Agenda 09/12/2023 Item #16E 2 (Approve purchase of Aircraft and Airport Insurance for fiscal year 2024)09/12/2023
EXECUTIVE SUMMARY
Recommendation to approve the purchase of Aircraft and Airport Insurance for FY 2024 from the
Chubb/ACE Property & Casualty Insurance Company in the annual amount of $252,406.
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 Chubb/ACE Property & Casualty
Insurance Company and will expire on September 30, 2023. 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 continues to be challenging in 2023, though it does seem to be
moderating a bit. Claims frequency is down, but severity is up dramatically with the cost to repair damaged aircraft
increasing due to supply chain shortages and a continuing escalation in liability claim awards and settlements.
Furthermore, the fallout from the Ukraine / Russian aircraft “confiscation claims” that theoretically could be a $10
Billion aircraft hull claim are still not known and likely will not be known for a few years after the claims go
through the legal system. Lastly, in December of 2022 the insurance marketplace increased the claim reserve for
the Boeing 737 Max Claim by $1.5BN and insurers are trying to use that as the reason they believe that premium
rates will increase by 15-25% in 2023. Most of Gallagher’s aviation clients are currently seeing premium increases
ranging from 5 to 15%.
The County’s aviation insurance broker conducted an extensive marketing effort on the County’s behalf in 2022,
which ended up in significant cost savings by moving the Insurance Coverage to a new insurer. Since the aviation
insurance marketplace is small, combined with a few losses at the Collier County Airport, it is Gallagher’s
recommendation that this coverage not be marketed for the 2023 renewal.
Chubb/ACE Property & Casualty Insurance Company, the incumbent insurer, provided a renewal quotation that
represents a 7.5% premium increase which is in line with the overall marketplace. Furthermore, the insurer offered
an option to renew this coverage in 2024 for a maximum premium increase of 7.5% should the county have no
losses during the next policy term. The Chubb/ACE proposal also contained two new exclusions; however, the
County has minimal to no exposure to the type of loss excluded.
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 renews with Chubb/ACE Property & Casualty Insurance
Company. The FY 24 renewal is illustrated below:
Policy Type Limits Deductibles FY 23
Premium
FY 24
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 Insured
Value N911CK
$50,000- Rotors
Not in Motion;
$229,796 $247,031 $17,235 +7.5%
16.E.2
Packet Pg. 938
09/12/2023
$8,000,000 Insured
Value N911CB
5.0% of Insured
Value- Rotors in
Motion
Airport Liability $2,000,000 Each
Occurrence
None $5,000 $5,375 $375 +7.5%
Total $234,796 $252,406 $17,610 +7.5%
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, 2023.
FISCAL IMPACT: The estimated annual premium for Aircraft (N911CK), Aircraft (N911CB) and Airport
Liability Insurance is $252,406. Funds have been budgeted within Fund 5016, 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 the Executive
Summary effective October 1, 2023 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: Michael K. Quigley, RMPE, Division Director, Risk Management Division
ATTACHMENT(S)
1. Collier County Board - 2024 Aviation Insurance Renewal Proposal (PDF)
16.E.2
Packet Pg. 939
09/12/2023
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.2
Doc ID: 26317
Item Summary: Recommendation to approve the purchase of Aircraft and Airport Insurance for FY 2024 from
the Chubb/ACE Property & Casualty Insurance Company in the annual amount of $252,406.
Meeting Date: 09/12/2023
Prepared by:
Title: Manager, Risk Finance – Risk Management
Name: Greily Gonzalez
08/09/2023 10:38 AM
Submitted by:
Title: Risk Management Director – Risk Management
Name: Michael Quigley
08/09/2023 10:38 AM
Approved By:
Review:
Risk Management Michael Quigley Director Review Completed 08/09/2023 10:49 AM
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 08/09/2023 10:51 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 08/09/2023 10:52 AM
Office of Management and Budget Blanca Aquino Luque Additional Reviewer Completed 08/09/2023 3:04 PM
County Manager's Office Amy Patterson Level 4 County Manager Review Completed 09/05/2023 1:02 PM
Board of County Commissioners Geoffrey Willig Meeting Pending 09/12/2023 9:00 AM
16.E.2
Packet Pg. 940
ajg.com
2023 All rights reserved.
Proposal of Insurance
Collier County Board of
Commissioners
3311 East Tamiami Trail, Building D
Naples, FL 34112
Presented: July 27, 2023
Aircraft Hull and Liability
Airport Liability
Effective: October 1, 2023 – October 1, 2024
AEROSPACE PRACTICE
Scott Bolger, CPCU, ARM
Area Executive Vice President
Arthur J. Gallagher Risk Management Services, LLC
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.2.a
Packet Pg. 941 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 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 Finance Options ............................................................................................................ 13
Changes and Developments ......................................................................................................... 13
Coverage Considerations ............................................................................................................. 13
Major Changes to Expiring Program ........................................................................................... 13
Service Commitment ..................................................................................................................... 14
Proposal Disclosures .................................................................................................................... 15
Terms & Condisions ...................................................................................................................... 16
Marketing Review / Admitted Status ............................................................................................ 18
Compensation Disclosure ............................................................................................................ 19
Client Authorization to Bind Coverage ........................................................................................ 20
Gallagher Step Loss Control Portal ............................................................................................. 22
ERiskHub® Overview and Login Information ............................................................................. 24
16.E.2.a
Packet Pg. 942 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 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, LLC
Aerospace Practice
Phone Number: (847) 586-0800
16.E.2.a
Packet Pg. 943 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 All rights reserved.
4
Claims Reporting By Policy
Line of Coverage Carrier Policy # Address When to Report
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:
Gallagher Aerospace
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.2.a
Packet Pg. 944 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 All rights reserved.
5
Aircraft Hull & Liability Coverage Summary
CARRIER: Westchester Fire Insurance Company
POLICY TERM:
October 1, 2023 – October 1, 2024 both dates at 12:01 a.m. local time at first named
insured’s address.
NAMED INSURED:
Collier County Board of County Commissioners and its boards, commissions, or agencies and
their elective officers or members thereof
MAILING ADDRESS:
3311 East Tamiami Trail, Building D
Naples, FL 34112
SCHEDULE OF AIRCRAFT:
1. 1999 Eurocopter EC135T1
FAA Registration No. N911CK
5 Passenger Seats, 1 Crew
$1,592,000 Insured Value
2. 2019 Eurocopter H135 T3H
FAA Registration No. N911CB
3 Passenger Seats, 1 Crew
$8,000,000 Insured Value
16.E.2.a
Packet Pg. 945 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 All rights reserved.
6
Aircraft Hull & Liability Coverage Summary
Physical Damage
Ground & Flight Hull Physical Damage:
• Agreed Value Per Schedule of Aircraft
• War & Confiscation Perils Per Schedule of Aircraft
• Hull Deductible: $50,000 Not in Motion
5% In Motion
Spare Engines/Parts Physical Damage:
• Each Occurrence: $300,000
Aircraft Extra Expense:
• Each Day $1,000
• Each Loss $150,000
• Maximum Period of Indemnity 60 Days
• Deductible Nil
Spare Parts Extra Expense:
• Each Occurrence $100,000
• Maximum Period of Indemnity 60 Days
• Deductible Nil
Trip Interruption Expense:
• Each Loss $Not Insured each Passenger
16.E.2.a
Packet Pg. 946 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 All rights reserved.
7
Aircraft Hull & Liability Coverage Summary
Liability
• Aircraft Liability: $30,000,000 Combined liability coverage for
Property Damage and Bodily Injury, including
Passenger Bodily Injury Each Occurrence
• Aircraft War Liability: $30,000,000 Combined liability coverage for
Property Damage and Bodily Injury, including
Passenger Bodily Injury Each Occurrence.
• Personal Injury: $25,000,000 Each Occurrence and Aggregate.
(Part of and not in addition to combined liability
coverage)
• Non-owned Aircraft Liability: Included at Aircraft Liability Limit. 40 seats
maximum (including crew) not to exceed 30
consecutive days usage. No Maximum Seating.
Pilot requirements do not apply. Airworthiness
Certificate requirement does not apply.
• Airport Premises Liability: $30,000,000 Each Occurrence
• Liability Assumed by the
Named Insured: $30,000,000 Each Occurrence provided that the
Named Insured submits a copy of all agreements to
the insurance carrier within a reasonable time after
coming to the attention of the Named Insured’s
Risk Management Department and the insurer
does not decline such contract.
• Products Liability: Arising from Incidental Operations or Sale of
Aircraft or parts $30,000,000 Each Occurrence.
Coverage applies to aircraft that have been
previously leased/financed by the insured and then
sold to a third party.
• Non-owned Hull Physical
Damage Liability: $Not Insured Each Occurrence
• Personal Effects Liability: $50,000 Each Person and Each Occurrence
16.E.2.a
Packet Pg. 947 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 All rights reserved.
8
Aircraft Hull & Liability Coverage Summary
• Fellow Employee Exclusion: Deleted
• Physical Damage to
Non-Owned Hangars Liability: $Not Insured Each Occurrence
• Cargo Liability $Not Insured Each Occurrence, Nil deductible
• Emergency Expenses: $1,000,000 Search & Rescue, Each Occurrence,
$1,000,000 Foaming and Fire Rescue, Each
Occurrence, Wreck removal and/or transportation
costs following off airport emergency landing.
• Voluntary Settlement:
Owned Aircraft
• Each Passenger/Crew Seat: $500,000
• Each Loss: See Scheduled Aircraft Seating Capacity
Non-Owned Aircraft
• Each Passenger/Crew: $Not Insured
• Each Loss: $Not Insured
• Host Liquor Liability: Included at Aircraft Liability Limit
• Medical Expense: $25,000 Each Person
• Aircraft Usage: All Operations of the Named Insured.
• Approved Pilots: Any pilot approved by the Named Insured’ Chief
Pilot or by his or her designee.
• Territory: Worldwide
• Aircraft Lay-up Credit: Not Provided
16.E.2.a
Packet Pg. 948 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 All rights reserved.
9
Aircraft Hull & Liability Coverage Summary
• Cancellation/Non-Renewal: 90 Days, except 10 Days for non-payment
of premium and 7 days for certain war
related perils.
• Certificates of Insurance: To Whom it May Concern
DD2400
Major Exclusions:
• War Risks Perils Exclusion (See Write-Back endorsement)
• Nuclear Exclusion
• Asbestos Exclusion
• Workers Compensation / Employers Liability
• Wear & Tear / Deterioration
• TRIA Liability
• Addition of Exclusion for the Disclosure of Personal Information Form AAP316
• Addition of Exclusion for PFAS/PFOS Chemicals Form AAP317
16.E.2.a
Packet Pg. 949 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 All rights reserved.
10
Airport Liability Coverage Summary
CARRIER: ACE Property & Casualty Insurance Company
EFFECTIVE DATES:
October 1, 2023 to October 1, 2024 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: $10,000
Hangarkeepers Liability: $10,000
16.E.2.a
Packet Pg. 950 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 All rights reserved.
11
Airport Liability Coverage Summary
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.
MAJOR EXCLUSIONS:
• War Risks Perils Exclusion
• Nuclear Exclusion
• Asbestos Exclusion
• Workers Compensation / Employers Liability
• Data Event Liability Exclusion
• Addition of Exclusion for the Disclosure of Personal Information Form AAP316
• Addition of Exclusion for PFAS/PFOS Chemicals
16.E.2.a
Packet Pg. 951 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 All rights reserved.
12
Premium Summary
Chubb / ACE Chubb / ACE
AIRCRAFT / COVERAGE Expiring Premium Renewal Premium
Airbus H135T3, Registration N911CB
$8,000,000 Hull Value $164,160 $176,472
$30,000,000 Liability Limit
Airbus EC135T1, Registration N911CK $65,636 $70,559
$1,592,000 Hull Value
$30,000,000 Liability Limit
Airport Liability Insurance
$2,000,000 Each Occurrence / Annual
Aggregate $5,000 $5,375
TOTAL ANNUAL PREMIUM $234,796* $252,406*
+7.5%
*Plus Applicable Florida State Taxes
ACE has provided a 2 year Policy term with a 7.5% premium rate increase cap for the second year of the policy provided there are no
losses during the policy term.
Gallagher is responsible for the placement of the following lines of coverage:
• Aircraft Hull and 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 Gallaher representative.
16.E.2.a
Packet Pg. 952 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 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.
• Diminution of Value Coverage
• Excess Aircraft Liability
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: Addition of Exclusions for PFOS/PFAS Chemicals and Disclosure of
Personal Information
16.E.2.a
Packet Pg. 953 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 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.2.a
Packet Pg. 954 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 All rights reserved.
15
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.2.a
Packet Pg. 955 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 All rights reserved.
16
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.2.a
Packet Pg. 956 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 All rights reserved.
17
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.2.a
Packet Pg. 957 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 All rights reserved.
18
Market Review and Admitted Status
We approached the following carriers in an effort to provide the most comprehensive and cost effective insurance program.
Line of
Coverage
Insurance Company ** (AM Best
Rate/Financial Strength)
Market Response
*
Admitted
***
Aircraft Hull and
Liability
Westchester Fire Insurance Company
(A++,XV)
Quoted Admitted
Airport Liability ACE Property & Casualty Insurance
Company (A++,XV)
Quoted Admitted
*If shown as an indication, the actual premium and acceptance of the coverage requested will be determined by the market after a thorough
review of the completed application.
**Gallagher companies use AM 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 AM Best and do not constitute, either expressly or impliedly, an
endorsement of Gallagher’s service or its recommendations. AM 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 AM 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 AM Best website at http://www.ambest.com/ratings/.
***If coverage placed with a non-admitted carier, 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.2.a
Packet Pg. 958 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 All rights reserved.
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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
%
Airport Liability ACE Property & Casualty Insurance
Company ACE Aerospace $5,375 15% N/A
Aircraft Hull & Liability Westchester Fire Insurance Company ACE Aerospace $247,031 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.2.a
Packet Pg. 959 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to
Collier County Board of Commissioners
2023 All rights reserved.
20
Client Authorization to Bind Coverage
After careful consideration of Gallagher’s proposal dated July 27, 2023, we accept the following coverage(s). Please check the
desired coverage(s):
COVERAGE/CARRIER
☐ Accept ☐ Reject Airport Liability Insurance, ACE Property & Casualty Insurance Company, $2MM Liability Limit;
$5,375 Annual Premium plus applicable Florida State Taxes
☐ Accept ☐ Reject Aircraft Hull & Liability Insurance, Westchester Fire Insurance Company; $247,031 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
Diminution of Value Coverage
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:
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.
16.E.2.a
Packet Pg. 960 Attachment: Collier County Board - 2024 Aviation Insurance Renewal Proposal (26317 : Approval to Purchase Aircraft & Airport Insurance for
Collier County Board of Commissioners
2023 All rights reserved.
21
Client Authorization to Bind Coverage
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
16.E.2.a
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