Agenda 09/25/2018 Item #16E 409/25/2018
EXECUTIVE SUMMARY
Recommendation to approve the purchase of Liability, Automobile, Workers’ Compensation,
Aircraft, Airport and other insurance coverage for FY 2019 in the estimated annual amount of
$921,569.
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 Inc. (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.
For the FY 2019 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
2019 renewal are as follows.
Total premium for all coverage increased 1.56% or $14,170.
Ratable exposures increased 4.5%.
Liability premiums increased 5.8% due to higher ratable exposures
Excess Workers' Compensation premium decreased 6.59% due to a 15% reduction in the rate.
Ratable payroll increased 9.9%.
aritime Liability premium decreased 23.07%.
Aircraft Hull and Liability increased 5%, however, there are several coverage improvements.
Cyber insurance decreased 11.15%, however the Liability limit increased from $3,000,000 to
$5,000,000 and the deductible decreased from $50,000 to $25,000.
Premium for the remaining coverage lines were largely unchanged or reduced.
The property insurance program renews on April 1, 2019 and is not included in this
recommendation.
Flood insurance is not included in this recommendation and will be submitted separately.
All carriers hold a Best’s financial rating of “A, Superior” or higher.
FISCAL IMPACT: Estimated annual premiums are $921,569 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.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
item.
16.E.4
Packet Pg. 2072
09/25/2018
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 the purchase of insurance coverage as outlined in the Executive
Summary and the Renewal Summary Sheet effective October 1, 2018; the rejection of Uninsured Motorist
Insurance except for scheduled take home vehicles, authorizing the County Manager or designee to
execute the necessary rejection forms; and, to authorize the County Manager or designee to complete the
applications or other documents necessary to bind coverage and services effective October 1, 2018.
Prepared by: Jeffrey A. Walker, CPCU, ARM, Division Director, Risk Management Division
ATTACHMENT(S)
1. Collier Casualty Renewal Summary (2) (PDF)
2. Excess WC Options (PDF)
3. 18-19 Aviation Insurance Revised Renewal Proposal (PDF)
4. IRMS Renewal Summary (PDF)
16.E.4
Packet Pg. 2073
09/25/2018
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.4
Doc ID: 6565
Item Summary: Recommendation to approve the purchase of Liability, Automobile, Workers’
Compensation, Aircraft, Airport and other insurance coverage for FY 2019 in the estimated annual
amount of $921,569.
Meeting Date: 09/25/2018
Prepared by:
Title: Division Director - Risk Management – Risk Management
Name: Jeff Walker
08/29/2018 3:14 PM
Submitted by:
Title: Division Director - Risk Management – Risk Management
Name: Jeff Walker
08/29/2018 3:14 PM
Approved By:
Review:
Administrative Services Department Paula Brethauer Level 1 Division Reviewer Completed 08/30/2018 1:04 PM
Administrative Services Department Len Price Level 2 Division Administrator Review Completed 09/11/2018 3:27 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 09/11/2018 4:13 PM
Office of Management and Budget Laura Wells Additional Reviewer Completed 09/11/2018 4:58 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 09/12/2018 7:30 AM
County Manager's Office Geoffrey Willig Level 4 County Manager Review Completed 09/17/2018 11:09 AM
Board of County Commissioners MaryJo Brock Meeting Pending 09/25/2018 9:00 AM
16.E.4
Packet Pg. 2074
Collier County Government
FY 19 Casualty Insurance
Renewal Summary
FY 18 Premium and Limits
All Lines Aggregate $ 573,493 $ 543,471 $ 574,895 5.78%
Limits Purchased:$5,000,000 General Liability $5,000,000 General Liability $5,000,000 General Liability
$5,000,000 Auto Liability $5,000,000 Auto Liability $5,000,000 Auto Liability
$5,000,000 Public Officials $5,000,000 Public Officials $5,000,000 Public Officials
$600,000 Workers Comp $600,000 Workers Comp $600,000 Workers Comp
$1,000,000 Auto Physical $1,000,000 Auto Physical $1,000,000 Auto Physical
Damage Replacement Damage Replacement Damage Replacement
$1,000,000 Crime $1,000,000 Crime $1,000,000 Crime
Terrorism - Liability $ 15,500 $ 14,500 $ 14,500 0.00%Underwriters at
Lloyds
$10,000,000 per occurrence/
$20,000,000 aggregate
$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 $ 9,197 1.23%
Limits Purchased:$4,000,000 Employee $4,000,000 Employee $4,000,000 Employee
Dishonesty Dishonesty Dishonesty
$4,000,000 Computer $4,000,000 Computer $4,000,000 Computer
and Funds Transfer Fraud and Funds Transfer Fraud and Funds Transfer Fraud
$1,000,000 Faithful Performance $1,000,000 Faithful Performance $1,000,000 Faithful Performance
Excess Workers’ Comp: $ 152,789 $ 166,383 $ 155,411 -6.59%
Limits Purchased:Statutory Statutory Statutory
Reported Payrolls (est):$124,522,420 (projected)$135,601,398 (projected)$149,003,444 9.90%
Rate per $100 Payroll:0.1227 0.1227 0.1043 -15.00%
Statutory Accidental Death $ 19,546 $ 17,567 $ 17,567 0.00%
Limits Purchased:Statutory Statutory Statutory
Pollution Liability $ 34,926 $ 36,683 $ 36,683 0.00%
Limits Purchased:$2,000,000 each loss $2,000,000 each loss $2,000,000 each loss
$4,000,000 aggregate $4,000,000 aggregate $4,000,000 aggregate
Maritime Employers Liability $ 23,460 $ 24,000 $ 15,000 -37.50%
Limits Purchased:$1,000,000 $1,000,000 $1,000,000
Excess Maritime Employers
Liability
$ 15,000 $ 15,000 $ 15,000 0.00%
Limits Purchased:$4,000,000 $4,000,000 $4,000,000
Cyber Insurance Not Purchased $ 52,108 $ 46,300 -11.15%
Limits Purchased:$3,000,000 $5,000,000
$1,000,000 American
Alternative
Insurance
$25,000 Indian Harbor Provides coverage for liability from a data breach;
defense costs; and mitigation/compliance costs
associated with a breach response
$600,000 retention Arch Insurance Excess Workers Compensation layer to provide
statutory coverage pursuant to FS 440.
None Hartford Insurance Death benefits provided to law enforcement officers
and extended to paramedic staff pursuant to FS
112.19.
$100,000 deductible per loss.Indian Harbor 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. Three year rate guarantee through FY 2014.
$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.
Policy Type FY 17 Premium and Limits FY 19 Premium and Limits % Change FY 19 Deductibles and Notes
$1,000,000 retention Hanover Insurance
Purpose
$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
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.
$100,000 retention per occurrence.Terrorism is excluded from most policies. This
program covers liability arising out of acts of foreign
and domestic terrorism otherwise excluded.
Carrier/Vendor
Excess crime layer providing coverage for employee
dishonesty, Faithful performance by public officials
and Computer and Funds Transfer Fraud.
Page 1
16.E.4.a
Packet Pg. 2075 Attachment: Collier Casualty Renewal Summary (2) (6565 : Approval to Purchase Casualty Insurance for
Collier County Government
FY 19 Casualty Insurance
Renewal Summary
Aircraft Insurance (Helicopter) $ 51,430 $ 48,845 $ 51,287 5.00%
Limits Purchased: $5,500,000 Hull Value $1,200,000 Hull Value $1,592,000 Hull Value
$30,000,000 Liability $30,000,000 Liability $30,000,000 Liability
$500,000 Admitted Liability/Seat; $500,000 Admitted Liability/Seat; $1,000,000 Admitted Liability/Seat;
$3,000,000 Total $3,000,000 Total $6,000,000 Total
Airport Liability $ 6,865 $ 6,865 $ 7,029 2.39%
Limits Purchased:$2,000,000 Premises Liability $2,000,000 Premises Liability $2,000,000 Premises Liability
$2,000,000 Hangarkeepers $2,000,000 Hangarkeepers $2,000,000 Hangarkeepers
Contingent Law Enforcement
Professional
$ 25,000 $ 25,000 $ 25,000 0.00%
Limits Purchased:$3,100,000 Limit $3,100,000 Limit $3,100,000 Limit
$3,300,000 Aggregate $3,300,000 Aggregate $3,300,000 Aggregate
Total Fixed Costs 928,062$ 907,399$ 921,569$ 1.56%14,170$
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.
None Florida Sheriff’s
Self-insurance
Fund
Coverage to protect the Board of Commissioners
for negligent acts arising out of the law
enforcement activities of the Sheriff pursuant to
various Florida Statutes, case law and Federal
Statutes.
None Global Aviation
Underwriters
$50,000 Rotors in Motion/ $1,000
Rotors Not in Motion . Premium
does not include a profit sharing
credit of $4,437 for safe operation.
Net premium is $46,850.
Global Aviation
Underwriters
Liability and physical damage (hull) coverage
resulting from the operation of the EMS aircraft.
Includes admitted liability coverage (death
benefit) to crew and passengers.
Page 2
16.E.4.a
Packet Pg. 2076 Attachment: Collier Casualty Renewal Summary (2) (6565 : Approval to Purchase Casualty Insurance for
16.E.4.b
Packet Pg. 2077 Attachment: Excess WC Options (6565 : Approval to Purchase Casualty Insurance for FY 19)
Insurance Proposal
Prepared For
Collier County Board of
County Commissioners
3311 Tamiami Trail East
Naples, FL 34112
Presented: July 31, 2018
Revised: August 29, 2018
Aircraft Hull and Liability
Aviation General Liability
Effective: October 1, 2018 to October 1, 2019
Scott Bolger
Area Executive Vice President
Arthur J. Gallagher Risk Management Services, Inc.
2580 Foxfield Road Suite 203
Saint Charles, IL 60174
scott_bolger@ajg.com
www.ajg.com
16.E.4.c
Packet Pg. 2078 Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty Insurance for FY 19)
Collier County Board of County Commissioners
Arthur J. Gallagher Risk Management Services, Inc.
Table of Contents
Service Team ............................................................................................................................................................ 3
Named Insureds ....................................................................................................................................................... 4
Marketplace Review ................................................................................................................................................. 5
Premium Summary .................................................................................................................................................. 6
Coverage Highlights ................................................................................................................................................ 7
Aircraft Physical Damage and Liability ............................................................................................................. 7
Coverage Highlights .............................................................................................................................................. 14
Aviation General Liability ................................................................................................................................. 14
Claims Reporting By Policy .................................................................................................................................. 17
Insurance Carrier Ratings and Admitted Status ................................................................................................. 18
Changes/Developments ........................................................................................................................................ 20
Proposal Disclosures ............................................................................................................................................ 21
Coverages for Consideration ................................................................................................................................ 23
Bindable Quotations & Compensation Disclosure Schedule ............................................................................ 24
Client Authorization to Bind Coverage ................................................................................................................ 25
16.E.4.c
Packet Pg. 2079 Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty Insurance for FY 19)
Collier County Board of County Commissioners
3
Arthur J. Gallagher Risk Management Services, Inc.
Service Team
Scott Bolger has primary servicing responsibility for your company. We operate using a team approach. Your
Service Team consists of:
NAME/TITLE PHONE/FAX/MOBILE EMAIL
Scott Bolger
Area Executive Vice President
847-586-0802(p)
847-902-8108(c)
scott_bolger@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.4.c
Packet Pg. 2080 Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty Insurance for FY 19)
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
your boards, commissions, or agencies and their
elective officers or members thereof
Aircraft Hull and Liability
Collier County Board of County Commissioners
your boards, commissions, or agencies and their
elective officers or members thereof
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.4.c
Packet Pg. 2081 Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty Insurance for FY 19)
Collier County Board of County Commissioners
5
Arthur J. Gallagher Risk Management Services, Inc.
Marketplace Review
We approached the following carriers in an effort to provide the most comprehensive and cost effective insurance
program.
CARRIER LINE OF COVERAGE CARRIER POSITION
Global Aerospace Aircraft Hull and Liability
Aviation General Liability
Quoted
Chubb Aircraft Hull and Liability
Aviation General Liability
Quoted Aircraft Hull and Liability
Airport Quote pending
QBE Aircraft Hull and Liability
Aviation General Liability
Declined
16.E.4.c
Packet Pg. 2082 Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty Insurance for FY 19)
Collier County Board of County Commissioners 6 Arthur J. Gallagher Risk Management Services, Inc. Premium Summary LINE OF COVERAGE EXPIRING PROGRAM PROPOSED PROGRAM CARRIER (EXPIRING) ACTUAL COST (EXPIRING) CARRIER ESTIMATED COST PERCENT CHANGE DOLLAR CHANGE Aircraft Hull and Liability Member Companies of Global Aerospace (see companies listed on page 19) $48,845* Member Companies of Global Aerospace (see companies listed on page 19) Premium $51,287 5% $2,442 Aviation General Liability Member Companies of Global Aerospace (see companies listed on page 19) $6,865 Member Companies of Global Aerospace (see companies listed on page 19) Premium $7,029 2.4% $164 Total Estimated Program Cost $55,710 $58,316 Quote from Member Companies of Global Aerospace is valid until October 1, 2018. Quote from Westchester Fire Insurance Company is valid until October 1, 2018. 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 Hull 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. * 2017-18 Maximum Potential Profit Commission: $4,437 16.E.4.cPacket Pg. 2083Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty
Collier County Board of County Commissioners 7 Arthur J. Gallagher Risk Management Services, Inc. Coverage Highlights Coverage: Aircraft Physical Damage and Liability Carrier: Member Companies of Global Aerospace (see companies listed on page 19) Policy Period: October 1, 2018 to October 1, 2019 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 War Premium Limit of Liability Each Occurrence Liability Premium War Limit of Liability2 Third Party War Limit of Liability War Premium Total Premium N911CK $1,592,000* Ground and Flight $43,745 $318 $30,000,000 $7,224 $30,000,000 $30,000,000 Included $51,287 1 Valuation – Agreed Insured Value basis. * Insured value of $1,592,000 includes $392,000 for leased engine. Insured Value will be reduced to $1,200,000 upon return of engine. Other Aircraft Coverage Reg. Number Medical Limit Deductibles Each Passenger Each Crew Member Premium Not in Motion In Motion N911CK $50,000 Increased from $25,000 $50,000 Increased from $25,000 Included $1,000 $10,000 Approved Use 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.4.cPacket Pg. 2084Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty
Collier County Board of County Commissioners 8 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 $4,000,000 Increased from $1,000,000 Liability for personal effects and baggage expense Each Passenger $50,000 Increased from $25,000 Each Crew Member $50,000 Increased from $25,000 Deductible None Liability for the sale of aircraft, aviation products and services Each Occurrence $30,000,000 16.E.4.cPacket Pg. 2085Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty
Collier County Board of County Commissioners 9 Arthur J. Gallagher Risk Management Services, Inc. Liability Coverage Coverage Limit Passenger voluntary settlement including crew for scheduled aircraft Each Passenger $1,000,000 Each Crew Member $1,000,000 Each Occurrence $6,000,000 Maximum Weekly $1,000 Maximum Period - Weeks 52 Passenger voluntary settlement including crew for non-owned aircraft 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 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 $1,000,000 Increased from $250,000 Deductible None Liability for the operation of mobile equipment Each Occurrence $30,000,000 16.E.4.cPacket Pg. 2086Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty
Collier County Board of County Commissioners 10 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, 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 $50,000 Increased from $25,000 Each Crew Member $50,000 Increased from $25,000 With respect to any non-owned aircraft Each Passenger $50,000 Increased from $25,000 Each Crew Member $50,000 Increased from $25,000 16.E.4.cPacket Pg. 2087Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty
Collier County Board of County Commissioners 11 Arthur J. Gallagher Risk Management Services, Inc. Medical Expenses Coverage Limit With respect to any aviation premises Each Person $50,000 Increased from $25,000 Each Occurrence $500,000 Additional Coverage Coverage Limit Temporary replacement aircraft rental expense 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 75% Increased from 50% Number of Days 30 Applies to physical damage and liability premium Family assistance Included in Policy 16.E.4.cPacket Pg. 2088Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty
Collier County Board of County Commissioners 12 Arthur J. Gallagher Risk Management Services, Inc. Additional Coverage Coverage Limit Unearned premium insurance included on the hull only Included in Policy Profit commission Included in Policy 15% of 70% of Annual Premium exceeding losses *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) See coverages listed above - Additional Insured: City of Naples Airport Authority - Additional Insured: Phillips 66 Company - Additional Insured: Turbomeca USA, Inc. Additional Insured: Safran Helicopter Engines Significant Exclusions (included but not limited to) TRIA Terrorism (unless endorsed) Workers’ Compensation and Employers’ Liability - Wear and Tear / Deterioration - Mechanical Breakdown Conversion / Embezzlement Rotorcraft Use Exclusion 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 $48,845 $51,287 TRIA/TRIPRA Premium (+Additional Surcharges, Taxes and Fees as applicable) - N/A $1,040 16.E.4.cPacket Pg. 2089Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty
Collier County Board of County Commissioners 13 Arthur J. Gallagher Risk Management Services, Inc. Alternate Limit Options Limit Additional Annual Premium Annual Premium for liability limit of $50,000,000 Each Occurrence $3,276 16.E.4.cPacket Pg. 2090Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty
Collier County Board of County Commissioners 14 Arthur J. Gallagher Risk Management Services, Inc. Coverage Highlights Coverage: Aviation General Liability Carrier: Member Companies of Global Aerospace (see companies listed on page 19) Policy Period: October 1, 2018 to October 1, 2019 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 $5,000 Increased from $1,000 Personal and advertising injury liability Each Occurrence $2,000,000 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 16.E.4.cPacket Pg. 2091Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty
Collier County Board of County Commissioners 15 Arthur J. Gallagher Risk Management Services, Inc. Aviation General Liability Coverage Coverage Limit Property damage deductibles Piston Aircraft Deductible None Additional Coverage Coverage Limit Contractual liability Each Occurrence $2,000,000 Deductible None War risk liability Each Occurrence $2,000,000 Non-owned aircraft liability Each Occurrence $2,000,000 Number of Seats 40 Increased from 20 *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) See coverages listed above - Significant Exclusions (included but not limited to) TRIA Terrorism (unless endorsed) - Workers’ Compensation and Employers’ Liability - Employment Related Practices Fellow Employee (unless endorsed) 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. - 16.E.4.cPacket Pg. 2092Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty
Collier County Board of County Commissioners 16 Arthur J. Gallagher Risk Management Services, Inc. Premium / Taxes / Fees Expiring Premium Renewal Premium Policy Total Annual Premium $6,865 $7,029 TRIA/TRIPRA Premium (+Additional Surcharges, Taxes and Fees as applicable) - N/A $703 Alternate Limit Options Limit Premium Total Annual Premium for liability limit of $10,000,000 Each Occurrence $11,870 16.E.4.cPacket Pg. 2093Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty
Collier County Board of County Commissioners
17
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.4.c
Packet Pg. 2094 Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty Insurance for FY 19)
Collier County Board of County Commissioners
18
Arthur J. Gallagher Risk Management Services, Inc.
Insurance Carrier Ratings and Admitted Status
PROPOSED CARRIERS A.M. BEST’S
RATING
ADMITTED/NON-ADMITTED
Member Companies of Global Aerospace
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 Company 12.37% A++ XV Admitted
Westchester Fire Insurance Company 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.4.c
Packet Pg. 2095 Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty Insurance for FY 19)
Collier County Board of County Commissioners
19
Arthur J. Gallagher Risk Management Services, Inc.
16.E.4.c
Packet Pg. 2096 Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty Insurance for FY 19)
Collier County Board of County Commissioners
20
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.4.c
Packet Pg. 2097 Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty Insurance for FY 19)
Collier County Board of County Commissioners
21
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
IMPORTANT: The proposal, and any executive summaries included with or supplementing the
proposal outlines 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.
16.E.4.c
Packet Pg. 2098 Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty Insurance for FY 19)
Collier County Board of County Commissioners
22
Arthur J. Gallagher Risk Management Services, Inc.
6. From time to time, Gallagher may participate in insurance company promotional
events or training and development that insurers provide for Gallagher employees.
7. Gallagher strives to find appropriate coverage at a competitive price for our customers.
In order 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.4.c
Packet Pg. 2099 Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty Insurance for FY 19)
Collier County Board of County Commissioners
23
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 (Hangar and contents) Workers' Compensation
16.E.4.c
Packet Pg. 2100 Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty Insurance for FY 19)
Collier County Board of County Commissioners 24 Arthur J. Gallagher Risk Management Services, Inc. Bindable Quotations & Compensation Disclosure Schedule Client Name: Collier County Board of County Commissioners WHOLESALER, MGA OR INTERMEDIARY COVERAGE(S) CARRIER NAME(S) EST ANNUAL PREMIUM 1 COMM. % OR FEE 2 NAME 3 COMM % / FEE $ 4 AJG OWNED? YES/NO Aircraft Hull and Liability Member Companies of Global Aerospace (see companies listed on page 19) $51,287 15% Global Aerospace * No Aviation General Liability Member Companies of Global Aerospace (see companies listed on page 19) $7,029 20% Global Aerospace * No Aircraft Hull and Liability Westchester Fire Insurance Company $47,330 17.5% Chubb 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. If the premium is shown as an indication: 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 verbal quotation was received from this carrier. We are awaiting a quotation in writing. 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.4.cPacket Pg. 2101Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty
Collier County Board of County Commissioners
25
Arthur J. Gallagher Risk Management Services, Inc.
Client Authorization to Bind Coverage
After careful consideration of Gallagher’s proposal dated July 31, 2018, we accept the following coverage(s).
Please check the desired coverage(s):
LINE OF COVERAGE CARRIER
Accept Reject
Aircraft Hull and Liability
Total Annual Premium: $51,287
Additional premium to increase
liability to $50,000,000: $3,276
Additional premium to add TRIA
Terrorism Coverage $1,040
Member Companies of Global
Aerospace
(see companies listed on page 19)
Accept Reject
Aviation General Liability
Total Annual Premium: $7,029
Additional premium to increase
liability to $10,000,000: $11,870
Additional premium to add TRIA
Terrorism Coverage $703
Member Companies of Global
Aerospace
(see companies listed on page 19)
Accept Reject
Aircraft Hull and Liability
Total Annual Premium: $47,330
Additional premium to add TRIA
Terrorism Coverage $1,405
Westchester Fire Insurance Company
Provide Quotations or Additional Information on the Following Coverage Considerations:
Yes No Property (Hangars and contents)
Yes No Workers’ Compensation
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.4.c
Packet Pg. 2102 Attachment: 18-19 Aviation Insurance Revised Renewal Proposal (6565 : Approval to Purchase Casualty Insurance for FY 19)
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Packet Pg. 2103 Attachment: IRMS Renewal Summary (6565 : Approval to Purchase Casualty Insurance for FY 19)
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Packet Pg. 2104 Attachment: IRMS Renewal Summary (6565 : Approval to Purchase Casualty Insurance for FY 19)