Miscellaneous Unnamed Locations Sublimit $10,000,000 and 30 Day(s) Newly Acquired Locations Sublimit $1,000,000 and 90 Day(s) Property In Course of Construction Sublimit $1,000,000 Rental Income Sublimit $2,000,000 Soft Costs Sublimit $250,000 Deductible: $50,000 Waiting Period: 0 Hour(s) Municipalities Terrorism and Sabotage Premium: $16,150 Endorsements: NONE Unless otherwise specified,all sublimits listed above apply on a per occurrence basis and are a part of,and not in addition to;the Municipalities Terrorism and Sabotage limit of liability. Terrorism and Sabotage Liability Coverage Part:TR5 P0011 CW(11-18) Hiscox Participation: 100% Hiscox Terrorism and Sabotage Liability Limit of Liability: $1,000,000 Each Claim i$2,000,000 Aggregate Total Insured Value: $242,180,972 Deductible: $50,000 Waiting Period: 0 Hour(s) Terrorism and Sabotage Liability Premium: $2,000 Endorsements: NONE PREMIUM $18,150.00 Premium $ 880.28 State Tax $ 13.61 Stamping Fee $19,043.89 TOTAL Explanations are in general terms and do not change or replace the terms or conditions of the policies. 21 • i E Y r RECOMMENDA TION _ , _ C y i f r t ?�'1 PROPERTY&CASUALTY COMMON INSURANCE COVERAGE RECOMMENDATIONS • Property Coverages • Liability Coverages • Cyber/Identity Theft/Crime • Automobile Coverage • Workers'Compensation Coverages • Umbrella • Directors & Officers Liability/Employment Practices/Fiduciary • Foreign Coverages BOND RECOMMENDATIONS • Contract• Court • Fidelity • Financial Institution • License&Permit • Probate • Public Official • Surety EMPLOYEE BENEFITS RECOMMENDATIONS • HR Services • Group Medical • Group Dental • Group Life and Accidental Death &Dismemberment • Long.Term Care • Section 125 Cafeteria Plans • Short Term Disability • Vision • Individual Medical/Dental LIFE DEPARTMENT RECOMMENDATIONS • Business.Planning • Estate Planning RETIREMENT PLAN.SERVICES RECOMMENDATIONS • Qualified Plans • Non-Qualified Plans PERSONAL LINES INSURANCE RECOMMENDATIONS • Automobile • Home • Flood/Earthquake • Umbrella • Farm &Ranch • Watercraft/Recreational Vehicles • Personal Articles Floater Explanations are in general terms and do not change or replace the terms or conditions of the policies. 22 RECOMMENDATIONS., }.r .....a_az..-........w+..i_<,._....,....i�..<..-ti.,.-+...._........_..._�vrw._c+s.��..u........ �....r=.a...lss_._._._ .._...___..-... .�t.......,_.va .s.n t - 1 c. INSURANCE CERTIFICATE MANAGEMENT RECOMMENDATIONS CertCon Services (an affiliate of Higginbotham) • Reviews Certificates of Insurance to ensure that the requirements in Master Service Agreements, leases, subcontracts and other agreements are met • Provides web access to the compliance status of any vendor,tenant or subcontractor • Controls insurance costs by avoiding unnecessary claims payments under the policy • Helps reduce premiums and keeps clients insurable Certificate Processing • Helps to implement industry-specific agreements • Requests and receives certificates from vendors, tenants, subcontractors,suppliers and others • Analyzes certificates for compliance with agreements • -Mails or emails non-compliance reports requesting corrections • Monitors expiration dates and requests renewal certificates • Re-analyzes certificates upon renewal of insurance • Updates clients of the insurance status (e.g. compliance standing, contract information, requirements, etc.)via website login .®� ®�® �•®�®— CertCon Services Contact Fes , f® i 1 � I r Rick Carson, Director of Operations l� 817-810-0870 SERVICES rcarson@certcon.com Explanations are in general terms and do not change or replace the terms or conditions of the policies. 23 • r t,- " - t F {5[t + x - r , Y RECOMMENDATIONS ... -:,,,::::::t: .:, ,,.,:-,,,::-.:, ,,,,,,- -,,:::-„::-::::::: :,::,, :. :‘,....:- :;: : ,_,,.:: ::,,_, ,, ,: .,..41,; .:.;", ': :',',' ..:' ':,,r"''-'•;•';'::',:,'",'• ,,,:.•k..1-,'',.'',";?,:,''.:- ;' ,''::',1 r':,-.:1''-'- -•- '''',..'''' ''.*:;'- : .--':':':. ,'•:';'*;' RISK MANAGEMENT INFORMATION SYSTEMS MyWavePortal® MyWave is a personalized Web site that allows you to click, connect and communicate with Higginbotham. It's designed to offer you time-saving resources that build convenience into managing your everyday work tasks— whether you want to collaborate with our agency online, quickly access timely news,information and resources, or connect with more than 100,000 peers in your industry. • Collaboration Center • Survey Benchmarking • Community MyWaveRM® Whether you're looking for flyers to help support your employee safety programs or searching for Workers' Compensation information, MyWave's Risk Management Center combines efficiency with user-friendly tools and resources you will use time and time again. • Safetyzone • Documents on Command • Resources • Online Services MyWaveOSHA® To help you simplify and manage your OSHA reporting, we've gathered the occupational safety resources you need into one easily-accessible spot, with functionality and content designed to help you efficiently meet your OSHA reporting needs. • Local and Resourceful • OSHA Log Forms • Reports and Analyses - • FAQs SUCCEED RISK MANAGEMENT CENTERTM The Risk Management Center is a repository of tools that empowers you to proactively manage your risk exposures and reduce claims, losses and associated costs. Too, importing your claims data into the Center reveals the root causes of your losses through vivid -reports: This information assists in determining the effectiveness of your overall property and casualty insurance programs and provides vital information for making loss control and risk management program changes. Nearly every exhibit contains brilliant charts to make the data easier to comprehend. • . Online Training Library • Incident Tracking/Trending and Claims Reporting • Employee Training Management • - Safety Data Sheet Management • Behavior Based Safety Track • Job Description Track • Certificate of Insurance Management Explanations are in general terms and do not change or replace the terms or conditions of the policies. 24