Agenda 09/26/2017 Item #16E1909/26/2017
EXECUTIVE SUMMARY
Recommendation to approve the purchase of Liability, Automobile, Workers’ Compensation,
Aircraft, Airport and other insurance coverage for FY 2018 in the estimated annual amount of
$949,474.
OBJECTIVE: To protect the County against financial loss from casualty related claims and lawsuits and
to comply with statutory requirements through the implementation of a cost effective, best value Casualty
Insurance program.
CONSIDERATIONS: Pursuant to Florida Statutes Section 768.28 and Chapter 440, the Risk
Management Division administers two risk management funds (Fund 516 and Fund 518) to finance its
Property, Casualty and Workers’ Compensation risk financing programs. Generally, the County’s
deductible (self-insured retention) is $300,000 per occurrence except for Workers’ Compensation, which
has a $500,000 per claim deductible. Claims are administered by Johns Eastern Company. Insurance and
Risk Management Services (IRMS) is the County’s contracted broker of record for coverage other than
aircraft and airports. Gallagher Aviation is the specialty broker for aircraft and airport coverage.
The County purchases excess coverage to protect against catastrophic losses; to cover a cause of action
not limited by a state statutory tort cap (such as employment practices liability); to comply with
contractual requirements, including grants; or if a claims bill is enacted pursuant to chapter 768.28, Fla.
Statutes. A full marketing of the program occurs every three years with the next marketing scheduled for
the FY 19 renewal.
For the FY 18 renewal, a Renewal Summary Sheet is attached which illustrates the pricing of each carrier
by line of coverage and the purpose/basis of each coverage. The significant highlights of the FY 2018
renewal are as follows.
Ratable exposures increased on average 6.1%; however, total premium on renewing policies
decreased 3.31% from $928,062 to $897,366.
Premium increases occurred in the Excess Workers’ Compensation, Pollution Liability and
Maritime Employers Liability coverage lines. These were due solely to higher ratable payroll or
an increase in the number of covered locations.
The Pollution Liability carrier is offering a pre-paid three-year rate guarantee. Staff recommends
this purchase.
Premium for the remaining coverage lines were either unchanged or reduced.
The property insurance program renews on April 1, 2018 and is not included in this
recommendation.
Flood insurance is not included in this recommendation and will be submitted separately.
In addition to the above, coverage proposals were sought for Cyber insurance. The exposure to
governments and private industry for a data security breach is significant and well documented. Cyber
insurance is designed to protect the County by transferring the security breach exposure to an insurance
carrier. The Cyber insurance carrier provides the response services necessary to investigate and respond
to a breach in accordance with all state and federal laws which can be a massive undertaking. A
consultant’s report and marketing summary are attached. The Information Technology Director has
reviewed this recommendation and concurs. Cyber coverage will pay for:
1. The cost of forensic investigations to determine the source and extent of the breach.
2. Fines and penalties as a result of regulatory enforcement.
16.E.19
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09/26/2017
3. The restoration of lost or destroyed data.
4. Business income loss.
5. The cost of ransom to end an extortion threat (ransomware).
6. The cost of attorneys, forensic specialists, notification specialists, and credit monitoring services.
7. The cost of hiring public relation specialists to help restore and protect reputation.
Staff recommends the purchase of a coverage limit of $3,000,000 per occurrence with a $50,000 self -
insured retention. The annual premium cost is $52,108.
All carriers hold a Best’s financial rating of “A, Superior” or higher.
FISCAL IMPACT: Estimated annual premiums are $949,474 which includes the cost to purchase
Cyber insurance. Staff recommends the purchase of the three-year prepaid rate guarantee option for
pollution liability insurance as outlined in the Renewal Summary Sheet. Sufficient funds have been
budgeted within Fund 516, Property and Casualty Insurance and Fund 518, Workers’ Compensation
Insurance to purchase coverage as outlined in the Executive Summary and Renewal Summary Sheet.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
item.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to
form and legality, and requires majority vote for approval. -JAK
RECOMMENDATION: To approve:
1) The purchase of coverage as outlined in the Executive Summary and the Renewal Summary Sheet
effective October 1, 2017.
2) The rejection of Uninsured Motorist Insurance except for scheduled take home vehicles,
authorizing the County Manager or designee to execute the necessary rejection forms.
3) The selection of the three-year prepaid rate guarantee option for Pollution Liability insurance as
outlined in the Renewal Summary Sheet.
4) The purchase of Cyber insurance as outlined in the Executive Summary.
And authorize the County Manager or designee to complete the applications or other documents
necessary to bind coverage and services effective October 1, 2017.
Prepared by: Jeffrey A. Walker, CPCU, ARM, Division Director, Risk Management Division
ATTACHMENT(S)
1. FY 18 Casualty Renewal Summary (PDF)
2. Aircraft and Airport Renewal 17-18 Gallagher Aviation (PDF)
3. Collier Cyber Marketing Report (PDF)
4. Collier Cyber Pricing Options- Indian Harbor (PDF)
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09/26/2017
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.19
Doc ID: 3717
Item Summary: Recommendation to approve the purchase of Liability, Automobile, Workers’
Compensation, Aircraft, Airport and other insurance coverage for FY 2018 in the estimated annual
amount of $949,474.
Meeting Date: 09/26/2017
Prepared by:
Title: Division Director - Risk Management – Risk Management
Name: Jeff Walker
08/31/2017 8:03 AM
Submitted by:
Title: Division Director - Risk Management – Risk Management
Name: Jeff Walker
08/31/2017 8:03 AM
Approved By:
Review:
Administrative Services Department Paula Brethauer Level 1 Division Reviewer Completed 08/31/2017 10:28 AM
Information Technology Mike Berrios Additional Reviewer Completed 09/15/2017 9:05 AM
Administrative Services Department Len Price Level 2 Division Administrator Review Completed 09/15/2017 2:49 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 09/18/2017 7:40 AM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 09/18/2017 9:53 AM
Office of Management and Budget Laura Wells Additional Reviewer Completed 09/18/2017 10:26 AM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 09/19/2017 2:23 PM
Board of County Commissioners MaryJo Brock Meeting Pending 09/26/2017 9:00 AM
16.E.19
Packet Pg. 2401
Collier County Government
FY 18 Casualty Insurance
Renewal Summary
All Lines Aggregate $ 573,493 $ 543,471 -5.23%
Limits Purchased:$5,000,000 General Liability $5,000,000 General Liability
$5,000,000 Auto Liability $5,000,000 Auto Liability
$5,000,000 Public Officials $5,000,000 Public Officials
$600,000 Workers Comp $600,000 Workers Comp
$1,000,000 Auto Physical $1,000,000 Auto Physical
Damage Replacement Damage Replacement
$1,000,000 Crime $1,000,000 Crime
Terrorism - Liability $ 15,500 $ 14,500 -6.45%Underwriters at
Lloyds
$10,000,000 per occurrence/ $20,000,000
aggregate
$10,000,000 per occurrence/
$20,000,000 aggregate
Excess Crime (Employee Dishonesty) $ 10,053 $ 9,085 -9.63%
Limits Purchased:$4,000,000 Employee $4,000,000 Employee
Dishonesty Dishonesty
$4,000,000 Computer $4,000,000 Computer
and Funds Transfer Fraud and Funds Transfer Fraud
$1,000,000 Faithful Performance $1,000,000 Faithful Performance
Excess Workers’ Comp: $ 152,789 $ 166,683 9.09%
Limits Purchased:Statutory Statutory
Reported Payrolls (est):$124,522,420 (projected)$135,601,398 (projected)9.09%
Rate per $100 Payroll:0.1227 0.1227 0.00%
Statutory Accidental Death $ 19,546 $ 17,567 -10.12%
Limits Purchased:Statutory Statutory
Pollution Liability $ 34,926 $ 36,683 5.03%
*Prepaid 3 year rate guarantee for
$110,049 for the period 10/1/17 thru
9/30/20.
Limits Purchased:$2,000,000 each loss $2,000,000 each loss
$4,000,000 aggregate $4,000,000 aggregate
Maritime Employers Liability $ 23,460 $ 24,000 2.30%
Limits Purchased:$1,000,000 $1,000,000
Excess Maritime Employers Liability $ 15,000 $ 15,000 0.00%
Limits Purchased:$4,000,000 $4,000,000
Policy Type FY 17 Premium and Limits FY 18 Deductibles and Notes Carrier/Vendor% Change Projected FY 18 Premium
Liability and clean up coverage for the discharge of
pollutants from scheduled tanks, landfills and
vehicles to comply with FS 376.309- Financial
Responsibility Law.
$1,000,000 retention Hanover Insurance
Primary coverage layer providing coverage for
bodily injury, property damage, professional acts,
employment practices, workers' compensation,
limited inverse condemnation/eminent domain, and
employee dishonesty/fidelity. FS 768.28, FS 440,
Federal Statutes.
Excess crime layer providing coverage for employee
dishonesty, Faithful performance by public officials
and Computer and Funds Transfer Fraud.
Excess Workers Compensation layer to provide
statutory coverage pursuant to FS 440.
$100,000 deductible per loss.
Purpose
Terrorism is excluded from most policies. This
program covers liability arising out of acts of foreign
and domestic terrorism otherwise excluded.
$300,000 per occurrence for
General Liability, Automobile
Liability and Public Officials
Liability; $100,000 for Crime;
$500,000 for Workers’
Compensation and $50,000 for
Auto Physical Damage
Princeton Excess
and Surplus
Death benefits provided to law enforcement officers
and extended to paramedic staff pursuant to FS
112.19.
$100,000 retention per occurrence.
$600,000 retention Midwest Employers
Indian Harbor
None Hartford Insurance
$1,000,000 American
Alternative Insurance
$10,000 Liberty Mutual
Insurance Company
Provides coverage for the liability arising out of the
operation of watercraft; injury to crew; and injury to
divers pursuant to the Jones Act 33 U.S.C. Sec. 901.
Page 1
16.E.19.a
Packet Pg. 2402 Attachment: FY 18 Casualty Renewal Summary (3717 : Purchase of Casualty and Related Insurance for
Collier County Government
FY 18 Casualty Insurance
Renewal Summary
Aircraft Insurance (Helicopter) $ 51,430 $ 38,512 -25.12%
Limits Purchased: $5,500,000 Hull Value $1,200,000 Hull Value per Appraisal-
October, 2016
$30,000,000 Liability $30,000,000 Liability
$1,000,000 Admitted Liability/Seat; $1,000,000 Admitted Liability/Seat;
$6,000,000 Admitted Liab Occurrence $6,000,000 Admitted Liab Occurrence
Airport Liability $ 6,865 $ 6,865 0.00%
Limits Purchased:$2,000,000 Premises Liability $2,000,000 Premises Liability
$2,000,000 Hangarkeepers $2,000,000 Hangarkeepers
Contingent Law Enforcement Professional $ 25,000 $ 25,000 0.00%
Limits Purchased:$3,100,000 each loss $3,100,000 each loss
$3,300,000 Aggregate $3,300,000 Aggregate
Total Fixed Costs Before Cyber 928,062$ 897,366$ -3.31%(30,696)$
Cyber Liability NA 52,108$ NA $50,000 retention Indian Harbor
Limits Purchased:$3,000,000 each loss
$3,000,000 aggregate
Total Fixed Costs Including Cyber 928,062$ 949,474$ 2.31%21,412$
Provides coverage for lability arising from a data
breach; defense costs; and mitigation/compliance
costs associated with a breach response pursuant to
the governing laws of each state.
Liability and physical damage (hull) coverage
resulting from the operation of the EMS aircraft.
Includes admitted liability coverage (death benefit)
to crew and passengers.
Coverage for bodily injury, property damage,
operations (including moving, handling, or fueling
of aircraft) and damage to aircraft in the care,
custody and control of the authority.
Coverage to protect the Board of Commissioners as
a named defendant for negligent acts arising out of
the law enforcement activities of the Sheriff pursuant
to various Florida Statutes, case law and Federal
Statutes.
Global Aviation
Underwriters
None Global Aviation
Underwriters
None Florida Sheriff’s Self-
insurance Fund
$50,000 Rotors in Motion/ $1,000
Rotors Not in Motion . Premium
includes a profit sharing credit of
$4,044 for safe operation.
Page 2
16.E.19.a
Packet Pg. 2403 Attachment: FY 18 Casualty Renewal Summary (3717 : Purchase of Casualty and Related Insurance for
Insurance Proposal
Prepared For
Collier County Board of
County Commissioners
3311 Tamiami Trail East
Naples, FL 34112
Presented: August 21, 2017
Aircraft Physical Damage and Liability
Aviation General Liability
Effective: October 1, 2017 to October 1, 2018
Tom Kaiser
Area Vice President
Arthur J. Gallagher Risk Management Services, Inc.
1525 Kautz Road Suite 100
West Chicago, IL 60185
Tom_Kaiser@ajg.com
www.ajg.com
16.E.19.b
Packet Pg. 2404 Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and Related Insurance for FY 18)
Collier County Board of County Commissioners
Arthur J. Gallagher Risk Management Services, Inc.
Table of Contents
Service Team ............................................................................................................................................................ 3
Named Insureds ....................................................................................................................................................... 4
Premium Summary .................................................................................................................................................. 5
Coverage Highlights ................................................................................................................................................ 6
Aircraft Physical Damage and Liability ............................................................................................................. 6
Coverage Highlights .............................................................................................................................................. 12
Aviation General Liability ................................................................................................................................. 12
Insurance Carrier Ratings and Admitted Status ................................................................................................. 14
Claims Reporting By Policy .................................................................................................................................. 16
Changes/Developments ........................................................................................................................................ 17
Proposal Disclosures ............................................................................................................................................ 18
Coverages for Consideration ................................................................................................................................ 20
Bindable Quotations & Compensation Disclosure Schedule ............................................................................ 21
Client Authorization to Bind Coverage ................................................................................................................ 22
16.E.19.b
Packet Pg. 2405 Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and Related Insurance for FY 18)
Collier County Board of County Commissioners
3
Arthur J. Gallagher Risk Management Services, Inc.
Service Team
Tom Kaiser has primary servicing responsibility for your company. We operate using a team approach. Your Service
Team consists of:
NAME/TITLE PHONE/FAX/MOBILE EMAIL
Tom Kaiser
Area Vice President
800-327-2222(p)
866-212-1654(f)
402-430-6192(c)
Tom_Kaiser@ajg.com
Diane Jelinek
Client Service Manager
630-549-3602(p)
866-212-1654(f)
Diane_Jelinek@ajg.com
Tom Surgalski
Claims Advisor
630-549-3611(p)
866-212-1654(f)
724-816-7743(c)
Tom_Surgalski@ajg.com
Arthur J. Gallagher Risk Management Services, Inc.
Phone Number: (630) 584-7552
16.E.19.b
Packet Pg. 2406 Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and Related Insurance for FY 18)
Collier County Board of County Commissioners
4
Arthur J. Gallagher Risk Management Services, Inc.
Named Insureds
NAMED INSUREDS LINE OF COVERAGE (LOC)
Collier County Board Of County Commissioners Aircraft Physical Damage and Liability
Aviation General Liability
Note: Any entity not named in this proposal, may not be an insured entity. This may include partnerships and joint
ventures.
16.E.19.b
Packet Pg. 2407 Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and Related Insurance for FY 18)
Collier County Board of County Commissioners 5 Arthur J. Gallagher Risk Management Services, Inc. Premium Summary LINE OF COVERAGE EXPIRING PROGRAMPROPOSED PROGRAMCARRIER(EXPIRING) ACTUAL COST(EXPIRING) CARRIER ESTIMATED COST PERCENT CHANGE DOLLAR CHANGE Aircraft Physical Damage and Liability Member Companies of Global Aerospace $38,512 Member Companies of Global Aerospace Premium $38,512 0% $0 Aviation General Liability Member Companies of Global Aerospace $6,865 Member Companies of Global Aerospace Premium $6,865 0% $0 Total Estimated Program Cost $45,377 $45,377 Quote from Member Companies of Global Aerospace is valid until October 1, 2017. Premium for the above policies are due and payable as billing in full or as insurance company installments. Premiums may be financed subject to acceptance by an approved finance company. Following acceptance, completion (and signature) of a premium finance agreement with the specified down payment is required. Gallagher is responsible for the placement of the following lines of coverage: Aircraft Physical Damage and Liability and Aviation General Liability 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 Gallaher representative. 16.E.19.bPacket Pg. 2408Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and
Collier County Board of County Commissioners 6 Arthur J. Gallagher Risk Management Services, Inc. Coverage Highlights Coverage: Aircraft Physical Damage and Liability Carrier: Member Companies of Global Aerospace / Global Aerospace, Inc Policy Period: October 1, 2017 to October 1, 2018 The following is a general summary of the Insuring Agreement. Refer to actual policy form for complete terms and conditions. Aircraft Schedule Aircraft Registration Number Seats 1999 Eurocopter EC 135T1 N911CK 1 + 5 Aircraft Coverage Reg. Number Insured Value1 Coverage Hull Premium Hull WarPremium Limit of Liability Each Occurrence Liability Premium War Limit of Liability Third Party War Limit of Liability War Premium Total Premium N911CK $1,200,000 Ground and Flight $31,392 $240 $30,000,000 $6,880 $30,000,000 $30,000,000 Included $38,272 1 Valuation – Agreed Insured Value basis. Other Aircraft Coverage Reg. Number Medical Limit Deductibles Each Passenger Each Crew Member Premium Not in Motion In Motion N911CK $25,000 $25,000 Included $1,000 $10,000 Approved Use Air Ambulance, All Operations of the Named Insured Pilot Provisions The policy shall not apply while a scheduled aircraft is in flight unless operated by: Open Pilot Provisions: Any appropriately rated pilot approved by the Chief Pilot of the Named Insured or their designee. 16.E.19.bPacket Pg. 2409Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and
Collier County Board of County Commissioners 7 Arthur J. Gallagher Risk Management Services, Inc. Policy Territory Worldwide Liability Coverage Coverage Limit Liability for the use of temporary substitute aircraft Each Occurrence $30,000,000 Maximum Number of Seats 40 Liability for the use of non-owned aircraft Each Occurrence $30,000,000 Maximum Number of Seats 40 Grace Period - Number of Days 30 Liability for property damage to substitute aircraft Each Occurrence $10,000,000 Deductible None Maximum Number of Seats 40 Liability for property damage to non-owned aircraft Each Occurrence $5,500,000 Deductible None Maximum Number of Seats 40 Liability for the use of aviation premises Each Occurrence $30,000,000 Liability for non-owned hangars and their contents Each Occurrence $1,000,000 Liability for personal effects and baggage expense Each Passenger $15,000 Each Crew Member $15,000 Deductible None Liability for the sale of aircraft, aircraft parts or services Each Occurrence $30,000,000 16.E.19.bPacket Pg. 2410Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and
Collier County Board of County Commissioners 8 Arthur J. Gallagher Risk Management Services, Inc. Liability Coverage Coverage Limit Passenger voluntary settlement including crew Each Passenger $1,000,000 Each Crew Member $1,000,000 Each Occurrence $6,000,000 Maximum Weekly $1,000 Maximum Period - Weeks 52 Non-owned passenger voluntary settlement including crew Each Passenger $1,000,000 Each Crew Member $1,000,000 Each Occurrence $6,000,000 Maximum Weekly $1,000 Maximum Period - Weeks 52 Liability for personal injury Each Occurrence $25,000,000 Liability for fire damage to real property Each Occurrence $500,000 Liability under contractual agreements Each Occurrence $30,000,000 Liability for hangarkeepers operations Each Occurrence $10,000,000 Deductible per Aircraft Liability for garagekeepers Any One Auto $1,000,000 Any One Loss $1,000,000 Deductible Per Auto None Liability for the operation of an auto while on airport premises Each Occurrence $30,000,000 Liability for cargo Each Occurrence $250,000 Deductible None Liability for the operation of mobile equipment Each Occurrence $30,000,000 16.E.19.bPacket Pg. 2411Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and
Collier County Board of County Commissioners 9 Arthur J. Gallagher Risk Management Services, Inc. Liability Coverage Coverage Limit Liability for newly acquired aircraft Each Occurrence $30,000,000 Number of Seats 6 Grace Period - Number of Days 60 *Some of the limits scheduled herein may be part of, and not in addition to, the policy limit. Please refer to the actual policy. Physical Damage Coverage Coverage Limit Physical damage coverage for spare engines Each Occurrence $2,000,000 Deductible None Physical damage coverage for spare parts, avionics and accessories Each Occurrence $2,000,000 Deductible None Physical damage coverage for mechanics tools Each Loss $180,000 Deductible $500 Physical damage coverage for increased value of scheduled aircraft Each Aircraft $20,000,000 Deductible None Automatic insurance for newly acquired aircraft Each Occurrence $20,000,000 Number of Days to Report 60 Maximum Seats 6 Medical Expenses Coverage Limit With respect to any temporary substitute aircraft Each Passenger $25,000 Each Crew Member $25,000 With respect to any non-owned aircraft Each Passenger $25,000 Each Crew Member $25,000 16.E.19.bPacket Pg. 2412Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and
Collier County Board of County Commissioners 10 Arthur J. Gallagher Risk Management Services, Inc. Medical Expenses Coverage Limit With respect to any aviation premises Each Person $25,000 Each Occurrence $500,000 Additional Coverage Coverage Limit Temporary replacement aircraft rental expense Each Day $10,000 Each Loss $900,000 Minimum Number of Days 5 Maximum Number of Days 60 Temporary replacement parts rental expenses Each Loss $200,000 Minimum Number of Days 5 Maximum Number of Days 60 Deductible Search and rescue expense Each Loss $1,000,000 Runway foaming and crash control expense Each Occurrence $1,000,000 Emergency and unexpected landing expense Each Occurrence $1,000,000 Trip interruption expense Each Passenger $10,000 Each Crew Member $10,000 Lay-Up credit for scheduled aircraft Percentage 50% Number of Days 30 Applies to physical damage and liability premium Family assistance Included in Policy Unearned premium insurance included on the hull only Included in Policy 16.E.19.bPacket Pg. 2413Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and
Collier County Board of County Commissioners 11 Arthur J. Gallagher Risk Management Services, Inc. Additional Coverage Coverage Limit Profit commission Included in Policy *Some of the limits scheduled herein may be part of, and not in addition to, the policy limit. Please refer to the actual policy. Significant Endorsements (included but not limited to) Additional Insured: City of Naples Airport Authority - Phillips 66 Company - Turbomeca USA, Inc. - -Liability And Medical Expenses Coverage (Applicable to the War, Hi-jacking and Other Perils Exclusion) - -Physical Damage Coverage (Applicable to the War, Hi-jacking and Other Perils Exclusion) - -Adding Back Air Ambulance Operations Significant Exclusions (included but not limited to) Rotorcraft Use Exclusion War Risk Perils (unless endorsed) -TRIA Terrorism (unless endorsed) Workers’ Compensation and Employers’ Liability -Wear and Tear / Deterioration -Mechanical Breakdown Conversion / Embezzlement Significant Coverage Reductions and Exposure or Limit Changes None - Binding Requirements Signed Client Authorization to Bind - Premium / Taxes / Fees Expiring Premium Renewal Premium Policy Total Annual Premium $38,512 $38,512 TRIA/TRIPRA Premium (+Additional Surcharges, Taxes and Fees as applicable) -N/A $688 2016-17 Profit Commission Terms 15% of 70% of all premium exceeding losses 2016-17 Estimated Profit Commission Return: $4,044 16.E.19.bPacket Pg. 2414Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and
Collier County Board of County Commissioners 12 Arthur J. Gallagher Risk Management Services, Inc. Coverage Highlights Coverage: Aviation General Liability Carrier: Member Companies of Global Aerospace / Global Aerospace, Inc Policy Period: October 1, 2017 to October 1, 2018 The following is a general summary of the Insuring Agreement. Refer to actual policy form for complete terms and conditions. Premise Marco Island Executive - MKY - 2005 Mainsail Drive, Naples, FL Immokalee Regional Airport - KIMM - Immokalee, FL Everglades Airpark - X01 - Everglades City, FL And any location owned, rented or occupied by the named insured and any location incidental to the operation of the named insured. Aviation General Liability Coverage Coverage Limit Premise liability Each Occurrence $2,000,000 Products completed operations liability Each Occurrence $2,000,000 Aggregate $2,000,000 Premise medical payments Each Person $1,000 Personal and advertising injury liability Aggregate $2,000,000 Fire legal liability Each Occurrence $100,000 Hangarkeeper's legal liability Each Aircraft $2,000,000 Each Occurrence $2,000,000 Hangarkeeper's deductibles Deductible None Property damage deductibles Deductible None 16.E.19.bPacket Pg. 2415Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and
Collier County Board of County Commissioners 13 Arthur J. Gallagher Risk Management Services, Inc. Additional Coverage Coverage Limit Contractual liability Each Occurrence $2,000,000 Deductible None Non-owned aircraft liability Each Occurrence $2,000,000 *Some of the limits scheduled herein may be part of, and not in addition to, the policy limit. Please refer to the actual policy. Significant Endorsements (included but not limited to) Additional Insured: City of Naples Airport Authority and Shell Aviation, dba Shell Oil Products Company U.S., LLC and Eastern Aviation Fuels, Inc -Annual Renegotiation - Significant Exclusions (included but not limited to) War Risk Perils (unless endorsed) -TRIA Terrorism (unless endorsed) -Workers’ Compensation and Employers’ Liability -Employment Related Practices Bodily Injury and Property Damage Arising out of “Your Product” or “Your Work” (unless endorsed) Significant Coverage Reductions and Exposure or Limit Changes None - Binding Requirements Signed Client Authorization to Bind - Auditable / Frequency This policy is subject to an annual audit. - Premium / Taxes / Fees Expiring Premium Renewal Premium Policy Total Annual Premium $6,865 $6,865 TRIA/TRIPRA Premium (+Additional Surcharges, Taxes and Fees as applicable) -N/A $687 16.E.19.bPacket Pg. 2416Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and
Collier County Board of County Commissioners
14
Arthur J. Gallagher Risk Management Services, Inc.
Insurance Carrier Ratings and Admitted Status
PROPOSED CARRIERS A.M. BEST’S
RATING
ADMITTED/NON-
ADMITTED
American Alternative Insurance Corporation 44.96% A+ XV Admitted
American Commerce Insurance Company 10.00% A XI Admitted
Mitsui Sumitomo Insurance Company of America 9.28% A XV Admitted
National Indemnity Company of the South 23.39% A++ XV Admitted
Tokio Marine America Insurance Company12.37% A++ XV 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 and Levels and Categories
LEVEL CATEGORY Financial Size Categories
A++, A+ Superior
A, A- Excellent FSC I Up to 1,000 FSC IX 250,000 TO 500,000
B++, B+ Good FSC II 1,000 to 2,000 FSC X 500,000 to 750,000
B, B- Fair FSC III 2,000 to 5,000 FSC XI 750,000 to 1,000,000
C++, C+ Marginal FSC IV 5,000 to 10,000 FSC XII 1,000,000 to 1,250,000
C, C- Weak FSC V 10,000 to 25,000 FSC XIII 1,250,000 to 1,500,000
D Poor FSC VI 25,000 to 50,000 FSC XIV 1,500,000 to 2,000,000
E Under Regulatory Supervision FSC VII 50,000 to 100,000 FSC XV 2,000,000 or more
F In Liquidation FSC VIII 100,000 to 250,000
S 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 Best’s Rating which attempts to measure the
comparative position of the company or association against industry averages. A Best’s 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/ratings/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’s 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.
Best’s 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
concerning the rating of the carrier which may change.
16.E.19.b
Packet Pg. 2417 Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and Related Insurance for FY 18)
Collier County Board of County Commissioners
15
Arthur J. Gallagher Risk Management Services, Inc.
16.E.19.b
Packet Pg. 2418 Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and Related Insurance for FY 18)
Collier County Board of County Commissioners
16
Arthur J. Gallagher Risk Management Services, Inc.
Claims Reporting By Policy
Direct Reporting
Immediately report all claims for the following lines of coverage to the insurance carrier.
Helicopter Claims
Kevin Twiss , Global Aerospace Claims Manager
Direct #: 770-634-8701
E-mail address: Ttwiss@global-aero.com
Airport Claims
Nancy Karlen Global Aerospace Senior Claims Representative Manager
Direct #: 404-918-0174
E-mail address: nkarlen@global-aero.com
16.E.19.b
Packet Pg. 2419 Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and Related Insurance for FY 18)
Collier County Board of County Commissioners
17
Arthur J. Gallagher Risk Management Services, Inc.
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 new 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.
16.E.19.b
Packet Pg. 2420 Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and Related Insurance for FY 18)
Collier County Board of County Commissioners
18
Arthur J. Gallagher Risk Management Services, Inc.
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
Disclaimer
The proposal is an outline of certain terms and conditions of the insurance proposed by 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
Disclosure
One of the core values highlighted in The Gallagher Way states, “We are an Open Society,”
and our 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 client’s 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
16.E.19.b
Packet Pg. 2421 Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and Related Insurance for FY 18)
Collier County Board of County Commissioners
19
Arthur J. Gallagher Risk Management Services, Inc.
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 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.
2850 Golf Rd., 8th Floor
Rolling Meadows, IL 60008
TRIA/TRIPRA
Disclaimer
If this proposal contains options to purchase TRIA/TRIPRA coverage, the proposed
TRIA/TRIPRA 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 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.
Actuarial
Disclaimer
The information contained in this proposal is based on the historical loss experience and
exposures 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.
16.E.19.b
Packet Pg. 2422 Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and Related Insurance for FY 18)
Collier County Board of County Commissioners
20
Arthur J. Gallagher Risk Management Services, Inc.
Coverages for Consideration
Overview
A proposal for any of the coverages can be provided.
The recommendations and consideration 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.
Property/ Inland Marine
Crime
Automobile
Workers' Compensation
Umbrella
Boiler & Machinery
Other Coverage Considerations
Employment-Related Practices Liability
Directors’ and Officers’ Liability
Environmental Pollution Liability
Professional Liability
Fiduciary Liability
Cyber Risk
Terrorism
Ocean Marine
Kidnap and Ransom
Foreign Exposures
Trade Credit Insurance
Pilot
Life Insurance
Loss of License
Personal Non-Owned Aircraft Liability
Commercial/CFI Non-Owned Aircraft Liability
Aircraft
Diminution of Value
Turbine Engine Mechanical Breakdown
Excess Liability
16.E.19.b
Packet Pg. 2423 Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and Related Insurance for FY 18)
Collier County Board of County Commissioners 21 Arthur J. Gallagher Risk Management Services, Inc. Bindable Quotations & Compensation Disclosure Schedule Client Name: Collier County Board of County Commissioners WHOLESALER, MGA OR INTERMEDIARYCOVERAGE(S) CARRIER NAME(S) ESTANNUAL PREMIUM 1 COMM. % OR FEE 2 NAME 3 COMM % / FEE $ 4 AJG OWNED? YES/NO Aircraft Physical Damage and Liability Member Companies of Global Aerospace $38,512 15% Global Aerospace * No Aviation General Liability Member Companies of Global Aerospace $6,865 15% Global Aerospace* No 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. 16.E.19.bPacket Pg. 2424Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and
Collier County Board of County Commissioners
22
Arthur J. Gallagher Risk Management Services, Inc.
Client Authorization to Bind Coverage
After careful consideration of Gallagher’s proposal dated August 21, 2017, we accept the following coverage(s).
Please check the desired coverage(s):
LINE OF COVERAGE CARRIER
Accept Reject Aircraft Physical Damage and Liability
Annual Premium: $38,512
Member Companies of Global
Aerospace
Accept Reject Aviation General Liability
Annual Premium: $6,865
Member Companies of Global
Aerospace
TRIA/TERRORISM
COVERAGE LINE OF COVERAGE CARRIER
Accept Reject
Bind TRIA Terrorism Coverage Act as
quoted
Aircraft Physical Damage and Liability
Member Companies of Global
Aerospace
Bind TRIA Terrorism Coverage Act as
quoted
Aviation General Liability
Member Companies of Global
Aerospace
Provide Quotations or Additional Information on the Following Coverage Considerations:
Yes No Property/ Inland Marine
Yes No Crime
Yes No Automobile
Yes No Workers' Compensation
Yes No Umbrella
Yes No Boiler & Machinery
Yes No Employment-Related Practices Liability
Yes No Directors’ and Officers’ Liability
Yes No Environmental Pollution Liability
Yes No Professional Liability
Yes No Fiduciary Liability
Yes No Cyber Risk
Yes No Terrorism
Yes No Ocean Marine
Yes No Kidnap and Ransom
Yes No Foreign Exposures
Yes No Trade Credit Insurance
Yes No Pilot - Life Insurance
Yes No Pilot - Loss of License
Yes No Pilot - Personal Non-Owned Aircraft Liability
Yes No Pilot - Commercial/CFI Non-Owned Aircraft Liability
Yes No Aircraft - Diminution of Value
Yes No Aircraft - Turbine Engine Mechanical Breakdown
Yes No Aircraft - Excess Liability
16.E.19.b
Packet Pg. 2425 Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and Related Insurance for FY 18)
Collier County Board of County Commissioners
23
Arthur J. Gallagher Risk Management Services, Inc.
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:
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 that you shall not be liable for any indirect, consequential or punitive damages.
By:
Signature Specify: owner, partner or corporate officer
Collier County Board of County Commissioners
Print Name
Date:
16.E.19.b
Packet Pg. 2426 Attachment: Aircraft and Airport Renewal 17-18 Gallagher Aviation (3717 : Purchase of Casualty and Related Insurance for FY 18)
Collier County
Cyber Insurance
This document is intended to outline the process of evaluating the exposure to a data breach and
obtaining Cyber Insurance quotes for the County’s review.
Background
Data breaches today are now a fact of life. Some security professionals say “either you have been
breached or you just don’t know that you have”. High profile data breaches resulting in the loss
of sensitive personal information are in the news regularly.
Cyber risks include:
A. Costs of data breach response and notification and monitoring requirements
B. Harm to the County’s reputation
C. Business Interruption loss
D. Litigation costs arising from third party claims
Almost all states have passed legislation requiring organizations to notify individuals and credit
reporting agencies of a breach. The responsibilities of Collier County are outlined in Florida
Statute 501.
A. Each governmental entity shall take reasonable measures to protect and secure data in
electronic form containing personal information.
B. Provide written notice as soon practicable but no later than 30 days after the determination of
a security breach affecting 500 or more individuals to the Florida Department of Legal
Affairs.
C. Give written notice to each individual whose personal information was accessed as the result
of the security breach as quickly as possible without unreasonable delay.
D. Provide notification to Credit Reporting Agencies without unreasonable delay.
The potential costs to the County of compliance in the event of a data breach can be substantial.
From 2013 to 2015, the cost of cybercrimes quadrupled. From 2015 to 2019, those costs are
expected to quadruple again. In 2016 reported data breaches increased by 40%.
A listing of some of the most significant data breach claims from 2017 are attached.
Cyber Insurance
The purpose of Cyber Insurance is to protect the County’s “digital” assets by transferring the risk
of a security breach over to an insurance company instead of the County bearing those costs
alone.
Coverage provisions:
A. Third Party Liability Coverage:
1. Failure to protect personal information
16.E.19.c
Packet Pg. 2427 Attachment: Collier Cyber Marketing Report (3717 : Purchase of Casualty and Related Insurance for FY 18)
2. Failure to implement privacy security practices
3. Failure to prevent a cyber security breach
B. First Party Coverage – direct costs the County incurs as a result of a cyber security breach:
1. Computer forensics
2. Notification costs (either as required by data breach reporting requirements or voluntary
notification of individuals who are not required to be notified)
3. Call center management
4. Credit or identity protection, restoration and monitoring
5. Medical identity restoration
6. Public relations and crisis communications.
C. Why Buy Cyber Insurance
1. The threat of a data breach is dynamic and growing. It is difficult to sustain the ability to
successfully combat cyber attacks.
2. Cyber coverage will pay for:
a. The cost of forensic investigators to determine the source and extent of a data breach
and the costs of notification and monitoring.
b. Fines and penalties as a result of regulatory enforcement action.
c. The cost to restore or recreate that have been damaged or destroyed.
d. The loss of business income caused by the corruption or disablement of a computer
network from a cyber attack.
e. The cost of ransom to end an extortion threat (ransomware).
f. The cost of attorneys or notification specialists and credit monitoring companies.
g. The costs of hiring public relations specialists to help restore and protect the County’s
reputation.
Marketing Summary
A. Thirteen insurance carriers were asked to provide quotations. Of those, 4 offered terms.
B. Of those that declined to quote, the responses were:
1. Beazley (Underwriters at Lloyds) - the County is too large for them to quote.
2. Royal Specialty Underwriters - they could not offer terms at the requested pricing.
3. Chubb/ACE – they could not offer terms at the requested pricing. Indicated $75,000
annual premium for $1,000,000 limit, $25,000 retention
4. Great American Insurance – cannot quote municipalities with greater than 50,000
population
5. Hiscox Insurance – they could not offer terms at the requested pricing.
6. Markel Insurance – could not offer terms at the requested pricing. Indicated $47,906
annual for $1,000,000 limit, $100,000 retention.
7. Travelers Insurance - they could not offer terms at the requested pricing. Indicated
$79,000 annual for $1,000,000 limit.
8. Continental Casualty Company – not willing to quote municipality accounts.
9. NAS (Underwriters at Lloyds) – cannot quote municipalities with greater than 50,000
population.
16.E.19.c
Packet Pg. 2428 Attachment: Collier Cyber Marketing Report (3717 : Purchase of Casualty and Related Insurance for FY 18)
Comparison of Quotes
Indian Harbor
Insurance
Company
AIG Specialty
Insurance
Underwriters at
Lloyds (Ascent
Underwriting,
LLP)
Underwriters at
Lloyds (THB
Insurance
Services)
A.M Best Rating A, XV A, XV A, XV A, XV
Policy Form Claims Made Claims Made Claims Made Claims Made
Retroactive Date None – Full
Prior Acts
Coverage
Policy
Inception Date
None – Full
Prior Acts
Coverage
Policy
Inception Date
Policy Limit $1,000,000
Combined for
both First and
Third Party
Coverage
$1,000,000
Combined for
both First and
Third Party
Coverage
$1,000,000
Combined for
both First and
Third Party
Coverage
$1,000,000
Combined for
both First and
Third Party
Coverage
Retention $25,000 $150,000 $100,000 $25,000
Annual
Premium
$26,777 $39,788 $41,500 $23,860
Prior & Pending
Litigation Date
Policy Inception
Date
Policy Inception
Date
Policy Inception
Date
Policy Inception
Date
Continuity Date Policy Inception
Date
Policy Inception
Date
Policy Inception
Date
Policy Inception
Date
A. Recommendation
The true value of Cyber Insurance is the level of immediate and effective response from
the carrier at the time a data breach is discovered. Based on the combination of
coverage, premium cost and our conference call with the company underwriter, we
recommend placement of coverage with Indian Harbor Insurance.
16.E.19.c
Packet Pg. 2429 Attachment: Collier Cyber Marketing Report (3717 : Purchase of Casualty and Related Insurance for FY 18)
Significant Cyber Claims that have Occurred in 2017
E-Sports Entertainment
Association (ESEA)
January 8, 2017: On December 30, 2016, ESEA, one of the largest video gaming communities,
issued a warning to players after discovering a breach. At the time, it wasn’t known what was
stolen and how many people were affected. However, in January, LeakedSource revealed that
1,503,707 ESEA records had been added to its database and that leaked records included a great
deal of private information: registration date, city, state, last login, username, first and last name,
bcrypt hash, email address, date of birth, zip code, phone number, website URL, Steam ID, Xbox
ID, and PSN ID.
InterContinental Hotels Group
(IHG)
February 7, 2017: IHG, the company that owns popular hotel chains like Crowne Plaza,
Holiday Inn, Candlewood Suites, and Kimpton Hotels, announced a data breach that affected 12
of its properties. Malware was found on servers which processed payments made at on-site
restaurants and bars; travelers that used cards at the front desk did not have information taken.
The malware was active from August 2016 to December 2016 and stolen data includes
cardholder names, card numbers, expiration dates, and internal verification codes. Some targeted
locations include Sevens Bar & Grill at Crowne Plaza San Jose-Silicon Valley, the Bristol Bar &
Grille at the Holiday Inn in San Francisco’s Fisherman’s Wharf, InterContinental San Francisco,
Aruba’s Holiday Inn Resort, and InterContinental Los Angeles Century City.
River City Media
March 6, 2017: A group of spammers, operating under the name River City Media,
unknowingly released their private data into cyberspace after failing to properly configure their
backups. The leak known as Spammergate included Hipchat logs, domain registration records,
accounting details, infrastructure planning, production notes, scripts, business affiliations,
and more. The biggest discovery, however, was a database of 1.4 billion email accounts, IP
addresses, full names, and some physical addresses. Thankfully, the “good guys” found the
information—in this situation, it was Chris Vickery, a security researcher for MacKeeper—and
reported everything to the proper authorities. At this time, it’s unclear what’s going to happen to
River City Media. While law enforcement is involved, groups like River City Media often have
all sorts of aliases and affiliate programs—no one can be sure they will all be wiped out.
Dun & Bradstreet
March 15, 2017: Dun & Bradstreet, a huge business services company, found its marketing
database with over 33 million corporate contacts shared across the web in March 2017. The firm
claims its systems were not breached, but that it has sold the 52GB database to thousands of
companies across the country; it’s unclear which of those businesses suffered the breach that
exposed the records. Millions of employees from organizations like the U.S. Department of
Defense, the U.S. Postal Service, AT&T, Wal-Mart, and CVS Health had information leaked,
and the database may have included full names, work email addresses, phone numbers, and other
business-related data.
16.E.19.c
Packet Pg. 2430 Attachment: Collier Cyber Marketing Report (3717 : Purchase of Casualty and Related Insurance for FY 18)
UNC Health Care
March 20, 2017: 1,300 letters were sent to prenatal patients who had received care in the
University of North Carolina Health Care System about a potential data breach they may have
been affected by. UNC Health Care revealed that women who had completed pregnancy home
risk screening forms at prenatal appointments between 2014 and 2017 at the Women’s Clinic at
N.C. Women’s Hospital and UNC Maternal-Fetal Medicine at Rex may have mistakenly had
their personal information transmitted to local county health departments. Breached information
included full names, addresses, races, ethnicities, Social Security numbers, and a variety of
health-related information. The county health departments are subject to federal and state
privacy laws and must protect all information they received; it was also requested that they
electronically purge electronic information about non-Medicaid patients.
Chipotle
April 25, 2017: Chipotle posted a “Notice of Data Security Incident” on its website to let
customers know about unauthorized activity it detected on the network that supports in-
restaurant payment processes. It believes payment card transactions that occurred from
March 24, 2017 through April 18, 2017 may have been affected. The investigation is still
ongoing and at the time the notice was published, the company did not have any additional
information; it just said that it believes it has stopped the unauthorized activity and it’s
too early to give more details.
Gmail
May 3, 2017: Gmail users were targeted in a sophisticated phishing scam that was seeking to
gain access to accounts through a third-party app. The emails were made to look like they were
from a user’s trusted contact and notified the individual that they wanted to share a Google Doc
with them. Once clicked, the link led to Google’s real security page where the person was
prompted to allow a fake Google Docs app to manage his or her email account. Google put a
stop to the scam in about one hour and the company says they estimate about 1 million users may
have been affected.
Brooks Brothers
May 12, 2017: If you shopped at a Brooks Brothers retail store or outlet in the last year and used
a credit or debit card, you may have had your card data stolen. Brooks Brothers revealed a
breach that affected some of their stores between April 4, 2016, and March 1, 2017; the
retailer has not revealed which exact locations were targeted yet. A forensic investigation
showed an unauthorized individual installed malicious software on some payment processing
systems that was capable of collecting payment card information. Brooks Brothers said the issue
has been resolved but did not provide any other details upon announcing the breach.
Blue Cross Blue Shield /Anthem
June 27, 2017: Health insurance company Anthem has agreed to a $115 million settlement in
connection with a 2015 data breach that impacted 80 million of their customers across their
Anthem Blue Cross and Blue Shield, Blue Cross and Blue Shield of Georgia, Empire Blue Cross
and Blue Shield, Amerigroup, Caremore, Unicare, Healthlink, and DeCare brands.Although
Anthem acted quickly, notifying the FBI and working with a cyber security firm as soon as it
was made aware of the breach, the breadth of the initial breach and subsequent costly payout just
goes to reinforce the need for companies of all sizes to take cyber security issues seriously.
16.E.19.c
Packet Pg. 2431 Attachment: Collier Cyber Marketing Report (3717 : Purchase of Casualty and Related Insurance for FY 18)
16.E.19.c
Packet Pg. 2432 Attachment: Collier Cyber Marketing Report (3717 : Purchase of Casualty and Related Insurance for FY 18)
16.E.19.d
Packet Pg. 2433 Attachment: Collier Cyber Pricing Options- Indian Harbor (3717 : Purchase of Casualty and Related Insurance for FY 18)