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Res No 180-17-14981RESOLUTION NO. 180-17-14981 A Resolution authorizing the City Manager to purchase Public Officials and Employment Practices Liability Insurances from ACE American Insurance Company (ACE) for Fiscal Year 2017-2018. WHEREAS, the insurance marketplace for Municipalities is extremely limited; and WHEREAS, the City, through its Agent of Record, Brown & Brown, has solicited three separate sources and requested independent insurance quotes for Public Officials and Employment Practices Liability Insurance from three sources; and WHEREAS, the only carrier who gave a quote was ACE American Insurance Company (ACE) and the City received a renewal quote for the Public Officials and Employment Practice Liability Insurance; and WHEREAS, the continuation of the existing coverages with ACE provides the best coverage options to meet the City's existing needs; and WHEREAS, the City Manager recommends that the City continue coverage with ACE for Public Officials and Employment Practices Liability Insurances coverage for 20.17/2018 Fiscal Year based upon the currerit renewal. . NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA THAT: Section 1. The City Manager is hereby authorized to execute the renewal insurance policy with ACE for Public Officials and Employment Practices Liability Insurances 201712018 Fiscal Year. Section 2. Severability. If any section clause, sentence, or phrase of this resolution is for any reason held invalid or unconstitutional by a court of competent jurisdiction, the holding shall not affect the validity of the remaining portions of this resolution. Section 3. Effective Date. This resolution shall become effective immediately upon adoption. PASSED AND ADOPTED this 5th day of September, 2017. APPROVED: M4~ COMMISSION VOTE: 5-0 Mayor Stoddard: Yea Vice Mayor Welsh: Yea Commissioner Harris: Yea Commissioner Edmond: Yea Commissioner Liebman: Yea THE CITY OF PLEASANT LIVING To: FROM: DATE: SUBJECT: Ba~kground: CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM The Honorable Mayor & Members of the City Commission Steven Alexander, City Manager Agenda Item No.:L September 5, 2017 A Resolution authorizing the City Manager to purchase Public Officials and Employment Practices Liability Insurances from ACE American Insurance -Company (ACE) for Fiscal Year 2017-2018. The City, through its agent of record, Brown & Brown, solicited and requested independent quotes from current carrier ACE and PGIT which covers all qther City's liability lines of coverages. PGIT declined to quote for Public Officials and Employment Practices Liability. Florida League of Cities has not responded to our request for quote. The total premium renewal quote for ACE is $46,725. There are only three carriers on this type of insurance for municipalities in our market area. Recommended Action: The City Manager recommends that the City renew its policy with ACE for the Public Officials and Employment Practices Liability policy for a premium of $46,725. Attachments: Proposed Resolution Proposal from Brown & Brown INSURANCE PROPOSAL SUBMITTED ESPECIALLY FOR: CITY OF SOUTH MIAMI POLICY TERM: . 10/01/17 TO 10/01/18 DATE OF PRESENTATION: 08/22/2017 PRESENTED By: ROBERT HOLLANDER EXECUTIVE VICE PRESIDENT BROWN & BROWN -MIAMI DIVISION 1 INTRODUCTION We would like to take the opportunity to thank you for allowing us to work closely with you in our effort to develop a comprehensive Risk Solution Program for your business. Brown & Brown, Inc. is the largest independent agency organization in Florida and the 6th largest in the " US. The company provides a variety of insurance products and services to corporate, institutional, professional and individual clients. Headquartered in Daytona Beach and Tampa, Brown & Brown is publicly traded on the New York Stock Exchange (BRO) and has been included in Forbes' list of the "200 Best Small Companies in America". The company handles clients' premiums in excess of 12 Billion annually and has in excess of 6,500 employees. We have insurance professionals who specialize in evaluating and protecting your personal assets -home, auto, watercraft and life. We also have an experienced employee benefits department who can assist you with group health, disability, life and dental. While size is not the sole criteria for choosing all insurance agent, it does enable us to offer our clients clout in the marketplace and unmatched service capabilities. Please feel free to visit our website at www.bbinsurance.com This insurance proposal is prepared based on data furnished by you for our review. It is not to be construed as an exact or complete analysis of the policies or as legal evidence of insurance. It is only a brief outline of your insurance coverage and is for information purposes only. In the event of difference, the provisions of the policy will prevail. Please read your policy carefully for a thorough understanding of all terms, conditions a~d exclusions. 2 ACCOUNT SERVICING TEAM Robert Hollander Executive Vice President 305-364-7818 rhollander@bbmia.com Nancye Batista, AAI Acco,unt Manager 305-364-7816 nbatista@bbmia.com Alexandra Sarria Claims Representative 305-364-7812 asarrial@bbmia.com 14900 NW 79th Court, Suite 200 Miami Lakes, FL 33016 Telephone: 1-800-432-8844, (305) 364-7800 or (305) 714-4400 Fax: (305) 714-4401 3 TABLE OF CONTENTS ------_._--.-------------- 1. Schedule of Named Insureds II. Coverage Sections o Property o Inland Marine o Crime o Commercial General Liability o Law Enforcement o Commercial Automobile o Public OfficiallEmployment Practices Liability o Workers Compensation III. Summary IV. illustrations and Definitions 4 SCHEDULE OF NAMED INSUREDS City of South Miami This list includes all of the named insured'swe presently have on your policies. Should any revisions to this listing be required, please notify our office immediately. Please Verify the Accuracy of Each Name and Update List, HNeeded. 5 PROPOSED PROPERTY COVERAGE Insurer: Preferred Governmental Insurance Trust . Location of Premises: Per Schedule Attached Description of Property: Blanket Building & Contents Limit, per attached schedule $22,763,841 Vil1ues Insured are Ultimately Chosen by the Client. In view of the continually changing cost of construction and buildirzg materials, we strongly suggest that YOIl review your property values annually. ANY changes in the occupancy of an insured location should. be reported to our office immediately. Changes in OCCltpancy can potentially reduce or negate the coverage afforded by your property policy Description of Coverages Proposed: Policy Form: Building & Personal Property Coverage Fonn -Special Causes of Loss: Special Form: Excluding Earthquake/Earth Movement Coinsurance: Building & Personal Property: Nt A Valuation: Replacement Cost Flood Limit: Per Occurrence and Aggregate: $1,000,000 Excess of NFlP Whether Purchased or Not 6 PROPOSED PROPERTY COVERAGE. Continued Property Extensions of Coverage: . For a full description of terms, definitions and conditions, please refer to the policy documents. . Accounts Receivable Additional Expense Animals Loss of Business Income Debris Removal Demolition, Ordinance and ICC Expediting Expense Fire Department Charges Fungus Cleanup Expense Lawns, Plants, Trees and Shrubs New Locations Personal Property of Employees Pollution Cleanup Expense Preservation of Property Recertification Service Interruption Coverage Transit Errors and Omissions Vehicle Property Coverage 7 Coverage $ 250,000 $ 100,000 $ 1,000/$5,000 $ 500,000 $ 250,000 $ 500,000 $ 55,000 $ 25,000 $10,000/$20,000 $ 25,000 $ 2,000,000 $25,000/$50,000 $25,000/$50,000 $ 250,000 $ 10,000 $ 100,000 $ 250,000 $ 250,000 $0 PROPOSED PROPERTY COVERAGE .. Continued ..• Deductible: All Other Perils: Named Windstorm: Flood: Coverage.Enhancements: Boiler & Machinery $ 2,500 Per Occurrence -Building & Contents and Extensions of Coverage 5% Per Occurrence -Subject to $15,000 Minimum $2,500 Per Flood except zones A, V excess ofNFIP, whether purchased or not $22,763,841 NOTE: Detached walls, fences, radio and TV antennas, trees, shrubs, plants free-standing property improvements such as athletic equipment, windscreens, lightpoles, satellite dishes or signs are not covered unless specifically scheduled on the policy. Property and Extensions of Coverage include. but are not limited to the following exclusions: • Earthquake/Earth Movement • Terrorism • Electronic Data • Electronic Date Recognition • Asbestos • Pollution • Fungus .• War, Nuclear • Ordinance or Law -Limited per Extensions of Coverage Note: The PGIT property program is a shared limit. The limits purchased are a per occurrence limit and in the event an occurrence exhausts the limit purchased by PGIT on behalf of the members, payment to you for a covered loss will be reduced pro-rata based on the amounts of covered loss by all members affected by the occurrence. 8 WINDSTORM & HAIL DEDUCTmLE SAMPLE ILLUSTRATION FLAT DEDUCTffiLE vs. PERCENTAGE Windstorm and Hail Deductible This deductible would apply to a claim for damage caused by windstonn. ~i::\~ ij!:Jl.li·~l~·:~ ~J;l~t ;,~r;: ·;.~\<:E~i (1~~\~/~~i~::::t~;1~;~ii;;:B'~~'J(~'J~ r,rlh:;~:i;~t rylb,rf((\~ j'<li;':!(}:~;2~ ~~) ~;~r,~~~~~:,~:~.~'f·~'~~:'~~ i~\?:~X'/,~::~ Bldg. #1 -$1,000,000 $5,000 $20,000 $30,000 . $50,000 Bldg. #2 -$2,000,000 $5,000 $40,000 $60,000 $100,000 Bldg. #3 -$3,000,000 $5,000 $60,000 $90,000 $150,000 Bldg. #4 -$4,000,000 $5,000 $80,000 $120,000 $200,000 TOTALS: Value -$10,000,000 $20,000 $200,000 $300,000 . $500,000 Percentage wind deductibles are calculated as a percentage of the total replacement value. The deductible for all other perils applies to an "occurrence", not per building. 9 Unit. DDt IJIIII ODJ GOI CHI6 CIIHi OlD' IKI8 fJIIIIP 010 SCHEDULE OF COVERED·PROPERTY· desa1ptJan YearlllDlit Eft._ BId~YmIe "RdaIlimlred" DJue; Mfdress canst"1)pe "1l!na DiIbP om-.ViaIue I _I'1I1:II . -0WIIr8lB 1 0NI!II1IIB.............. 1 ....... Yr._ CAo\ III!IIII staIt antEr ''flU: 111/0'11'2017 $471,.2l1lI 6125 SW·68 SIn!et $f76,.6Ii SIIU1II Miami, fL lJl4J "'-JM 11110112llt1l S!l.4Il flat , Law«1Q) ..nit up nIIIf.'aut!Jilllell 1 Alblkwadls Oftia! IlUiIdalg " .. 11110012lltl $28t,.2IIC .f1WSW7!lthA_ $2IIIJ.511 SOUtb lliamli, FL 1314J '''-JM 11110112D111 S7.J11 Hip I !.aWfcfOI AiiJIalt $I1ingIe I J S'IIIfilg.eIMatm' PIIeIl Offi'ce 11M 11110012Dll $54.0lIl .f1WSW7!lthJM!n1llf $M,oaI SOUtb Mlami!, FL ])14J 10lO112D18 . $I 111 -fA t1at I !.aWlc 10) ..nit lIP roaf wfllllt pavell 1 SDtidWilSlJ! lIIdJ -SlIaJ ~ 1'l1li 111101t20J7 $UZ"u' .f1W sw7!lth A_ $185.%51 $I: SlIIIduliami'. R.lJ14J t51-He tO/O1J2IIt1 5bed I Law «1D} A<iphalt fiI&4l! 1 I 0."" IIIIr.a!J.e I'iM 1111011211t7 $5IID.-. .gsSW7!lth.A_ $5IO,1iOII $I: suudUliami\, fLla14J 1WOll2D18 111 -MltC t1at I Law ,e10) AIlphidt sJmsIe 1 1 otPlIII!piIirs'bop t'H2 ~12Dt7 SO,IDI .f1W SW·:mI!.A\<emlII!-$0122,761 SGQI:h MiaJnj, R.l314J 1III01/211ta Sft,l61 11'-JIIt f1al , Law« tot steet -stInding Seam J 1 Polite -. dd!i 1'IM 111101J2Dt7 $IB._ 41& SW7!lth .A¥eI'I1Je SC $II1,'lCII !illUdJ1oIiarm. fL ll14J tlll011211ta "'-..1M f1al I Law (c. lot ..nit up nlGfw'aut gravel, 1 I DiIntI!: &_ flISa!ll. Pad111l!Imis Pm SIIqIo I1I1l1!5tl1111m BIdJ '''7 1OJ01J2IIt7 $95.- MIIOAed-.J $I $95,_ Sllud .... llni, FL lJ14J 111101/211ta nt-fR f1al I Law (c tQ) ..nit up nIIIf .'aut~' 1 DafIteo &_ FasmII ...... -a GaJi!IIas "65 111101 (21)17 $e5.01X HIIII Aed-.J $65,1l!11 sauth I.Iii!nJf. FL 1114J 111f01/2Dt8 ·S~ t52-tIC ~ I MedPD{tOtD30) ASpIIalt shinp! 1 , IIIIIIte B.. RISa!U Pall! -e.1tarTn!"TI!nnis c.aurts ($6,SIIII 19115 II1101J2Dt7 $18,_ ~ ................. $123,!i011 UODIIII!dIallld $II SauthMlami!. fLl!l-4J 111101/211ta 1Q2-PIFO MIA I MIA MIA I 1 10 I I I ! 1 i ~it. 011 au 00 at .. Gt5 Gtl Ot7 I1tB D19 OZII SCHEDULE OF COVERED PROPERTY Continued DeuriptiDn, Year lluilll: Etf. oa .. Bui1tfins vatUii!' Ad'IRss cmstlYPe ~ Dale 0lab!Ilts vallie Raotlhape I ADar PIIXD IUMII QIftr1Il11 I COftnnR III!pIaD!II Dante '8-fiK5l!O Park I PlaJ!graunlf ($6,_ ContEIIts 1'175 10JOU2OI7 $1Qf,~ _-LJ ___ lIIiIIIIlIed RoiI.d $II S4lu1bIAiami, FL nl-e 10101/21)18 flll-PITO MIA I MfA "fA I 1IiIIIII!&. Faso!iI Park -2 RzqIIeIIJaII £alItS 1'f1!> 'OID1/2017 Sm,&e 8lIOII lied RoiI.d sauth JIiami, FL ])14J 10/01/2018 $~ 11ll· PITO MIA I MfA lilA I Dante'&. Fasa!IE Park -I ~ coon ,_ 10101/2017 $13,_ Il6OO lied III03d $II SIIUIb I.Iiami\ FL U14J 10/D1I2018 till· PITO HlA I It/A MIA I _i&. flIlII:I!II· 1 TikiiHut US 101.01/2017 $tO,_ II6IJO lied III03d 'SaUtb 1.IiiImi, R. )]143 11,-JM 1OfOlJ2I)1! $II P)'ramid I 14&dium (to tD lOt Waad 5b1Ikes I Dante lB. RIscI!Ii canBlWlity 5tIJI'a!p! 1'67 1010ll2017 $63,.OD11 IIMJII RerlIIiDad sauthMiami; R.UI43 101D'1/2ln8 $II UI·FR F1n I laW{< 10) Built up raafwilflyavel I RJdis: Pad< Palnlion ($4!iI6O COOllI!ms rncluded) 1'1'5 10/01/2011 $l1,OIX &H5SW81SUI!et sauthl.liamf,. R.3lI-e 101m/lOI8 Stpil 101 • fr.Ime Hip 1 IiIediI8n lt~ tD.lO) Asp1Jalt Shingle I ~PiUII· lIa1hroom ,n2 10101/21)17 $Bt,.ODll _ SW 81 street. 5clutbHiami,. R.1Ufi 10JOIJ29t8 $II U'l-.1M F1n I l.aW(c to) light~ PiIneIs I RJdas;iPadtP~ a ~Sets In.1 10101/2017 $70,76'1 l 644S SW 81 stIw!t 'SaUtbMiami, R. ])143 10JOI/2018 $II tlll-PITO MIA I "/A MIA I RIJmer Pari· Field SIIiriIJe Building 1'177 10101l2011 $'I!>,5IJI! 6445SW 81 stIw!t SGuth Miami, FLlJ1.4J '0/01 (21)18 $II t52·HC. F1n I Law (c 10) i!Wlt up raaf with '!J3lII!l I PaImI!r Park flIIIlIIall~ Bld!l ,. 1't17 10101/2017 S75,GIJIJ -6.lII'ISW61thAvenue SoUth I.Iiamt, Fl.. UI4J '''' •. JM 10101/2018 $4>,73~ F1n I Law«( fa) Bililtupraafwith,~ I 11 TDtaI insured vahle I IUlOJ Yrmt $t04,.Ollll I $2iI,6~ I $1.1,_ I $10,_ I $61,lJllll I $15,'5'!iII I $84,00II I $70,76'5 I $4!>;1iCI: I $12O,73Ii J OIit. 02.1 OU on OU 1125 026 027 - ft9 0)0 SCHEDULE OF COVERED PROPERTY Continued Deosaiptian y __ amlt Elf_Dale t IkIiIdinw ViIIuLo J ~ TemI Date C!nteI1IS value TClCiIllnsun!d VliflIe comt"J'ft1l! -~;qM!' I Roaf PiCJ:tI RIIOI CCM!rina 1 COVI!mIg ""Pac>eII I -Yr Btl Pa/mer park fIXI$aIl. ~ ADam 1'1'15 10/0112017 $D,OIIII fi101 SW 61th 11_ $52,5100 SIIuth Miami, fl.:!3143 10101/2018 $1'l1.5011 11'1-,& Flat I .... (~10) BuiltupRlClfwith !Fi"'ell I Palmer Park field House 1917 I01m/2M7 $.115,6111 61011 SW 61th A>'I!I1UI! $174,76 SIIuth Miami, FL 33113 10/0112018 ~.141 11'1-,& ~ I Law(c 10) ASpball SIIi"!#e 1 1 PalmerPillll:PIa:~ 1717 lD.fm 12017 SUi.1IK 6701 SW 61thA'IIt!IlIJI> $26.1JOIi 5auth Miaml, FL )1143 1010112018 $1 lm-PITO HIA I MIA MIA I 1 Palmer park I 12110 ft of!> ft High R!nCI! 1')711 '0/0112017 $13,ID 6701·SW 67th 11_ $11,001 SlaUtII Hiami, R. 3U43 10101/2018 $I 1tI!Z-PITO MIA I HIA KIA . I J Palmer Park -1000 ft Of 10ft fIi&b R!Inil:e 1')711 1~D1/2017 $16,_ 670'1 sw 61thA_ $16,'111 SCIutII Hiami, fL 11143 101011201-8 $~ 1CPl-PITO H/A I MIA ItIA 1 I ,Palmer PH • Re$!roIm lll<lli 1')77 10101/2017 $lK,6111 670'1 'WI 67th Avenue SIH,61lI ~ '-liimIi, fll3t<O 1010U1I)18 $I 11OJ-lM Flat I lDW{< lD) Bw1t liP raufwitJl9<M!l I 1 Palmer PH -CIH1D!S5i.OIIIlk!!l 1977 101ml2Ofi $5i,1D 6701:SW 61th AYeIJIIe $54,001 SIoutb Miami, fL 131-6 10/0112018 $1 WI-lM Flat I .... «10) lluilt up roafWfaut ~ J BreWer Park -2.RaIapJeCflallcaurts nll!l lD1D1J2D17 $D~ 6lOuSW 56th SUI!I!t S'28,66! soutIIloIiaml, FL 11143 10101/11)18 .3 110J -lM Flat I UM{<ID) Built,Iip RICIf with yavel I 1 IInaWi' Padc -117 ~ out 1'.11181 10/0112017 $13<,00II 6lOIJ:SW 56th _ $13.000 SGuthHiam'i, fL 331-6 10101111)18 $~ 1CPl· PITD MfA I MIA MfA I I _ Park . p~ amt SWing set 1988 101m 12.017 '$3C,1:z!i 6)00 SW 56th_ S34,I2!l SGuth 1oIiami, fL 311-6 10/0112018 $1 1M· PiTO MIA I MIA KIA 1 I 12' unit. OJi on QJ3 OM Itlli 036 ItJ7 OSB 0)1 010 SCHEDULE OF COVERED PROPERTY Continued I2Ii!KIfptIan YIB'IIIIID: Em: DiII!e ~Yahie MIfres DIIISt~ "R!mI o;a. 0InImIIs 'BIae -'liIIiI!JV l IIDIBPIID'I -CInaiiIB. I co.wma _1aD!d IIn!IWIr I'IIIIIt -21'l!1mis:0IUIts ". 101OIImt7 $D.GOO 6lODSW WI! Street ScMbfliami,. fiL31'41 lotD'lI2D1a $II Im·PITU N'A I NIA NtA I IIn!IWIr PiIIk -410ft of 10 It Hi!lb 1'4!I1te 1'J'IIJ 1010112lH7 $7.- 63IJO SW 56th"S1J1!l!l: SIIUtb Miami,. R. 3]'41 1010U2D1a $II lm·PITU NfA I MIA IfIA I __ P;ak • leD It of Ii It HigfI RIlla!, 1'J'IIJ 100D'1/2D1? S3.'fIIIIj 63iIJ SW 56th itII!et 5GUth MiaJrdr 8.331<0 lotD'1/2D1a ~ lm·PITO MfA I HIA KIA I JiI8Ta1r PaIIl-:t SfJade Stn/min!S 1'J'IIJ 101D'1J2D1? . $:I,GOO 5111)SW M SIn!et SIIUtb Miami, fiL3i1I<O 101D'1I2D1a $II l1'1-JM eaIJle end:willlllllt IIradr!g 1 laW Ie lot AspIlal1:SIIin&Ie I JiI8Ta1r PiUI< I c::GIIJIIIIII1ity center 1'185 10/CII/2D17 SJlIO.GIIII 67111 SW 5& PIau! $II SllUtbMiami, fl.31'oU 100M/mia 111-MItC PJramid I Madfi!m (10m 30) steEl-Sbn6Ig seam I RlljRIIUtfer AdivilyCenlll!r ,. lD1D'1J2D17 $Z7J"MII 1701 SW!ill PIaa! fGUthMiami, FL 3JI1J 117-Jk\ tD/D'l/2D11 .$11 ~ J MI!dimD (lom3O) steel-S'tIIIding seam I Off"lIlBIPllIiI:e SIDtaI:ian ,ft'! lD1D'1/2Dt7 $II ~'SInI!t1lfil& , fGUthMiami. R.3:J1.B lD/D'l/2D1B sn.!iIIII "'-.1M e.iIIII! I!IIdWilflauthraciJJg I laW '.c,0) A5pId SlJioJIe I City Hall I PaIia! 1'J56 lD/DU2D17 S3,B:w,.1IO 6130 sunset DriIIe sauthllillmi •. fLU'41 101D1/2OU1 U'JS.41.I l\t-M f1at I laW «'0) llllil't up RIIIf with pel I SilIIa MartiIt 8IdJI 1'» 101D'1/2D17 $42D.,1II 613D"5IB15I!t Ilriur! sauth Miami, fL 31'4) lOtD'l/2D1a SRI,,11III 1"-./14 Hip I MeIIimI·(10 to JII) _halt SIJin&«e I sauth &Iiamf CIIIIIIII·CI!MI!r I • 211m '101D'112D17 $l,21B.,5l6II 5IIDlJ SW fI6 StIeet SllUtbMiaJn1, F1.311G 111 -MNC lD/D'lI2D1a ~ f1at I laW{< to) 1IIIilt!IIP raafwith!fillld I 13 T.ul1lISUn1d value I _YUKI -,pIIlI I 57,801 I Sl.'lIIII I $2.1D 1 $l61IJIIIIJ I $21106- I sn.- I S4,235,372 I $476.- I Sl,6IIa.MI I ~itlJ lKi 1K2 IKJ 014 IK!i 046 1K7 018 IH9 050 SCHEDULE'OF COVERED PROPERTY Continued DesaiptiIJn Year_ Eff_~ ~'IDIe Ac!Ihss 1l!rm Dale 0Int<!IIb Ville ~ IMUrellvalue _:;n~ I . IIAHIIPlttII CIimt~ IIIlIlt CD'IEflIlII I CDvemIB ~ I RlIIIJT Yr Blt Je!i1II Willis Pall< I Q\IZebo 1m 10/MJml7 $1'1,.6111l 12m SW 61st:CGurt $17.!ilIII South Miami, fI.. U143 1M -Frame 101atlmlll $1l PyWI7id I ItIediIm (10 to 1U) ASphalt SI!~ I t MaIfAsaIl WiIIimison Pari< I Ca:D!bD 1'J71 101·M 12QI17 $65,- 6121 SW 68 SII1!et $61>,001 South IAimR,. fl..3l14] 101DlImli $1]. 152-tIC. Pyramid I ' Medium (10 to lIIJ ASphs1t~ 1 1 h\lIr5IMl WiIiiuruan Pmt I pla)9tmnd iIIId :swillg set '1.,." ID/at/1M7 $3:l,!iIIII 6121'SW68_ $l%,!ilIII South JAiami. fl..331-43 10/M/1I)11 $I 1M· PlIO NfA I KtA NIA. I I Marsloall'Williamsan Pari< -2 Temtis ClIurt5 1'I'J1 101,1I1/m17 $52:,_ 1f>12.1SW68S_ $52,lI0II Sauth IMami, fI.. 3314] 1M-PlIO tOt,M/ml8 $1 NtA 1 IfIA IIfA 1 1 Clirt SCout PIqJ>!Ity "65 101.Dllml7 $7H,OMI 116m sw ,60SlJeet $Ut.06(I sauth IAiami. FL 3-3111 10/Dol/2011 $1l 'U'i-JM Hip I Medium (10m 1II) Asphs1t:slliJ191.e 1 J I'aIkinj 0iIIagt!! 200It 10/at/1M7 S8.flS,m 5112:, S.W. 73_ S"4K~ Sauth I.liami, FL 3314] 131 -fA lD/DoIJ1M1I 51 F1al: I I.JJW (e 10) c..ncretI! TIle J I DiRln Pirt --!mEIIo nu 101,111/11)17 Si5,ooi SW §IlIII Ave Ik SW III! St $7.5,0lIl $I ~IU&iami. FLl3t4] 10l0t/1MI 1!)Z. NC I'yr.UJIRI 1 MedimI (lOmE) ASphalt SIJin!IIp 1 I PDtiIJI!o SUb smian 1_ 10/01t1M7 $I fi1B SW 5'1 Ftaa! $Z6,0II Sauth Miami. FL 33141 10/at/mtll $76.001 lW-·JM F1al: I LaW (e 10) ASphs1tSl!~ 1 J ·1iIII:sShel.1W ''in ID1111/1M7 $511,_ " SiR GIf sunset Dr &. S5GJlIII Aflprox ~ ~Ave 10/0U1M1I $I 1!i:t-NC F1al: I 1.aW(~ to) LiFt-...Ji~ I I IIlIS SheIIX!'r 1'in 10HI1/1G17 ~!iU}JIII N ~of Sunset Dr lit $50,000 AfJpmx lDOftw of SWJi1 ~ 10IDol/1M3 $II ; -a... . ........ _ t!i2.-Nt: F1al: I lDW « 10) ~~PiU11!4s I 1 14 I I Oait'" OS1 O!t2 053 . 054 055 osa SCHEDULE OF COVERED PROPERTY Continued DI!Saiptjan Vearllllifl Eff. Date BuiHl'mJYalue Address . T __ 0IIIII!I'lI$ value IUKllliRape I RD!I11'\t!n GIml'1)pe _ CloYerII18 I C'cm!r1I1IlIII!placeG IlusSheller '"' 1!J/01/1017 $5D,~ 'S $ide of S«mset Dr & Jlppnlll ~DD!tEcfSW ff7 Ave 10101./201. ~ 1M-He F1.at I Low« 10) 1i!fIt Me!lIIPaEs I IlusSheber 1'I'JI! 1010111017 .~,QIIO :S $icle of SImset Dr a s Mimri Ci~ Hall SiU> (6130) 10101/101a $0 l!i2.-III: Rat· I Low « 10) li!IJt Metal PimI!Is I _Sheller 1'J'H 101D1/2DI~ $511~. E 5ide of sow 62 AYe a App_~'~St 10J1)'J/2Dla ~ 1!i2.-NC Flat I 11M « 11)) 19tt.MetaI Panels I NimaYl'arkPolll, spta.h Peal. ~ 2014 10101/1017 $1,314,411 6'21.SW 68th S'tIeet South.lliami, FL 131-B 10101/10111 $U ttot -1M f1itt J LIIw « 10) Built up nKlfwitb!Javel I -a DIIlIbie Qa!e B>t.Iosure 20tIi lD1D1/2D17 . 54,_ _SW7ll~ SmIth 1.Iiamf, fL31t-6 10/01/1018 So 1 lIZ -PITO I I I"IIIia! f\JeIins S1a1iao 2DOJ 10101/21)0 $1601~ 6UO SInet IIri!Ie scutII Miami, FL 33143 lD1Dl/101~ $10,"1 11' -JIM I I "PIb11mUn!d Vi!Iue . I JlOCII'vrllK $!>IJ,OOIJ I $!>IJ,1IIIl I $§O,OOIJ I $1,384.411 I $4,<f1!i I $17I,.f04 I I TOtal: I $11,7D1,UO I $l,D62,!l81 I .su,.761,1141 15 . PROPOSED INLAND MARINE COVERAGE Insurer: Preferred Governmental Insurance Trust Description of Property: Parking Meter Equipment -Blariket Unscheduled Subject to $25,000 Any One Item Excludes Watercraft Causes of Loss: Special Form: Excluding Flood and Earthquake Values of Insurance: $417,896.00 Loss of Use coverage is not automatically included Valuation: Actual Cash Value Deductible: $1,000 Exclusions Include But Are Not Limited To: Flood Earthqua.k.e/Earth Movement Terrorism Biological or Chemical Materials Electronic Data Electronic Date Recognition . Asbestos 16 · PROPOSED CRIME COVERAGE Insurer: Preferred Governmental Insurance Trust Type of Policy: , . Combination Crime Limits of Coverage: Covers loss by forgery alteration prormssory notes (except by an employee) that are made or drawn by the insured or his agent. Covers against theft of money, securities, or property by using a computer to transfer covered property from the insured's premises or bank to another person or place. No coverage is provided for theft of information or for computer vandalism. Other Coverages Available: D. Robbery and Safe Burglary E. Premises Burglary G. Extortion H. Premises Theft and Robbery Outside 1. Lessees of Safe Deposit Boxes 'J. Securities Deposited with Others Deductibles: Employee Dishonesty Forgery or Alteration Computer Fraud Theft, Disappearance or Destruction 17 PROPOSED GENERAL LIABILITY COVERAGE Insurer: Preferred Governmental Insurance Trust Type of Form: Commercial General Liability -Occurrence Form Limits of Liability: Damage to Premises LeasedlRented to You Bodily Injury and Property Damage Deductible Higher Liability Limits may be A vailable Upon Request Exposure Basis: Be sure to get Certificates of Insurance with "Adequate" Limits and Coverage from . Subcontractors, to avoid being charged as though Subcontractors were your Employees. Coverage Enhancements: Herbicide & Pesticide -$1,000,000 Aggregate Limit Sewer Backup and Water Damage Limit -$10,000/$200,000 Exclusions include but are not limited to: • Pollution • Asbestos • Mold • Fungus, Bacteria • Lead • Nuclear • Medical Payments • Liquor Liability • Copyright or Patent Infringement • Terrorism 18 PROPOSED EMPLOYEE BENEFITS LIABILITY COVERAGE Insurer: Preferred Governmental Insurance Trust Coverage Form: Occurrence Limits of Liability: Deductible: N/A Employee Benefits Liability: 19 PROPOSED LA WENFORCEMENT LIABILITY COVERAGE Insurer: Preferred Governmental Insurance Trust Type of Form: Occurrence Limits of Liability: Per Person Per Occurrence Aggregate Deductible: N/A Exposure Basis: Law enforcement Number of Officers 20 45 Full Time 1 Volunteer PROPOSED COMMERCIAL AUTOMOBILE COVERAGE Insurer: Preferred Governmental Insurance Trust Limits of Liability: JJaJ111aJ=:'~ Coverage New or Replacement Vehicles Must Be Reported Immediately so as to avoid any possible in coverage Auto 7 & 8 . Higher Limits of Liability May Be Available Upon Request Description of Vehicles: Please See Attached Schedule of Automobiles which indicates those vehicles that include Comprehensive and Collision Coverage Enhancements: • Hired Auto Liability • Non-Owned Auto Liability • Hired Physical Damage Limit: $75,000 Subject to deductible NOTE: The vehicles listed on this policy must be owned by, titled to or leased to the Named Insured. 21 VEHICLE SCHEDULE. 22 VEHICLE SCHEDULE Continued .... 23 VEHICLE SCHEDULE Continued .. 24 VEIDCLE SCHEDULE Continued 25 VEIDCLE SCHEDULE Continued 26 VEHICLE SCHEDULE Continued 27 I I VEIDCLE SCHEDULE Continued 28 I I I I I i j i PUBLIC OFFICIALS & EMPLOYMENT PRACTICES -. PROPOSED LIABILITY COVERAGE Insurer: Ace American Insurance Company Type of Form: Claims Made -Retro Date Per Policy Form Extended Reporting Period: 12 months for 100% of last annual premium Limits of Liability: Defense Costs are Within Limit of Liability -Capped at $1,000,000 Deductible: $75,000 Public Officials Liability -Public Entity Liability -1 A2 and lB $100,000 Each Employment Practices Violation -IC $250,000 Retention applies to all Zoning Claims and Matters Exclusions Include But Are Not Limited To: Network Security or Privacy Liability Exclusion Bond Exclusion False Claims Act Exclusion Subject To: Final review of loss runs 30 days prior to effective date 29 I I . f PROPOSED WORKERS' COMPENSATION .COVERAGE Classifications .& Exposures: Premium Higher Limits of Liability My Be Available Upon Request Policy is Subject to Audit Additional States of Hire must be reported when payroll begins in that State Certificates of Workers Compensation Insurance are required on all work performed by persons other than its employees Subject To: Signed PGIT we Application Signed Drug Free and Safety Program Applications 30 SUMMARY OF ESTIMATED PROPOSED PREMIUMS· Premiums as Proposed: Property Including Boiler & Machinery General.LJA.:"".UJ Automobile Inland Marine CrimelFidelity -Law Enforcement Liability Public Officials Employment Practices Liability Workers Compensation Subject to Audit Premium Fees Taxes/Surcharges Total Premium Fees Taxes/Surcharges Total Premium Fees Taxes/Surcharges Total Premium Fees Taxes/Surcharges Total Premium Fees Taxes/Surcharges Total Premium Fees Taxes/Surcharges Total Premium Fees Taxes/Surcharges Total Premium Fees Taxes/Surcharges Total If:lnu"" rOT'O~'n' a.nn;ua.~IZE~a premiums oil any m',rlfI~.rm Fees shown above may befully earned at policy inception Expiring Municipal Payroll $4,303,578 vs $4,015,903 Renewal Workers Compensation Experience Modification Factor 1.04 Expiring vs 1.06 Renewal . Workers Compensation Payroll $7,916,544 Expiring vs Renewal $7,221,814 31 Payment Option: "" " " " PGIT Package: 50% Down, 25% due at 75 days and 25% due @ 166 days " POiJEPL: FUll payment at inception -Financing :may be available Workers Compensation: 25% Down and 9 Equal Installments A 25% Minimum Earned Premium applies to the following policies: Preferred Governmental Package and Preferred Governmental Workers Compensation Quotations Subject To: • Signed Acord applications • Signed and Initialed PGIT Applications, Signature Page, UM Fonn • Abuse Prevention Policy • Signed Ace and Acord Applications ~ POL & EPL • Review of Currently Valued Loss Runs Prior To Binding: Ace American POLIEPL Quotation is valid until the effective date of the policy. This proposal is based upon the exposures to loss made known to the Agency, and is for illustration onlY. Any changes in these exposures (i.e .. new operations. new products. additional states of hire. etc.) need to be promptly reported to us in order that proper coverage(s) may be put into place. All physical exposures insured by our policies must be owned by the named insured. This proposal contains only a general"description of the coverage(s) and does not constitute a policY/contract. For complete policy information. including exclusions. limitations. and conditions. refer to the policy document. In the event of a difference between this proposal and the policy. the policy will prevail. " • 32 A.M. BEST RATING OF PROPOSED COMPANIES Preferred Governmental Insurance Trust Ace American Insurance Co. Commercial Property, Crime, Inland Marine, General Liability, Law Enforcement Liability, Commercial Automobile, and Workers Public OfficiallEPL GENERAL RATING Not Rated A++XV Yes Yes These rating classifications reflect BEST's opinion of the relative position of each company in comparison with others, based upon averages within the Property-Casualty insurance industry. They are reflective of overall company services and standing within the industry. A++,A+*** A,A-*** B++ B+** NR' Superior Excellent Very Good Not Rated B B-*** C++, C+*** C, C-*** Good Fair Marginal FINANCIAL SIZE CATEGORY The Financial Size Category is an indication of the size of an Insurer and is based on reported Policyholders' surplus plus conditional or Technical Reserve Funds, such as mandatory securities valuation reserve, other investment and operating contingency funds andlor miscellaneous voluntary reserves reported as liabilities. ($ In thousands) Class I $ Up to $ -1,000 Class II $ 1,000 To $ 2,000 Class III $ 2,000 To $ 5,000 Class IV $ 5,000 To $ 10,000 Class V $ 10,000 To $ 25,000 Class VI $ 25,000 To $ 50,000 Class VII $ 50,000 To $ 100,000 Class $ 100,000 To $ 250,000 vm Class IX $ 250,000 To $ 500,000 Class X $ 500,000 To $ 750,000 Class XI $ 750,000 To $ 1,000,000 Class XII $ 1,000,000 To $ 1,250,000 Class $ 1,250,000 To $ 1,500,000 XlII Class $ 1,500,000 To $ 2,000,000 XIV Class XV $ 2,000,000 To $ More This infonnation has been provided to you so that consideration is given to the financial condition of our ~roposed carriers. The financial information disclosed is the most recent available to Brown and Brown of lorida Inc. -Miami Division. 33 COMPENSATION . In addition to the commission or fees received by us for assistance with the placement, servicing, claims handling, or renewal of your insurance coverages, other parties, such as excess and surplus . lines brokers, wholesale brokers, reinsurance int~rmediaries, underWriting managers and similar parties, some of which may be owned in whole or in part by Brown & Brown, Inc., may also receive compensation for their role in providing insurance products or services to you pursuant to their separate contracts with insurance or reinsurance carriers. That compensation is derived from your premium payments. Additionally, it is possible that we, or our corporate parents or affiliates, may receive contingent payments or allowances from insurers based on factors which are not client-specific, such as the performance and/or size of an overall book of business produced with an insurer. We generally do not know if such a contingent payment will be made by a particular insurer, or the amount of any such contingent payments, until the underwriting year is closed. That compensation is partially derived from your premium dollars, after being combined (or "pooled") with the premium dollars of other insureds that have purchased similar types of coverage. We may also receive invitations to programs sponsored and paid for by insurance carriers to inform brokers regarding their products and services, including possible participation in company-sponsored events such as trips, seminars, and advisory council meetings, based upon the total volume of business placed with the carrier you select. We may, on occasion, receive loans or credit from insurance companies. Additionally, in the ordinary course of our business, we may receive and retain interest on premiums you pay from the date we receive them until the date the premiums are remitted to the insurance company or intermediary. In the event that we assist with placement and other details of arranging for the financing of your insurance premium, we may also receive a fee from the premium finance company. Wholesale BrokerlManaging General Agent: Public Risk Underwriters This intermediary is owned in whole or part by Brown & Brown, Inc., the parent company of Brown & Brown of Florida, Inc. -Miami Division. Brown & Brown entities operate independently and are not required to utilize other companies owned by Brown & Brown, Inc., but routinely do so. In addition to providing access to the insurance company, the Wholesale Insurance Broker I Managing General Agent may provide additional services including, but not limited to: underwriting; loss control; risk placement; coverage review; claims coordination with insurance company; and policy issuance. Compensation paid for those services may be up to 15% of the premium you pay for coverage, and any compensation paid for those services is derived from your premium payment. The fee, if any, for the Wholesale Insurance Broker's/Managing General Agent's services above is $ No Fee. Should you have any questions, or require any additional information, please contact this office at 1-305-714-4400 or if you prefer, submit your question or request online at http://www.bbinsurance.comlcustomerinquiry.shtrnl. 34 PROPOSAL VARIANCE Changes that need to be made prior to binding: 35 MINIMUM AND DEPOSIT PREMIUM . . . MINIMUM EARNED PREMIUM The folloWing tenns are often misunderstood, particularly among insureds or producers not accustomed to dealing with surplus lines insurance companies. It is important that the definitions -are understood. . MINIMUM AND DEPOSIT This is the amount of premium due at inception. Although the policy is subject to adjustment based on a rate per exposure unit, under no circumstances will the annual-earned premium be less than the minimum premium. Therefore, the policy may generate an additional premium on -audit, but not a return. If such a policy is cancelled mid-term, the earned premium is the GREATER of the annual minimum times the short rate or pro-rata factor, or the actual earned as detennined by audit, subject to a short rate penalty if applicable. MINIMUM EARNED PREMIUM A minimum earned premium endorsement can be attached to either a flat charge policy or an adjustable policy. In either case, this amount is the LEAST that will be retained by the insurance company once the policy goes into effect. The amount retained would be the GREATER of the annual earned premium whether calculated on a pro-rate or short rate basis, or the minimum earned premium. FLAT CANCELLATIONS Surplus lines insurance companies normally do not allow flat cancellations. Once the policy is in effect, some premium will be earned. If you need further explanation, please do not hesitate to contact us. 36 CLAIM REPORTING GUIDELINES M~e Brown & Brown, Inc. aware of a.t1y and all incidents immediately after they occur, whether it be an auto accident, a theft, slip & fail, even a minor incident that appears will have no future activity. Do not wait for a police report. Gather as much concrete information as possible. For example, police reports, company incident reports, conversation logs, medicals and pictures -anything that may assist in the handling of your claim. Send this information either by mail, e-mail or fax to: Brown & Brown of Florida, Inc. -Miami Division Alexandra Sarria, Commercial Claim Specialist 14900 NW 79 Court, Suite 200 . Miami Lakes, FL 33016 Phone: (305) 364-7812 Fax: (305) 714-4401 E-Mail: ASarrial@bbmia.com If you have any questions or incur any problems, please contact our office and we will be glad to assist you in any way we can. 37 DEFINITIONS 38 PROPERTY DEFINITIONS Most building and business personal property policies ,b.ave a coinsurance clause, Which· requires the insured to carry insurance equal to at least a specified percentage of the actual cash value of the property. If aJoss occurs, and it is determined that the amount of insurance carried is less than the amount required, could be on the insured. When the agreed value option is used the coinsurance requirement is removed and \ the insurer agrees to cover losses for its agreed value. As an example, the insured has property insured for $100,000 and the agreed value is also $100,000, if a loss .1 occurs, any loss up to $100,000 is covered 100%. When this option is used the insured and the insurance company agree on the value of the property before the . is issued. This . IS . to one-of-a-kind nrr, ..... rh, Property can be vciIued in several different ways. Insurance companies commonly use two approaches to detennine value, which also detennines. how a loss will be . paid: the replacement cost method and the actual cash value method. Insurers consider replacement cost of a property item to be the cost to replace it with new property of likek.4J.d. Actual cash value is replacement cost, minus the accumulated for and condition. An insured can insure a building for its full value at the bt?ginning of the policy year, but at the end of the year, it might not be covered for its full value. This problem can be corrected by adding inflation guard coverage. With inflation guard, the policy limit increases gradually during the policy term so that the total increase amounts to the desired increase at the end of the term. In addition to the limits stated in the Building and Personal Property coverage form, the policy has a coverage extensions section and an additional coverages section. The coverage extensions section provides limited coverage for newly acquired or ·constructedproperty, property of others, certain out· door property;· and the cost of research and reconstruct information on destroyed records. When coverage is placed on the all risk form, two additional extensions are added for property in transit and coverage for certain repair costs related to damage caused by water. The two additional extensions are covered by certain perils only. The additional coverage section provides coverage for indirect losses that result from a direct loss. The coverage applies to removal of debris, preservation of property, fire department service· charges and pollutant cleanup and removal. The coverage extensions and the additional coverages have limitations and are subject to certain conditions. Fire, lightning, explosion, windstorm or hail, smoke that causes sudden and accidental loss or damage, aircraft or vehicles, riot or civil commotion, vandalism, sink hole and volcanic action. 39 EQUIPMENT BREAKDOWN DEFINITIONS Insurance covers to covered property when caused by a covered cause loss. Covered property is any property that is owned by the named insured or is in the named insured's care, custody or control and for which the named insured is legally liable. A covered cause of loss is a sudden and accidental breakdown of the insured's boiler & equipment or any part of the 1T"\Tr''''TlT described in the pays the extra cost incurred to expedite "'1"£""T1","''' after a 40 GENERAL LIABILITY DEFINITIONS Coverage is provided for damages arising.olit of ownership or occupancy' of the Insured premises when maintained in a reasonable manner. This al~o covers damages arising out of the insured business. Products coverage is provided for damages arising out of products manufactured, sold, handled or distributed by the insured. Completed Operations covers damages occurring after operations have been completed or abandoned, or after an item is installed or built and released for it' s int~nded Personal Injury means injury other than bodily injury. Coverage is. provided for injury resulting from offenses such as false arrest, malicious prosecution, detention or imprisonment, the wrongful entry into, wrongful eviction from and other acts of invasion, . or 'rights of private occupancy of ~ room. Coverage for libel and slander is also nrr,vu' 'P'.I in the This coverage pays for damages done in the course of oral or written advertisement that disparages, libels or slanders. a person's or organization's goods, products or services. Coverage for these offenses is provided under advertising .injury coverage only if they occur during the course of advertising the named insured's own goods, prpducts or services. Medical Payments coverage pays medical expenses resulting from bodily injury caused by an accident on premises owned or rented by theinsured, or locations next to such property, or when caused by the insured's operations. These payments are made without to the of the insured. The fire damage limit provides coverage for fire damage caused by negligence on the part of the insured to premises rented to the named insured. If a fire occurs because of negligence of the insured and causes damage to property not rented to the ins.Ured, coverage would be provided under the occurrence limit. 41 GENERAL LIABILITY DEFINITIONS Continued ... Extends your coverage to liability assumed under contract, applies to both oral and written agreements relating to named insured's business. Covers your exposure for serving liquor to clients or employees at company parties. Applies only to fIrms not engaged in business of . . Intended for fIrms, which perform work or services, rather than sell or produce products. Usually intended for construction "P"'~;t"P"<1 of installers of ..... ,"'''' ...... , Extends term "bodily injury" to. mean injury arising out of rendering of or failure to render, during the policy period; medical, surgical, dental, x-ray, or nursing services, or furnishing of food or beverages in connection therewith or the dispensing or furnishing or medical dental or . . . (Under' 26 feet in length) Provides coverage for liability, which arises from any watercraft as long as watercraft is not. owned by insured nor . used to or for a fee. Intended to extend the scope of "policy territories" to anywhere in the world. Limited to the activities of any insured who is domiciled in the United States and the original suit for damage is brought within the United States, its territories, possessions, or in Canada. Automatic protection for newly acquired organizations until the new organizations is specifically added to the policy or 90 days, whichever occurs first. Includes as insureds; (1) Any spouse of a partner concerning business activities of the partnership and (2) any employee of the named insured while acting within the scope of his or her duties. Does not apply to bodily injury or personal injury sustained by a fellow which occurs . the course of This coverage is provided automatically without an additional premium charge if coverage is canceled, not renewed, 'or the insurer renewal with a later retroactive date. The basic extended reporting period starts at the end of the policy period and last for five years for claims made against the insured within the five year period and reported to the insurer within 60 days after the end of the 42 WORKERS' COMPENSATION DEFINITIONS This "coverage agreement obligates the insurer to pay all compensation and other benefits required of the insured by the workers compensation law or occupational disease law of any state listed in the policy. The coverage applies to bodily injury by accident ~d by disease. Coverage (A) shows no dollar limit for the benefits provided since any applicable limits would be those established within the law. Benefits under are to the without to fault. This coverage protects employers for their legal liability for bodily injury by "accident or disease to an employee arising" out of and in the course of the employee's employment when not covered under the workers compensation law. Before benefits are paid Wider this coverage, the employee must prove the employer is liable for the injury. 1. Bodily"Injury By Accident This amount is the most an insurer will pay under Coverage (B) for all claims arising from anyone accident, regardless of how many employees are involved in the accident. The standard limit is $100,000 for anyone accident, which can be increased. 2. Bodily Injury By Disease (Policy Limit) This is the aggregate limit the insurer will pay under Coverage (B) for all claims sustaining bodily injury by disease during the policy period. The " standard policy limit is $500,000, which can be increased. 3. Bodily Injury By Disease (Each Employee) This amount is the most an insurer will pay under Coverage (B) for damages due to bodily injury by disease to anyone employee. The stand~d limit of for each is 100.000, which can be increased. " " In some states, workers compensation law allows an insured to include or exclude Executive Officers imd Partilers, or both, from coverage. Adding this endorsement can the individuals not covered under the This is a factor that deals with the rating of the policy. The Experience Modification figure is based on the insured's loss experience. The factor is used to increase or decrease the manual rates of insurance. This provides workers compensation coverages if the insured expands operations into other states not declared at the time the policy is issued or renewed. If the insured elects this coverage and operations begin in a state listed under other states, the insurer provides the same coverage as if the state was declared in the at"the time of . issuance. This is a federal act, which is similar to the state workers" compensation act. The federal" act was designed to provide workers compensation benefits to employees who work in maritime employment upon the navigable waters of the United States and who ate usually considered outside t4e scope of state workers" compensation laws. When the USL&HW A endorsement is added to the standard policy it applies to work done in the states scheduled on the policy and extends the definition of the workers compensation law to include the USL&HW A. 43 UNDERSTANDING THE CLAIMS-MADE POLICY The claims-made insurance policy provides financial protection for all claims presented during the current policy year, providing the claim occurred after the prior acts date. To understand the claims-made policy, we will define: Current Policy Year: The policy year begins on the effective date shown on.the policy and expires on the expiration date all shown on the policy. The policy's effective and expiration dates change with yearly renewal of the policy. The prior acts or retroactive date remains the same, so you are protected for incidents that occurred prior years by the current policy. Prior Acts or Retroactive Date: This is the date (shown on your policy) that dictates if a claim is eligible to be covered. Any claim occurring after this date, presented during the current policy year, are eligible for coverage by your current policy. Supplemental Extended Reporting Period (Tail Coverage): Should the policy be canceled or nOil-renewed, you are entitled to purchase insurance protection for any claims which may be after the cancellation date. The premium charged for this insurance is based upon the number of years you have been insured (prior acts years) and the limits purchased. 44 AUTOMOBILE DEFINITIONS liability coverage of the commercial auto policy provides protection against legal liability arising out of the ownership, maintenance, or use of any insured automobile. The insuring agreement agrees to pay damages for bodily injury or property damage for which the insured is legally responsible because of an automobile accident resulting from the ownership, maintenance, or use' of a covered auto. The insuring agreement also states that in addition to the payment of damages for which the insured is legally liable, the insurer also agrees to defend the insured for all legal defense cost. The defense cost is in addition to the limits. Covers the liability arising out of the ownership, maintenance or use of automobiles. Coverage is included for vehicle passengers under No-Fault Law The insuring agreement states that the insurer will pay all reasonable and necessary medical and funeral expenses incurred by an insured because of bodily injury caused by an accident The insured is the named insured, the insured's employees and guests, and any other person occupying a covered auto .. These payments are made without· to fault. The business auto policy provides a coverage extension if an auto is insured for comprehensive or specified cause of loss coverage, which insures against loss of use of a covered auto only if the auto is a private passenger type auto and is stolen. The coverage extension pays up tQ a daily limit of $10 and a maximum limit of $300. Payments begin forty-eight hours after the theft and ends wheri the insured auto is returned or when the insurer has paid the insured for the auto. For broader coverage, the insured can pay an additional premium for rental reimbursement coverage. Rental reimbursement pays the cost of renting a substitute auto for replacement of any covered auto that has suffered a covered loss. The daily and maximum limit for this 45 COVERED AUTO DESIGNATION SYMBOLS Owned "autos" only. Only those autos you own (and for liability coverage any trailers you don't own while attached to power units you own.) This includes those_ "autos" you acquire ownership of after the Owned Private Passenger "Autos" Only. Only the private passenger "autos"-you own. This includes those private passenger "autos" you acquire ownership of after the policy -Owned ~'Autos" other than private passenger "autos" only. Only those autos you own that are not of the private passenger type (and for liability coverage any "trailers" you don't own while attached to power units you own.) This includes those autos not of the private passenger type you acquire ownership of after _ the Owned "Autos' subject to No-Fault. Only those "autos" you own that are required to have No-Fault benefits in the state where they are licensed or principally garaged. This includes those "autos" you acquire ownership of after the policy begins provided they are required to have No-Fault benefits in the state where they are licensed or . 46 Owned "autos" subject to Ii compUlsory uninsured motorists law. Only those "autos" you own that because oithe law in the-state where they are licensed or principally garaged are required to have and cannot reject Uninsured Motorists coverage. This includes those _ "autos" you acquire -ownership of after the policy begins provided they are subject to the same state uninsured motorists Specifically Described "autos". Only those autos described in ITEM THREE of the Declarations for which a premium charge' is -shown (and for liability coverage any "trailers" you don't own while attached to any power unit described in ITEM Hired "Autos" Only. On.ly those autos you lease, hire, rent or borrow. TIris does not include any "auto" you lease, hire, rent or borrow from any of your employees or partners or members of their households. NOIl-Owned "Autos" Only. Only those "autos" you do not own, lease, hire, rent or borrow that are used in connection with your bUSIness. 1bis includes "autos" owned by your employees or partners or members of their households but only while used in your business or your personal affairs. CRIME DEFINITIONS Employee dishonesty is considered . t~ be acriniinal act committed by an employee acting alone or in collusion with others. There must be intent by the employee to cause the employer a loss and to obtain a financial benefit for the employee or someone else. Coverage is provided for dishone~t acts of employees of the named insured only~ Coverage insures against loss of money, securities, and property other than money and securities. The blanket form provides coverage for dishonest acts of all employees. The limit for blanket coverage applies per loss, regardless of how many employees are involved. The scheduled form provides coverage only for the dishonest acts of employees specifically listed in the policy. On the scheduled form, a separate limit applies to each employee listed on the schedule. Forgery is generating a document or signature that is not Alteration is changing a document in a manner that is neither authorized nor intended .. This form insures against loss caused by the forgery or alteration of a covered item drawn against the insured's A covered item might be a check, draft, note, bill of or similar instrument.· . Theft means any act of Disappearance is unknown causes of loss. Disappearance lacks the elements of knowing if the crime was a theft, burglary or robbery .. Destfllction is the loss of certain property, it is usually the result of another cause of loss. Section (1) of the form covers money and securities against loss by theft, disappearance, or destruction inside the premises. Section (2) covers money and securities outside the in care and of a 47 PREFERRED GOVERNMENTAL INSURANCE TRUST "Preferred" NOTICE AND ACKNOWLEDGEMENT OF FINANCIAL CONDITION Brown & Browri of Florida, Inc. -Miami Division and its parent company, Brown & Brown, Inc. (collectively "Brown & Brown") do not certify, warrant or guarantee the financial soundness or stability of any insurance carrier or alternative risk transfer or pooling entity. We endeavored to place your coverage with an insurance carrier with an A.M. Best Company financial rating of "A-" or better. * While Brown & Brown cannot certify, warrant or guarantee the financial soundness or stability of any insurance carrier or alternative risk transfer or pooling entity or otherwise predict whether the financial condition of any such entity might improve or deteriorate, we are hereby providing you with notice and disclosure of financial condition so that you can make an informed decision regarding the placement of coverage. Accordingly, with receipt of this notice you acknowledge the following with regard to the placement and any subsequent renewal of the coverage indicated below: • Brown & Brown may have other options for your insurance placement, including quotations with insurance carriers holding an "A-" or better rating from A.M. Best Company. Alternative quotes may be available with an A-or better rated carrier upon your request. • Coverage is being placed through Preferred Governmental Insurance Trust ("Preferred"), which is as a Florida local government self-insurance fund established pursuant to Section 624.4622, Florida Statutes, as such Preferred is not rated by the A.M. Best Company. • Preferred is not subject to the protections afforded by any state guaranty fund or association. • The financial condition of insurance cOQJpanies and other coverage providers including local government self-insurance funds like Preferred may change rapidly and that such changes are beyond the control of Brown & Brown. .• You should review the financial and membership information from Preferred and agree to abide by the conditions of membership established by Preferred. • You should consider the information provided, including the Preferred coverage quote and coverage placement and review it with your accountants, legal counsel and advisors. By: [NAME OF AUTHORIZED REPRESENTATIVE OF INSURED] Named Insured: City of South Miami Policy Number: TBD Policy Period: 10/01117 TO 10/01118 Date of Notice: 8122/17 * A.M. Best Rating Guide: Rating for Stability: A++ to D ;:::; Highest to lowest rating Rating for Assetsl Surplus: 15 to 1 -Largest to smallest rating 48