Agenda 09/13/2022 Item #16E13 (Aircraft & Airport Insurance for FY23)09/13/2022
EXECUTIVE SUMMARY
Recommendation to approve the purchase of Aircraft and Airport Insurance for FY 2023 from the
Chubb/ ACE property & Casualty Insurance Company in the annual amount of $234,796.
OBJECTIVE: To protect the County against financial loss arising from Aircraft and Airport related
claims and to comply with Federal Aviation Administration requirements as well as other contractual
requirements.
CONSIDERATIONS: Collier County operates three airports that include Marco Island Airport,
Immokalee Airport and Everglades Airpark. The County EMS Division operates Med Flight helicopter
(N911CK) and Med Flight helicopter (N911CB) for the purpose of emergency medical transport pursuant
to FAA Part 135 Regulations. The County is required to carry Airport Liability insurance on its airports
and hangar facilities to comply with various contractual requirements. It is also required to carry Aircraft
Liability insurance in order to receive landing permission at various hospital/medical facilities. Further,
the County purchases Aircraft Hull insurance to protect against damage to aircraft. Currently, these
policies are underwritten by Global Aerospace and will expire on September 30, 2022. In anticipation of
the policy expiration, renewal proposals were sought through the County’s aviation insurance broker,
Arthur J. Gallagher Aviation.
The worldwide aviation insurance market has tightened significantly over the past 60 months. The
number of carriers writing aviation coverage has contracted significantly due to severe losses, COVID
concerns, and the Russian/Ukrainian War. Rates are increasing as much as 30% in many sectors of the
business. According to the broker, public entity EMS Helicopter insurance is particularly difficult to
place.
The County’s aviation insurance broker approached seven carriers and received proposals from five
carriers. The five carriers were Chubb/ACE Property & Casualty Insurance Company, Member
Companies of USAIG, Starr and Liability Company, Falls Lake Insurance Company, and Member
Companies of Global Aerospace, the incumbent.
Global Aerospace group, the incumbent, advised they can no longer offer a 100% quotation. Instead, they
proposed a Quota Share Policy offering to cover 35% of the risk. The broker structured multiple other
insurers to cover the remaining 65% of the risk resulting on a composite premium increase of 37.7%
compared to the current policy.
Chubb/ACE Property & Casualty Insurance Company provided a 100% quotation. The quoted premium
represents an 11.5% increase from the current policy but was $54,954 lower than the Global
Aerospace/USAIG/Starr/Falls Lake quote. The Chubb/ACE proposal contained some reductions in
ancillary coverages; however, the County has minimal to no exposure to the type of loss for which thes e
coverages afford protection.
A full Proposal of Insurance is attached as part of this Item. Given these considerations, the Broker and
the Risk Management Director recommends that the County renew with Chubb/ACE Property & Casualty
Insurance Company. The FY 23 renewal is illustrated below:
Policy Type Limits Deductibles FY 22
Premium
FY 23
Premium
Dollar
Change
Percent
Change
Aircraft Liability $30,000,000 Each
Occurrence
None Incl. with
Hull
Incl. with Hull NA NA
Aircraft Hull $1,592,000 $50,000- $197,901 $229,796 $31,895 +16.1%
16.E.13
Packet Pg. 2926
09/13/2022
Insured Value
N911CK
$8,000,000
Insured Value
N911CB
Rotors Not in
Motion; 5.0%
of Insured
Value- Rotors
in Motion
Airport Liability $2,000,000 Each
Occurrence
None $12,536 $5,000 ($7,536) -39.8%
Total $210,437 $234,796 $24,359 +11.5%
The Chubb/ACE Property & Casualty Insurance Company carries a Best’s financial rating of “A,
Superior” or greater. The commencement date of coverage is October 1, 2022.
FISCAL IMPACT: The estimated annual premium for Aircraft (N911CK), Aircraft (N911CB) and
Airport Liability Insurance is $234,796. Sufficient funds have been budgeted within Fund 516, Property
Casualty Insurance to purchase coverage.
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 the purchase of Aircraft and Airport Insurance as outlined in t he
Executive Summary effective October 1, 2022 and authorize the County Manager or designee to complete
the applications or other documents necessary to bind coverage through the aviation insurance broker,
Arthur J. Gallagher Aviation.
Prepared by: Jeffrey A. Walker, CPCU, ARM, Division Director, Risk Management Division
ATTACHMENT(S)
1. Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (PDF)
16.E.13
Packet Pg. 2927
09/13/2022
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.13
Doc ID: 23082
Item Summary: Recommendation to approve the purchase of Aircraft and Airport Insurance for
FY 2023 from the Chubb/ ACE Property & Casualty Insurance Company in the annual amount of
$234,796.
Meeting Date: 09/13/2022
Prepared by:
Title: Operations Coordinator – Risk Management
Name: Greily Gonzalez
08/12/2022 12:55 PM
Submitted by:
Title: Division Director - Risk Management – Risk Management
Name: Jeff Walker
08/12/2022 12:55 PM
Approved By:
Review:
Risk Management Jeff Walker Director Review Completed 08/15/2022 8:28 AM
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 08/15/2022 8:37 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 08/15/2022 9:32 AM
Office of Management and Budget Susan Usher Additional Reviewer Completed 08/22/2022 1:33 PM
County Manager's Office Dan Rodriguez Level 4 County Manager Review Completed 09/06/2022 9:59 AM
Board of County Commissioners Geoffrey Willig Meeting Pending 09/13/2022 9:00 AM
16.E.13
Packet Pg. 2928
ajg.com
2022 Arthur J. Gallagher & Co. All rights reserved.
Proposal of Insurance
Collier County Board of
Commissioners
3311 East Tamiami Trail, Building D
Naples, FL 34112
Presented: August 11, 2022
Aircraft Hull and Liability
Airport Liability
Effective: October 1, 2022 – October 1, 2023
AEROSPACE PRACTICE
Scott Bolger, CPCU, ARM
Area Executive Vice President
Arthur J. Gallagher Risk Management Services, Inc.
2580 Foxfield Road, Suite 203
St. Charles, IL 60174
847-586-0802
Scott_Bolger@ajg.com
www.ajg.com
CA Agency License #0D69293
16.E.13.a
Packet Pg. 2929 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082 : Approval to Purchase Aircraft &
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
2
Table of Contents
Client Service Team ...................................................................................................................... 3
Claims Reporting by Policy .......................................................................................................... 4
Aircraft Hull and Liability Coverage Summary............................................................................ 5
Airport Liability Coverage Summary ........................................................................................... 10
Premium Summary ........................................................................................................................ 12
Premium Detail .............................................................................................................................. 12
Premium Finance Options ............................................................................................................ 13
Changes and Developments ......................................................................................................... 13
Coverage Considerations ............................................................................................................. 13
Major Changes to Expiring Program ........................................................................................... 13
Service Commitment ..................................................................................................................... 14
Marketing Review .......................................................................................................................... 15
Proposal Disclosures .................................................................................................................... 16
Terms & Conditions ...................................................................................................................... 17
Carrier Ratings and Admitted Status ........................................................................................... 19
Compensation Disclosure ............................................................................................................ 20
Client Authorization to Bind Coverage ........................................................................................ 21
CORE360™ Loss Control Portal .................................................................................................. 23
ERiskHub® Overview and Login Information ............................................................................. 24
16.E.13.a
Packet Pg. 2930 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082 : Approval to Purchase Aircraft &
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
3
Service Team
We operate using a team approach. Your Service Team consists of:
NAME / TITLE PHONE / ALT. PHONE EMAIL
Scott Bolger, CPCU, ARM
Area Executive Vice President
Aerospace Practice
847-586-0802 (p)
847-902-8108 (c)
847-586-0810 (f)
Scott_Bolger@ajg.com
Jennifer Cummins
Client Service Manager - Aerospace
630-549-3629 (p)
866-212-1654 (f)
Jennifer_Cummins@ajg.com
Arthur J. Gallagher Risk Management Services, Inc.
Aerospace Practice
Phone Number: (847) 586-0800
16.E.13.a
Packet Pg. 2931 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082 : Approval to Purchase Aircraft &
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
4
Claims Reporting By Policy
Line of Coverage Carrier Policy # Address When to Report
Aircraft Hull &
Liability and Airport
Liability
Member
Companies of
Global
Aerospace
TBD
c/o Global Aerospace
125 S. Wacker Drive
30th Floor, Suite 3005
Chicago, IL 60606
Immediately
Airport General
Liability Insurance
ACE Property
and Casualty
Insurance
Company
TBD
1100 Poydras Steet
Suite 2150
New Orleans, LA 70163
Immediately
Aircraft Hull &
Liability Insurance
Westchester
Firs Insurance
Co
TBD
1100 Poydras Steet
Suite 2150
New Orleans, LA 70163
Immediately
Immediately report all claims. Each insurer requires notice of certain types of claims depending on the potential
exposure or particular injury types. It is important to thoroughly review your policy to ensure you are reporting
particular incidents and claims, based upon the insurer’s policy requirements.
If you are using a third party administrator (“TPA”), your TPA may or may not report claims to an insurer on your
behalf. Although we will assist you where requested, it is important that you understand whether your TPA will be
completing this notification.
Report All Claims to:
Arthur J Gallagher & Co.
2580 Foxfield Road, Suite 203, St. Charles, IL 60174
Contact: Scott Bolger
Direct Phone: 847-586-0802
Main Phone 847-586-0800
Fax: 847-586-0810
Email: Scott_Bolger@ajg.com
16.E.13.a
Packet Pg. 2932 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082 : Approval to Purchase Aircraft &
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
5
Aircraft Hull & Liability Coverage Summary
CARRIER: Option 1: Member Companies of Global Aerospace (35% lead share), Starr Indemnity and
Liability Company (35% following share), Falls Lake Insurance Company (10%
following share) and USAIG (20% Following Share)
Option 2: Westchester Fire Insurance Company
EFFECTIVE DATES:
October 1, 2022 to October 1, 2023 both dates at 12:01 a.m. local time at first named insured’s
address.
NAMED INSURED:
Collier County Board of County Commissioners your boards, commissions, or agencies and their elective
officers or members thereof.
NOTE: Any entity not named as an insured in this proposal may not be an insured
entity. This may include affiliates, subsidiaries, LLC’s, partnerships and Joint Ventures.
SCHEDULE OF AIRCRAFT:
1. 2019 Eurocopter H135 T3H
FAA Registration No. N911CB
3 Passenger Seats, 1 Crew
$8,000,000 Insured Value
2. 1999 Eurocopter EC135 T1
FAA Registration No. N911CK
5 Passenger Seats, 1 Crew
$1,592,000 Insured Value
16.E.13.a
Packet Pg. 2933 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082 : Approval to Purchase Aircraft &
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
6
Aircraft Hull & Liability Coverage Summary
Current Global Aerospace / Starr / USAIG / Falls Lake Westchester Fire
Coverage Summary With Global Aerospace Option 1 Option 2
Ground & Flight Hull Physical Damage:Included Included
All Risks per Agreed Value Schedule
War & Confiscation Perils: Incuded
Deductible: 2.5% in Motion 5.0%5.0%
$1,000 Not In Motion $18,500 $50,000
Aircraft Liability Limit:Included Included
$30,000,000 Each Occurrence Combined Single Liability for
Bodily Injury and Property Damage
War Risks Liability Limit:Included Included
$30,000,000 Each Occurrence / Annual Aggregate
Personal Injury Liability:Included Included
$25,000,000 Each Offense / Annual Aggregate $30,000,000
Non-Owned Aircraft Liability Limit:Included Included
$30,000,000 Each occurrence
40 Seat Maximum Aircraft Size (including crew) and not to
exceed 30 consecutive days of use. Pilot Requirements do not
apply. Coverage applies to any Category Aircraft.
Airport Premises Liability Limit:Included Included
$30,000,000 Each Occurrence
Products Liability Limit:Included Included
Arising from the incidental sale of aircraft or aircraft parts.
$30,000,000 Each Occurrence
Non-Owned Aircraft Hull Physical Damage:Included Not Provided
$5,500,000 Each Occurrence.
16.E.13.a
Packet Pg. 2934 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
7
Aircraft Hull & Liability Coverage Summary
Current Global Aerospace / Starr / USAIG / Falls Lake Westchester Fire
Coverage Summary With Global Aerospace Option 1 Option 2
Personal Effects and Baggage Liability Included Included
$50,000 Each Person / Each Occurrence
Physical Damage to Non-Owned Hangars and Contents:Included Not Provided
$4,000,000 Each Occurrence
Cargo Liability:Included Not Provided
$1,000,000 Each Occurrence
Ground Hangarkeepers Liability:Included Not Provided
$10,000,000 Each Occurrence
Spare Engines and Parts Physical Damage:Included Included
$2,000,000 Each Occurrence $300,000
$Nil Deductible $500
Aircraft Extra Expense:Included Included
Per Day: Not Applicable $1,000
Per Occurrence: $900,000 $150,000
Maximum Period of Indemnity: 60 Days
Deductible: NIL Days
Spare Parts Extra Expense:Included Included
$200,000 Each Occurrence $100,000
Deductible: NIL
Trip Interruption Expense:Included Not Provided
$10,000 Each Passenger / Each Occurrence
Emergency Expenses:Included Included
$1,000,000 Search & Rescue each occurrence
$1,000,000 Foaming and Fire Rescue each occurrence
16.E.13.a
Packet Pg. 2935 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
8
Aircraft Hull & Liability Coverage Summary
Current Global Aerospace / Starr / USAIG / Falls Lake Westchester Fire
Coverage Summary With Global Aerospace Option 1 Option 2
Voluntary Settlements:Included Included
Owned Aircraft:$500,000
$1,000,000 Each Passenger, per seating schedule of aircraft
$1,000,000 Each Crew, per seating schedule of aircraft $500,000
Non-Owned Aircraft:Not Provided
$1,000,000 Each Passenger Not Provided
$1,000,000 Each Crew $500,000 Not Provided
$6,000,000 Each Occurrence
Medical Expenses:Included Included
$25,000 Each Person
Aircraft Usage:Included Included
All Operations of the Named Insured
Approved Pilots:Included Included
The policy shall not apply while a scheduled aircraft is in flight
unless operated by an appropriately rated pilot approved by the
Chief Pilot of the Named Insured or their designee.
Mechanics Tools:Included Not Provided
$180,000 Each Occurrence $500
$1,000 Deductible
Territory:Included Included
Worldwide
Aircraft Lay-up Credit Included Not Provided
50% of the pro-rated premium subject to a 30 consecutive day
minimum
Automatic Increase in Hull Value:Included Not Provided
Actual cost of upgrade subject to reporting of new value within 30
days. $20,000,000 Maximum
16.E.13.a
Packet Pg. 2936 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
9
Aircraft Hull & Liability Coverage Summary
MAJOR EXCLUSIONS:
War Risks Perils Exclusion
Nuclear Exclusion
Asbestos Exclusion
Workers Compensation / Employers Liability
Wear & Tear / Deterioration
Data Event Liability Exclusion
Current Global Aerospace / Starr / USAIG / Falls Lake Westchester Fire
Coverage Summary With Global Aerospace Option 1 Option 2
Newly Acquired Aircraft:
Actual Purchase Price of aircraft up to a maximum of
$20,000,000 per aircraft and subject to a 30 day reporting
clause
Included Not Provided
Cancellation / Non-Renewal:Included Included
90 Days, except 10 days for non-payment of premium and other
shorter periods for War Risks Coverages as outlined in the
applicable War Risks Write Back Endorsement(s).
16.E.13.a
Packet Pg. 2937 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
10
Airport Liability Coverage Summary
CARRIER: Option 1: Member Companies of Global Aerospace
Option 2: ACE Property & Casualty Insurance Company
EFFECTIVE DATES:
October 1, 2022 to October 1, 2023 both dates at 12:01 a.m. local time at first named insured’s
address.
NAMED INSURED:
Collier County Board of County Commissioners your boards, commissions, or agencies and their elective
officers or members thereof.
NOTE: Any entity not named as an insured in this proposal may not be an insured
entity. This may include affiliates, subsidiaries, LLC’s, partnerships and Joint Ventures.
INSURED PREMISES:
Immokalee Regional Airport
Marco Island Executive Airport
Everglades Airpark
and any locations necessary and incidental to the operations of the named insured.
LIMITS OF LIABILITY:
Each occurrence $ 2,000,000
General aggregate N/A
Products/completed operations aggregate $ 2,000,000
Personal and advertising injury aggregate $ 2,000,000
Third Party War Risks Liability – occurrence and aggregate $ 2,000,000
Fire damage – any one fire $ 100,000
Premises Medical – each person $ 5,000
Hangarkeeper’s – any one aircraft $ 2,000,000
Hangarkeeper’s – any one occurrence $ 2,000,000
DEDUCTIBLES:
Property Damage to Aircraft: $NIL
Hangarkeepers Liability: $NIL
SCHEDULE OF ADDITIONAL INSUREDS:
Shell Aviation, dba Shell Oil Products Company, LLC and Titan Aviation Fuels
Commercial Leasing Corporation
The Hiller Group, Inc.
NetJets, Inc.
16.E.13.a
Packet Pg. 2938 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082 : Approval to Purchase Aircraft &
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
11
Airport Liability Coverage Summary
MAJOR EXCLUSIONS:
• War Risks Perils Exclusion
• Nuclear Exclusion
• Asbestos Exclusion
• Workers Compensation / Employers Liability
• Data Event Liability Exclusion
16.E.13.a
Packet Pg. 2939 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082 : Approval to Purchase Aircraft &
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
12
Premium Summary
Global Aerospace/
Global Aerospace USAIG / Starr Chubb / ACE
AIRCRAFT / COVERAGE Expiring Premium Renewal Premium Renewal Premium
Option 1 Option 2
Airbus H135T3, Registration N911CB
$8,000,000 Hull Value $107,328 $173,052 $164,160
$30,000,000 Liability Limit
Airbus EC135T1, Registration N911CK $90,573 $101,755 $65,636
$1,592,000 Hull Value
$30,000,000 Liability Limit
Airport Liability Insurance
$2,000,000 Each Occurrence / Annual
Aggregate $12,536 $14,943 $5,000
TOTAL ANNUAL PREMIUM $210,437 $289,750* $234,796*
+37.7% +11.5%
*Plus Applicable Florida State Taxes
Gallagher is responsible for the placement of the following lines of coverage:
• Aircraft Hull & Liability
• Airport 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 Gallagher representative
Option #1 Premium Detail Per Aircraft By Insurer
Aircraft Global
Aerospace
Starr USAIG Falls Lake TOTAL
Airbus N911CB $41,993 $58,023 $49,040 $23,996 $173,052
Airbus N911CK $35,293 $35,293 $21,084 $10,084 $101,755
$274,807
16.E.13.a
Packet Pg. 2940 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082 : Approval to Purchase Aircraft &
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
13
Premium Finance Options
Premiums for the policies are due and payable as billed and may be financed financed, subject to acceptance by
an approved finance company. Note: Following acceptance, completion (and signature) of a premium finance
agreement with the specified down payment is required. Note; Unless prohibitted by law, Gallagher may earn
compensation for this optional value-added service
Outside Financing Quote: Available on Request
Payment Plan Schedule: None
Changes & Developments
It is important that we be advised of any further 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(s).
2. Any newly assumed contractual liability, granting of indemnities, or hold harmless agreements.
3. Circumstances which may require increased liability insurance limits.
Coverage Considerations
Gallagher recommends that you consider purchasing the following additional coverages for which you have
exposure. A Proposal for any of the coverages below can be provided.
• Cyber Liability
• Employment Practices Liability
• Crime
Please note the recommendations and considerations summarized in this section are not intended to identify
all potential exposures. Gallagher is not an expert in all aspects of your business and assumes no
responsibility to independently investigate the risks your business faces. Gallagher has relied upon the
information you provided in making our insurance Proposals. If you are interested in pursuing additional
coverages other than those listed above, please list the additional coverages in the Client Authorization to
Bind.
Major Changes to Expiring Program
Coverage: Per Coverage Summary
Premium: Per Premium Summary
Exclusions: Per Policy
16.E.13.a
Packet Pg. 2941 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082 : Approval to Purchase Aircraft &
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
14
Service Commitment
Account Service
At Arthur J. Gallagher & Co., our goal is to provide you with an exceptional insurance and risk management program delivered
by a world class service organization. Gallagher is committed to partnering with our clients to ensure we consistently deliver the
highest quality service possible.
Renewals
We use a standard Renewal Timeline and start early to make sure your needs are met and we are able to offer you the most
comprehensive and competitively priced insurance program. At each renewal, we will meet with you to establish a renewal
game plan, determine how many markets should be approached, discuss pricing in the insurance marketplace, and identify what
specific needs must be addressed. We will then approach markets that we feel will offer the best alternatives. These alternatives
will be presented at renewal as an option, even if we feel the incumbent program is strongest. We will demonstrate how we have
created competition within the marketplace to ensure that you receive the best renewal terms.
We make ourselves accountable by working with you to develop a written service schedule that meets your needs. You can
track our service by referring to our written service commitment. Service becomes especially important as your type of
organization continues to change and prosper.
Phone Calls
Phone calls will be returned within one working day of receipt.
Certificates of Insurance
Certificates of Insurance will be issued within one working day of request.
Claims
Claims will be reported to the company within two working days of receipt, and acknowledgment of receipt will be sent to you.
We will follow up with the carrier within ten working days after receipt of a claim. Monthly claim reports will be provided if
requested.
16.E.13.a
Packet Pg. 2942 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082 : Approval to Purchase Aircraft &
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
15
Market Review
We approached the following carriers in an effort to provide the most comprehensive and cost effective insurance program.
INSURANCE COMPANY LINE OF COVERAGE RESPONSE
Member Companies of Global Aerospace Aircraft Hull and Liability /
Airport Liability
Quoted (See
Coverage / Premium
Summary)
Chubb / ACE Insurance Company Aircraft Hull and Liability /
Aircraft Liability
Quoted (See
Coverage / Premium
Summary)
Member Companies of USAIG Aircraft Hull and Liability Quoted (See
Coverage / Premium
Summary)
Starr Indemnity and Liability Company Aircraft Hull and Liability Quoted (See
Coverage / Premium
Summary)
Old Republic Insurance Company Aircraft Hull and Liability Declined – EMS
Operations
AIG Aerospace Aircraft Hull & Liability No Response
Falls Lake Insurance Company Aircraft Hull & Liability Quoted (See
Coverage / Premium
Summary)
16.E.13.a
Packet Pg. 2943 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082 : Approval to Purchase Aircraft &
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
16
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/or any executive summaries outline certain terms and conditions of the insurance proposed by the insurers,
based on the information provided by your company. The insurance policies themselves must be read to fully understand the terms, coverages,
exclusions, limitations and/or conditions of the actual policy contract of insurance. Policy forms will be made available upon request. We make
no warranties with respect to policy limits or coverage considerations of the carrier.
Compensation Disclosure
1. Gallagher Companies are primarily compensated from the usual and customary commissions, fees or, where permitted, a combination of
both, for 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 based on market conditions and the insurance product placed for the client.
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 that provide for additional compensation if certain
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, not on an individual policy basis. As a result, Gallagher may be considered to have
an incentive to place your insurance coverages with a particular insurance company. If you do not wish to have your commercial insurance
placement included in consideration for additional compensation, contact your producer or service team for an Opt-out form.
3. Gallagher Companies may receive investment income on fiduciary funds temporarily held by them, or from obtaining or generating premium
finance quotes, unless prohibited by law.
4. Gallagher Companies may also access or have an ownership interest in 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 some of which may earn and retain customary brokerage commission and fees for their work.
If you have specific questions about any 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 contact
Gallagher via e-mail at Compensation_Complaints@ajg.com or by regular mail at:
Chief Compliance Officer
Gallagher Global Brokerage
Arthur J. Gallagher & Co.
2850 Golf Rd.
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.
TRIPRA is set to expire on December 31, 2027. There is no certainty of extension, thus the coverage provided by your insurers may or may not
extend beyond December 31, 2027. 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.
16.E.13.a
Packet Pg. 2944 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082 : Approval to Purchase Aircraft &
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
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Terms & Conditions
Terms and Conditions
It is important that we clearly outline the nature of our mutual relationship. The following terms and conditions (these
“Terms”) govern your relationship with Gallagher unless you have separately entered into a written services
agreement with Gallagher relative to the policies and services outlined in this Proposal, in which case that services
agreement will govern and control with respect to any conflicts with these Terms. These Terms will become effective
upon your execution of the Client Authorization to Bind Coverage (the “CAB”) included in this Proposal and shall
survive for the duration of your relationship with Gallagher relative to the policies placed pursuant to the CAB or
otherwise at your request.
Services
Gallagher will represent and assist you in all discussions and transactions with insurance companies relating to the
lines of insurance coverage set forth in the CAB and any other lines of insurance coverage with which you request
Gallagher’s assistance. Gallagher will consult with you regarding any matters involving these or other coverages for
which you have engaged Gallagher. You have the sole discretion for approving any insurance policies placed, as
well as all other material decisions involving your risk management, risk transfer and/or loss prevention needs.
Although you are responsible for notifying applicable insurance companies directly in connection with any claims,
demands, suits, notices of potential claims or any other matters as required by the terms and conditions of your
policies, Gallagher will assist you in determining applicable claim reporting requirements.
Treatment of Information
Gallagher understands the need to protect the confidentiality and security of your confidential and sensitive
information and strives to comply with applicable data privacy and security laws. Your confidential and sensitive
information will be protected by Gallagher and only used to perform services for you; provided that Gallagher may
disclose and transfer your information to our affiliates, agents or vendors that have a need to know such information
in connection with the provision of such services (including insurance markets, as necessary, for marketing, quoting,
placing and/or servicing insurance coverages). We may also disclose such information as required by applicable
data protection laws or the order of any court or tribunal, subject to our providing you with prior notice as permitted
by law.
We will (i) implement appropriate administrative, physical and technical safeguards to protect personal information;
(ii) timely report security incidents involving personal information to affected parties and/or regulatory bodies; (iii)
create and maintain required policies and procedures; and (iv) comply with data subjects’ rights, as applicable. To
the extent applicable under associated data protection laws, you are a “business” or “controller” and Gallagher is a
“service provider” or “data processor.” You will ensure that any information provided to Gallagher has been provided
with any required notices and that you have obtained all required consents, if any and where required, or are
otherwise authorized to transfer all information to Gallagher and enable Gallagher to process the information for the
purposes described in this Proposal and as set forth in Gallaher’s Privacy Policy located at
https://www.ajg.com/privacy-policy/. Gallagher may update its Privacy Policy from time to time and any updates will
be posted to such site.
Dispute Resolution
Gallagher does not expect that it will ever have a formal dispute with any of its clients. However, in the event that
one should arise, we should each strive to achieve a fair, expedient and efficient resolution and we’d like to clearly
outline the resolution process.
16.E.13.a
Packet Pg. 2945 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082 : Approval to Purchase Aircraft &
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
18
Terms & Conditions
A. If the parties have a dispute regarding Gallagher’s services or the relationship governed by this Proposal
(“Dispute”), each party agrees to resolve that Dispute by mediation. If mediation fails to resolve the Dispute, you
and Gallagher agree to binding arbitration. Each party waives all rights to commence litigation in court to resolve
a Dispute, and specifically waives all rights to pursue relief by class action or mass action in court or through
arbitration. However, the parties do not waive the ability to seek a court order of injunction in aid of the mediation
and arbitration required by these Terms.
B. The party asserting a Dispute must provide a written notice (“Notice”) of the claim to the other party and to the
American Arbitration Association (“AAA”) in accordance with its Commercial Arbitration Rules and Mediation
Procedures. All Dispute resolutions will take place in Chicago, IL, unless you and Gallagher agree to another
location. The parties will equally divide all costs of the mediation and arbitration proceedings and will each pay
their own attorneys’ fees. All matters will be before a neutral, impartial and disinterested mediator or arbitrator(s)
that have at least 20 years’ experience in commercial and insurance coverage disputes.
C. Mediation will occur within sixty (60) days of filing the Notice with the AAA. Mediation results will be reduced to a
memorandum of understanding signed by you, Gallagher and the mediator. A Dispute that is not resolved in
mediation will commence to binding arbitration. For Disputes in excess of $500,000, either party may elect to
have the Dispute heard by a panel of three (3) arbitrators. The award of the arbitrator(s) must be accompanied
by a reasoned opinion prepared and signed by the arbitrator(s). Except as may be required by law, neither you,
Gallagher, nor a mediator or arbitrator may disclose the existence, content or results of any Dispute or its dispute
resolution proceeding without the prior written consent of both you and Gallagher.
Electronic Delivery
In lieu of receiving documents in paper format, you agree, to the fullest extent permitted by law, to accept electronic
delivery of any documents that Gallagher may be required to deliver to you (including, but not limited to, insurance
policies and endorsements, account statements and all other agreements, forms and communications) in connection
with services provided by Gallagher. Electronic delivery of a document to you may be made via electronic mail or by
other electronic means, including posting documents to a secure website.
Miscellaneous Terms
Gallagher is engaged to perform services as an independent contractor and not as your employee or agent, and
Gallagher will not be operating in a fiduciary capacity.
Where applicable, insurance coverage placements and other services may require the payment of federal excise
taxes, surplus lines taxes, stamping or other fees to the Internal Revenue Service, various State(s) departments of
revenue, state regulators, boards or associations. In such cases, you will be responsible for the payment of the taxes
and/or fees, which Gallagher will separately identify on related invoices.
The Proposal and these Terms are governed by the laws of the State of Illinois, without regard to its conflict of law
rules.
If an arbitrator/court of competent jurisdiction determines that any provision of these Terms is void or unenforceable,
that provision will be severed, and the arbitrator/court will replace it with a valid and enforceable provision that most
closely approximates the original intent, and the remainder of these Terms will remain in effect.
Except to the extent in conflict with a services agreement that you may enter into with Gallagher, these Terms and
the remainder of the Proposal constitute the entire agreement between you and Gallagher with respect to the
subject matter of the Proposal, and supersede all prior negotiations, agreements and understandings as to such
matters.
16.E.13.a
Packet Pg. 2946 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082 : Approval to Purchase Aircraft &
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
19
Carrier Ratings and Admitted Status
PROPOSED INSURANCE COMPANIES A.M. BEST'S RATING &
FINANCIAL SIZE CATEGORY * ADMITTED/NON-ADMITTED **
Member Companies of Global Aerospace:
American Alternative Insurance Company A+, XV Admitted
American Commerce Insurance Company A, XI Admitted
National Indemnity Company A++, XV Admitted
Tokio Marine America Insurance Company A++, XV Admitted
Westchester Fire Insurance Company A++, XV Admitted
ACE Property & Casualty Insurance Company A++, XV Admitted
Starr Indemnity and Liability Company A, XIV Admitted
Falls Lake Insurance Company A, XV Admitted
Member Companies of USAIG
Liberty Mutual Insurance Company A+, XV Admitted
*Gallagher companies use A.M. Best rated insurers and the rating listed above was verified on the date the proposal document
was created.
Best's Credit Ratings™ reproduced herein appear under license from A.M. Best and do not constitute, either expressly or
impliedly, an endorsement of Gallagher’s service or its recommendations. 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.
A Best’s Financial Strength Rating is an independent opinion of an insurer’s financial strength and ability to meet its ongoing
insurance policy and contract obligations. It is not a warranty of a company’s financial strength and ability to meet its obligations
to policyholders. Best's Credit Ratings™ are under continuous review and subject to change and/or affirmation. For the latest
Best’s Credit Ratings™ and Guide to Best’s Credit Ratings, visit the A.M. Best website at http://www.ambest.com/ratings.
**If coverage placed with a non-admitted carrier, it is doing business in the state as a surplus lines or non-admitted carrier, and
is neither subject to the same regulations as an admitted carrier nor do they participate in any state insurance guarantee fund.
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.13.a
Packet Pg. 2947 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082 : Approval to Purchase Aircraft &
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
20
Compensation Disclosure Schedule
COVERAGE(S) CARRIER NAME(S)
WHOLESALER,
MGA OR
INTERMEDIARY
NAME
1
EST ANNUAL
PREMIUM
2
COMM. %
OR FEE
3
GALLAGHER U.S.
owned
WHOLESALER,
MGA or
INTERMEDIARY
%
Aircraft Hull & Liability Member Companies of Global
Aerospace Global Aerospace, Inc. $77,286 15% N/A
Aircraft Hull & Liability Member Companies of USAIG USAIG $70,124 15% N/A
Aircraft Hull & Liability Starr Indemnity and Liability Company Starr Aviation $93,316 15% N/A
Aircraft Hull & Liability Falls Lake Insurance Company Air Centurian $34,080 15% N/A
Airport Liability Member Companies of Global
Aerospace Global Aerospace, Inc. $14,943 20% N/A
Aircraft Hull & Liability Falls Lake Insurance Company ACE Aerospace $229,796 15% N/A
Airport Liability ACE Property & Casualty Insurance
Company ACE Aerospace $5,000 15% N/A
1. We were able to obtain more advantageous terms and conditions for you through an intermediary/wholesaler.
2. 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.
3. 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.
.
16.E.13.a
Packet Pg. 2948 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
21
Client Authorization to Bind Coverage
After careful consideration of Gallagher’s proposal dated August 11, 2022, we accept the following coverage(s). Please check
the desired coverage(s):
COVERAGE/CARRIER
☐ Accept ☐ Reject
Aircraft Hull & Liability Insurance, $274,807 Annual Premium ($77,286 Global
Aerospace, $70,124 USAIG, $93,316 Starr Indemnity, and $34,080 Falls Lake
Insurance Co) plus applicable Florida State Taxes
☐ Accept ☐ Reject Airport Liability Insurance, Member Companies of Global Aerospace, $2MM
Liability Limit; $14,943 Annual Premium plus applicable Florida State Taxes
☐ Accept ☐ Reject
Airport Liability Insurance, ACE Property & Casualty Insurance Company,
$2MM Liability Limit; $5,000 Annual Premium plus applicable Florida State
Taxes
☐ Accept ☐ Reject Aircraft Hull & Liability Insurance, Westchester Fire Insurance Company;
$229,796 Annual Premium plus applicable Florida State Taxes
☐ Accept ☐ Reject
Provide Quotations or Additional Information on the Following Coverage Considerations
Gallagher recommends that you purchase the following additional coverages for which you
have exposure. By checking the box(es) below, you are requesting that Gallagher provide you
with a Proposal for this coverage. By not requesting a Proposal for this coverage, you assume
the risk of any uncovered loss
Cyber Liability
Employment Practices Liability
Crime
The above coverage(s) does not necessarily represent the entirety of available insurance products. If you are interested in
pursuing additional coverages other than those listed in the Additional Recommended Coverages, please list below:
Producer/ Insured Coverage Amendments and Notes:
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Packet Pg. 2949 Attachment: Collier County Board of Commissioners - 2022 Aviation Insurance Renewal Proposal (23082 : Approval to Purchase Aircraft &
Collier County Board of Commissioners
2022 Arthur J. Gallagher & Co. All rights reserved.
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Client Authorization to Bind Coverage
Other Services to Consider
By checking the box(es) below, you are requesting that Gallagher provide you with additional information for the following
services:
☐ Gallagher STEP
☐ eRiskHub
Exposures and Values
You confirm the payroll, values, schedules, and any other information pertaining to your operations, and submitted to the
underwriters, were compiled from information provided by you. If no updates were provided to Gallagher, the values, exposures
and operations used were based on the expiring policies. You acknowledge it is your responsibility to notify Gallagher of any
material change in your operations or exposures.
Additional Terms and Disclosures
Gallagher is not an expert in all aspects of your business. Gallagher’s Proposals for insurance are based upon the information
concerning your business that was provided to Gallagher by you. Gallagher expects the information you provide is true, correct
and complete in all material respects. Gallagher assumes no responsibility to independently investigate the risks that may be
facing your business, but rather have relied upon the information you provide to Gallagher in making our insurance Proposals.
Gallagher's liability to you arising from any of Gallagher’s acts or omissions will not exceed $20 million in the aggregate. The
parties each will only be liable for actual damages incurred by the other party, and will not be liable for any indirect, special,
exemplary, consequential, reliance or punitive damages. No claim or cause of action, regardless of form (tort, contract,
statutory, or otherwise), arising out of, relating to or in any way connected with the Proposal, any of Gallagher’s services or your
relationship with Gallagher may be brought by either party any later than two (2) years after the accrual of the claim or cause of
action.
Gallagher has established security controls to protect Client confidential information from unauthorized use or disclosure. For
additional information, please review Gallagher’s Privacy Policy located at https://www.ajg.com/privacy-policy/.
You have read, understand and agree that the information contained in the Proposal and all documents attached to and
incorporated into the Proposal, is correct and has been disclosed to you prior to authorizing Gallagher to bind coverage and/or
provide services to you. By signing below, or authorizing Gallagher to bind your insurance coverage through email when
allowed, you acknowledge you have reviewed and agree with terms, conditions and disclosures contained in the Proposal.
By: _______________________________________________________________________
Print Name (Specify Title)
_______________________________________________________________________
Company
_______________________________________________________________________
Signature
Date: _______________________________________________________________________
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