7THE CITY OF PLEASANT LIVING
To:
FROM:
DATE:
SUBJECT:
Background:
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
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RESOLUTION NO. ____ _
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 2017/2018
Fiscal Year based upon the current 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 2017/2018
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 __ day of _____ , 2017.
ATTEST:
CITY CLERK
READ AND APPROVED AS TO FORM,
LANGUAGE, LEGALITY AND
EXECUTION THEREOF
CITY ATTORNEY
APPROVED:
MAYOR
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Welsh:
Commissioner Harris:
Commissioner Edmond:
Commissioner Liebman:
INSURANCE PROPOSAL SUBMITTED ESPECIALLY FOR:
CITY OF SOUTH MIAMI
POLICY TERM:
10/01117 TO 10/01118
DATE 0.11' 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 an 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 and
exclusions. '
2
ACCOUNT SERVICING TEAM
Robert Hollander
Executive Vice President
305-364-7818
rhollander@bbmia.com
Nancye Batista, AAI
Account Manager
305-364-7816
nbatista@bbmia.com
Alexandra Sarria
Claims Representative
305-364-7812
asarria1 @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
---~---------------------------------------------------------------------------------
I. 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. lllustrations and Definitions
4
SCHEDULE OF NAMED INSUREDS
City of South Miami
This list includes all of the named insured's we 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, If Needed.
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
Values Insured are Ultimately Chosen by the Client. In view of the continually
changing cost of construction and building materials, we strongly suggest that you
review your property values annually. ANY changes in the occupancy of an insured
location should be reported to our office immediately. Changes in occupancy can
potentially reduce or negate the coverage a.fforded by your property policy
Description of Coverages Proposed:
Policy Form:
Building & Personal Property Coverage Form -Special
Causes of Loss:
Special Form: Excluding EarthquakelEarth Movement
Coinsurance:
Building & Personal Property: NI A
Valuation:
Replacement Cost
Flood Limit:
Per Occurrence and Aggregate: $1,000,000
Excess of NFIP 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
$ 1,0001$5,000
$ 500,000
$ 250,000
$ 500,000
$ 55,000
$ 25,000
$10,0001$20,000
$ 25,000
$ 2,000,000
$25,000/$50,000
$25,0001$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 of NFIP, 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, light poles, 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:
• EarthquakelEarth 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 DEDUCTIBLE SAMPLE ILLUSTRATION
FLAT DEDUCTIBLE vs. PERCENTAGE Windstorm and Hail Deductible
This deductible would apply to a claim for damage caused by windstorm.
TOTALS:
Value -$10,000,000 $20,000 $200 $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
SCHEDULE OF COVERED PROPERTY
DI&rIpbIIn Yeill Built Elf. Il'af!e Bui~vaIue Unitil' TOtallmured Value
Jdfdress cmst'JYpe Term Dam COOterIts VilIue
ROOf 5I1i1pE! I Roof PIUII RIlOfCII'ft!f1IIII 1 COYeI1IIS III!ptaCI!G I ROOfYrBtt
CAA I1ead 5taJt Cl!IIter 1'110: 10101/'2017 $471,.21Jjj
OOt 6125 SW 611 Street $476,6IIi
$OUtII Miami, fL ]]143 10101/2018 S!>,<4!IIi
1U·JM
Flat , Law« 10) Built up roof w/out gravel, ,
PUbliI: Warks Office Building 'U8 1010112011 $281,211(
aoz 415 sw75th Awm.te $2811,518
soUth Miami, fL 33143 10101/'2018 $7.11l
11' -JM
Hip I Law 1< 10) ASphalt shingle 1 J
stIIJ'iI3e/NQtor POOl Office "'H 10101/'2017 $S4"l101
001 415 sw 75th AwnUl!: $M,DOI
$OUtII Miami, fL 33143 10,(01/'2018 Sl
131 -fA
Flat , Law{< 10) Built up roof wf.out grave1 ,
501.id Waste BId!l-5 EIiI.y Sbop l'i180 101011'2017 $1m;,l!i~
1104 415 sw75th Awnue $185,151:
$OUtIIMiamii, fL.33141 10/01/'2018 $ll
152 -HC
Shed I Law « 10) ASphalt SIliingle , I
City Gara!,e 1'iI" 10/01 1'2017 $560,511(
DOS .4Jt5 SW 75th Awnue $560,501
$ll soUth Miamf, fL ]31'11 101011'2018
111 -III1IC
Flat , Law « 10) ASphalt shingle , ,
City's Repair-Shop 17ft 10101/'2017 $UJ,OIJ(
006 415 sw 75th AWI'IlIe $122,26
soUth Miamf, fL 33143 10/01/'2018 $5'iI,1;6.
1U-JM
Flat I Law {< 10) steel· standing Sam j J
PlJliI:e ~ Illd'! 1'iI'H 10(01/'2017 $13,'111!1
00:7 415 SW75th Avenue $18,_
$OUtII Miami, fL 33141 t0/01/'2018 $(
11'-JM
Flat , Law « 10' Built up roof w/out gravel, , J
Dante 11_ FiISa!IL ParkJ Tennis Pm Shop Illtestmom Illd'! 1'iI67 10/01/'2017 $t5,1WI
008 8600 Aled Road $95,aBII
SOUth Miami, fL 331'11 1010112018 $ll
131 -fA
Flat , Law (< 10) Built up roof wfout gravell I
Dante II. fasceU PiIriI -:1 oazeIlas ,.,.S 1010112017 $6!i,0IJ(
1109 8600 Aled Road $65,000
SOUth Miamt, fL ]31'11 10(01/2018 S(
152-NC
Pyramid I Medium (10 to.lO) ASphalt shingle 1 1
Dante a.. fl1Sceil PiIriI-(;. HiIr Tru TI!nnis 0IUrtS ($6,!iDG
~ ............ ,---,,, ............... 1'iI1I5 10/01/2017 $123,!500
afO MOO Aled Road $12l,!iOO
$ll SOUthMiamii, fL33143 101.01/'2018
102· PITa
MIA , MIA MIA I ,
10
ll1it.
011
012
on
014
015
1116
1117
IllB
1119
020
SCHEDULE OF COVERED PROPERTY
Continued
Dmcr1pblln Year BIIIIt Eft. Date -111 value
Address Constl'Jpe TernI Dale ConteI1U Value
Raof ShapE! I RoofPitdt IUI01 Clm!n" I COYerint liIepIamII
Dante Ii. F~ Park I P~nd ($6,500 COO1:et\ts U75 10/Dt/2017 $104,00II __ L.J_~'!I;
II6IlIIII12d IIiOad
sootIb Miami, fl 13141
102-PITO
10/Dt/2013 SII
MIA I lilA lilA I
DlIIIte Ii. F~elIi Park -2 RacquetIJa1I courts U75 10/0112017 Sm,66!i
II6IlIIII12d IIiOad
sootIb 1.I.iami, fl. 13141 10/01/2013 $(
102 -PITO
MfA I HIA IfIA I
DlIIIteli. F~ Pilrk -1 8a!ketbaU court UlIO 10/0112017 $13,OIIC
II6IlIIII12d IIiOad
sootIb 1.I.iami, fl13141 10/01/2013 $(
102 -PITO
MIA I IfIA IfIA I
DlIIIte5. FiI5ltl!U -1 Tiki Hut "115 10/Dt/20U $10,00II
86IlII112d IIiOad
soothMlamt, fllll41 10/1>1I201B SII
11'J-JM
P)'r.tmid I MedilBl'l (10 toJO) Wood sbakes: I
nantes. FiI5lteIti CCII1I1mullity storage n67 1D/Dt/2017 $0,000
86IlII II2d IIiOad
sootIbMiami, fl 13141 101Dt/2013 $(
111 -fit
Flat I Law{< 10) Bllilt up rClOf with JfiI'Il!I. J
FIKbs Park pavilion ($4!i50 CootenlS 1nil:1uded) ln5 10/01/2017 $l1,OIIC
M4!i SW 81 Stn!et
sootIb Miami, fl31141 10/01/2013 $'I,m
1 Dt -Fr.m!JI!
Hip I Medium (10 to 30) Aspbalt sbiJJgte J
FIKbs PiII'k· Bathroom noll 10/Dt/2017 $fH,OIIC
M45 5lW 81 Street
$( sootIbMiami,flll141 10/Dt/2013
11't·JM
Flat I LOw{< 11}) light Metall'ilnels I
FIKbs PiII'k Playground a SWing sets In] 10/Dt/2017 $70,761 ,
M45 5lW 51 street
sootIb Miami, fl ]3141 10/Dt/2013 $(
102-PITO
MIA I HIA lilA I
Palmer park • Field sto1:iIp 51.1i1lmg i't77 10/Dtl2017 $45,!iOII
6445 SW 81 Street
sooth Miami, fl33141 10/Dt/2018 $(
In-Ne
Flat I LOw« 11}) Built up RIOf with gravel I
Palmer Park FDOtbaIl Storage Bldg U77 101Dt/2017 $75,000
t.701 5lW t.7tb AYl!n1J@
sootIbMlamt, fll3141
l1'··JItl.
10/Dt/2!H3 $45,730
Flat I LOw« 11}) Bllilt up raof with gravel I
11
TDtiIllnsmed Value
I RIIOI: Yr 5lt
$1(14,0IIII
I
$2J1,66!1
I
$13,001
I
$10,001
I
$61,001
1
$15,MI:
1
$84,001
I
$70,785
I
$45,!>OIJ
I
$120,7](
I
(mit.
07.1
022
023
024
025
07.6
027
0711
07.9
OlD
SCHEDULE OF COVERED PROPERTY
Continued
Descriptian Year Buill: E'ff_Date I Buildint V11Iue I
AII~ comtl'ype TemI oate CGntI!IItS V11Iue
ROOI!illape I RoQJPRaI RlIOIcovenllll I GWen", RepIaCeII
Palmer park fIKItbail storage RDOO1 17", 10/01{2017 $]3;,000
6701 SW 67th Avenue
sooth Miami, fL 33143 10101.12018 $17,500
117-JM
f1iII: I 1J:IItIr« 10) Built up roof with gravel I
Palmer park Field House 1777 1010112017 $115,621]
61011 SW 67th A'I'I!IIue
sooth .Miami, fL 33143 10/01/2.018 $7,14
117-.1'"
Hip I lJ:IItIr(o::lD) A..<pllalt sbinsU! I
Palmer park PIa~ 1777 1010112017 $26,000
6701 SW 67th A'I'I!I1ue
sooth Miami, fL 33143 10/01/2018 $~
lf1rl· PIiTO
MIA I MIA MIA I
Palmer park , 1200 ft 015 ft High fenCe 17711 10/0112017 $13.,OIlII
6701 SW 67th Avenue
sooth .Miami, fL 33143 1010112018 ~
1f1rl· PIiTO
MIA. I MIA MIA I
Palmer park -1000 ft Of 10 It Hi&h Fence ''Jo78 10/01/2017 $16,'JcIXI
6701 SW 67th Avenue
sooth .Miami, fL 33143 10101/201·8 $11
lf1rl-PIiTO
MIA I MIA MIA I
. Palmer park -Reruoom IIIdg ''Jo77 10101/2017 $84,600
6701 SW 67th Avenue
sooth Miami, fL UHl 1010112.018 ~
117-.1'"
Flat I 1J:IItIr{< 10) 8uilUIpmofwitll gravel I
Palmer park· clH1D?S5ion ~ U77 10/0112017 $S4,00!Il
6701 SW 67th AWlIlue
sooth Miami, fL 33143 10/01/2018 $~
l1'Jo-J/il
f1iII: I lJ:IItIr(o:: 10) Built up roof w/oot !JilVell
Brewer p;uk -2. Racquetball courts un 10/01.12.017 $2BI,66!i
63011SW 56th Street
sooth Miami, fL 33143 10101/2018 $(
11'Jo-J/il
f1iII: I IJ:IItIr {.:: 10) Built 'lip roof with gravel I
Brewer p;uk -112 IlilSltetIJaIl Court. UIIllI 10/0112017 $13.,000
63011 sw 56th S'tJ1!iet
sooth Miami, fL 33143 10'01/2018 $11
lf1rl-PIiTO
MfA I MIA MfA I
Brewer p;uk -plaftroimd and SWing set 1711111 1010112.017 $34,125
63011 SW 56th S'tJ1!iet
sooth Miami, FL 33143 10/0112.018 $11
102 -PIiTO
MIA I MIA MIA I
Ta«allllSlln!d valUe
I twQfYrBlt
$52,5011
I
$124,761
I
$26,OlII
I
$13,011(
I
$16,'JOD
I
$1I4,6IIJ
I
$54,OlII
I
$28,665
I
$13,0IIIl
I
$34,125
I
unit.
011
OJ!
O:J:J
OJ4
OD
036
037
038
039
04D
SCHEDULE OF COVERED PROPERTY
Continued
De:W1phIIn YIUII Ikilit EIf~ Date lluiklina value
Address OmtType Term Date CGnI.'erItt value
Raot:5hape I ROOf PItttI ROOt CIm!n"ll I CIm!n"IJ ReplaCed
BreWer Park -:21'l!1l11is OlUrts 1990 10/D1/'W17 $52,000
63tlIO SW 56tb street
south Miami, fLl1H] 101D1/2D111 $C
1m -PiTO
"fA I If/A MIA I
BreWer Park -<4IlO It of 10 It High Fente "90 10/D1l2D17 $7.-
6lOO sw ~thstreet
south Miami, fL :tl14l "l0/DU2D18 $~
1m -PiTO
"IA 1 If/A KIA I
BreWer Park -.360 ftof§ ftHigh Fence "90 to/D1/2D17 $3,1011
6300 sw ~th street
south Miami, fL :tl14l 10/D1J'W111 $~
1m -PiTO
KIA I If/A KIA I
NilllTay Part -:2 Shade Strutture5 11190 10/DIJ'W17 $2,000
5800 SW 6fi street
south l\IiamT, fLlll4l 10/D1/2DIlI $0
119 -JIo\
Ciable end Without lIrlIcillg I Law C< 10) Asphalt Shingle I
NiIIITay Park I community center 1985 10/D1/'W17 $360,000
670'1 SW 58 Plate
southl\liami, fL1114l 100D1/2Dll1 $C
111-MltC
P)'ramid I Medii.m (10 bI lO) Sf1!el-standing seam I
HIJ1IlI! Butler Activity C.enter 1'85 101D1/2D17 $271,6llll
670'1 SW 58 Place
south Miami, fL lll4l 10/D1J'W111 $~
11'·1101
P)'ramid 1 Medium (10bllOJ Sf1!el-standing seam I
otrlCeiPalice substa!:iion 1m 10101f'W17 $~
.§t75 sunset Dri'I'e
south l\Iiami, Fl 3114l 10/D1/2D18 $lZ,5OCI
119 -JIo\
Ciable end Without IIrlIcillg 1 Law Co: 10) Asphalt Shingle I
City Halt I Police 1'J~ lD/D1/'W17 $l,8D,lIIO
613OsunsetDri'I'e
south l\IiImli, fL lll4l 101D1/2D18 $B5,417
11'-JM
f1at I Law « 10) Built up RIIIf with pvel I
Silva Martin BtdjJ "15 10101/2D17 $42D,1OO
6130 sunset Dri'I'e
south Miami, Fllll4l 101D1/2D18 $!l6,7OIi
119 -1M
Hip I Medium (lObi 30) Aspftalt Shingle I
south Miami CllnmJ center" , Ilym 2DOl 10/D1J2D17 $3,2111,561]
58(10 SW 6fi Street
south Miami, Fllll4l lD/D1/'W1l1 $»0.000
111 -MIte
f1at I Law {< 10) BuiltupRlllfwithpvel I
13
TotallliSUlred Value
1 RoofVrlllt
$52,000
I
$7,.8011
I
$l,'iOII
I
$2,001
I
$3611,000
I
$771,,600
I
$12,5011
I
S4,35,m
I
$476,l1Bt1
I
$1,6OB,%II
I
urdu
041
042
043
044
045
046
047
CH8
049
050
SCHEDULE OF COVERED PROPERTY
Continued
De5atptllln Year-BuIlt Eft. Oil. Buiklilll'f.illue
AI:Idn!ss Term Date CDI1tlmI:S value
TlItiII fImIred value
comt"l)pe
ROO1511ape I IIIIIIf Plttfl RlliDT CIIYI!I1IlI I CIIYef'IIlg RpJaCeII I KDOT Yr Blt
Jean Willis Park I oa:zebo '''' 10/0112017 $1',!iOO
12m SW 61stCClurt $17,!ilXl
SOUth Miami, FL 331<43 10/01120111 $0
101 -Frame
Pyramid I Medium (10 to 30) ASpha[t:Sl1~ I I
h\aIIlIsaIl WiUimison Park I ClIiIZ.ebt> 1'J'J1 10101/2017 $65,00II
6121 SW6ll stn!et $65,00II
SOUth Miami, FL 331<4] 10/1)1120111 $11
152-NC
Pyramid I Medium (10 to lQ) ASphalt~ k I
r.\afiha[ williamS<lll Park I Play&fmmd ;and :swing set '''' 10/01/2017 $32,!iOO
UH SW6ll street $l2.,5QII
SOUth Miami, FL 331<43 10/01/21)111 $II
102 -PITO
NIA I NIA NfA. I I
MiI.I'Shall WiUiamson Park -2 Tennis Courts '''' 1011)1/2017 $5:1,00II
6121 SW 611 Street $52,_
SOUth Miami, FL 331<43 10/01/20111 $€
102-PlrO
NfA I MfA IIfA I I
Girt SCout Property "65 10J01/21)17 $2:H,06O
66Il'J SW 60: stmet $234,060
SOUth Miami, FL 3l1<43 10'01/20111 $0
11' -JM
Hip 1 Medium (10 to lQ) ASpbalt~ I 1
Paoong !lara!iI!' 2000 10lO112017 $lI.415,m
582., s. W. 73 Street ss,415,m
SOUth Miamf, FL 131<43 10/01J2I)111 $0
111 -fA
Flat I Law « 10) Ci:InI:I1!te Tile I I
!limn part· 0iIZ.eIxI 1'192 10101/2017 $'2.5,00II
SW §8Ih .Ave II; SW lID St $25,_
SOUth Miami, FL 331<43 10/01120111 $0
152 -IIC
Pyramid I Medium (10 to lQ) ASphalt~ I I
POIim SUb station "lID 101-01/2017 $II
ti7'1.6 SW !it I'tace $26,00II
SOUth Miami, FL 331<43 10101120111 $26,00II
11'· 1M
Flat I Law « 10) ASpbillt:Sl1~ I I
IIIUS Shelter 1'192 1011)112017 $50,_
N Side of Sunset Dr lit $!>G,DOII
Approx SW 60: Ave 1D/01/20111 $II
152 -IIC
Flat I Law « 10) Li&ht Me!all Panels I I
IIIUS SIleiter 1992 10101121)17 $50,00II
N Side of Slinset Dr &. $!>G,OOII
Af1prox 100ft w of SW til AW 10/01/20111 $0
" .... L, "";: :. -...... -152-MC
Flat I Law (0:: 10) Li&ht Me!all PiInI!4s I I
14
--
OIitf'
051
052
053
054
II!>§
056
SCHEDULE OF COVERED PROPERTY
Continued
DesalptMln VI!lIII'BuiIt Eff. Date BuiIClinl value
Address ~ Temt_ C!Intents, Vi!iIue comtTJpe
_~ape I Rooll'Itttl ROOtCOW!f1"11 J COYeri"ll Replaced
fJils,Sheiter ,", 10/01/2017 $00,000
S $ide of sunset Dr a
AppI'DX ~DO!t E ofSW 67 Ave IDlOt/2flIl1 $lI
152 -HIC
F1at I Low« 10) light Metal PlInI!Is I
fJils,She!ter 1'1'1% 10/01J2f)J7 sro,ooo
S $ide of sunset or a
S Miami city Hall Site (6130) 10/01 ,2flll1 $~
157· HIC
F1at I Low« 111. Ligbt Metal PlInI!Is I
fJils,Sheiter f'll'l7 10fOll2f)J7 $!i1I,OOIi
Es:iclieof~62Awa
Approx~~st 10fOll2f)J1I $lI
157· HIC
F1at I Low « 111) Ligbt ~l PlInI!Is I
MUrray l'arfll'oDl, Splash Pool, Rernoom 2fl14 1D1·01/2f)J7 $1.llK.4n
612' SW 68th street
SClUtIIl.Iiamf, FL 33143 1D101/2f)J1I $0
11'-1M
F1at I Low « 111) Built up roof with ~ I
wood Double Gale Enclosure 2fll!i tOf01/2f)J7 $4,.f1!i
6l8O SW 'l!II Street
SClUtIIl.Iiamf. FL )]141 10J01/2f)J8 $0
1112-PITO
I 1
police fIJe\ing S'talioo 2fIDl lD101/2f)J7 $160,!iOO
6130 5umet IlrWe
SClUth l.Iiami·, FL lll43 lD101l2fl111 $10,1&4
11'1· 1M
I j
TlJtaIUtsured VilIIue
1 RIJOtYrBit
$510,00II
I
$5iIJ,00II
I
$5iIJ,OOII
I
$1,384,411
I
$4,.f1!i
I
$t71,4G!
1 l Tota1=l $111,701,760 I $1,062,581 I SU:, 763,&41
15
PROPOSED INLAND MARINE COVERAGE
Insurer: Preferred Governmental Insurance Trust
Description of Property:
Parking Meter Equipment -Blanket 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
EarthquakelEarth 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 against of money, or property
computer to transfer covered property from the insured prennses 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
I. Lessees of Safe Deposit Boxes
. J. Securities Deposited with Others
Deductibles:
17
PROPOSED GENERAL LIABILITY COVERAGE
Insurer: Preferred Governmental Insurance Trust
Type of Form:
Commercial General Liability -Occurrence Form
Limits of Liability:
Bodily Injury & Property Damage Liability
gate
Products/Completed Operations
Personal Injury & Advertising
Property Damage
Higher Liability Limits may be Available 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 LAW ENFORCEMENT LIABILITY COVERAGE
Insurer: Preferred Governmental Insurance Trust
Type of Form:
Occurrence
Limits of Liability:
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:
ve
Physical Damage Coverage Provided For:
*All 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
VEHICLE SCHEDULE
Continued
25
VEHICLE SCHEDULE
Continued
26
VEHICLE SCHEDULE
Continued
27
VEHICLE SCHEDULE
Continued
28
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:
Each Claim
Defense Costs are Within Limit of Liability -Capped at $1,000,000
Deductible:
$75,000 Public Officials Liability -Public Entity Liability -1 A2 and IB
$100,000 Each Employment Practices Violation -1C
$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
PROPOSED WORKERS' COMPENSATION COVERAGE
Classifications & Exposures:
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 Liability
Automobile
Inland Marine
CrimelFidelity
. Law Enforcement Liability
Public Officials
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
Employment Practices Liability Fees
Taxes/Surcharges
Total
Workers Compensation
Subject to Audit
Premium
Fees
Taxes/Surcharges
Total
annualized premiums on any mi,dterm
Fees shown above may be fully earned at policy
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
POLIEPL: 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 Form
• 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 policylcontract. 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
j~U:~~~r:M:;>J~~I:! ~l!il~tl~I~~~tl:li:~
Preferred Governmental Insurance
Trust
Commercial Property, Crime,
Inland Marine, General
Liability, Law Enforcement
Liability, Commercial
Automobile, and Workers
Com ensation
Not Rated Yes
Ace American Insurance Co. Public OfficiallEPL A++XV Yes
GENERAL RATING
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 Cate~ory is an indication of the size of an Insurer and is based on reported
Policyholders' surplus p us conditional or Technical Reserve Funds, such as mandatory securities
valuation reserve, other investment and operating contingency funds andlor miscellaneous voluntary
reserves reported as liabilities.
($ ill thousands)
Class I $ Up to $ 1,000
Class II $ 1,000 To $ 2,000
Class III $ 2,000 To $ 5,000
Class N $ 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
VIII
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
XIII
Class $ 1,500,000 To $ 2,000,000
XN
Class XV $ 2,000,000 To $ More
This information has been provided to you so that consideration is given to the financial condition of our
proposed carriers. The financial information disclosed is the most recent available to Brown and Brown of
Florida 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 intermediaries, 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 / 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'slManaging 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.com/customerinquiry .shtml.
34
PROPOSAL VARIANCE
Changes that need to be made prior to binding:
35
MINIMUM AND DEPOSIT PREMIUM
MINIMUM EARNED PREMIUM
The following terms 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 determined 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 any and all incidents immediately after they occur, whether
it be an auto accident, a theft, slip & fall, 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 have 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 a Joss occurs, and it is
detennined 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
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 . to one-of-a-kind orcmertv
Property can be valued several different ways. Insurance companies commonly
use two approaches to determine 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 like kind. Actual cash value is replacement cost, minus the
accumulated for and condition.
An insured can insure a building for its full value at the beginning 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
fonn, the policy has a coverage extensions section and an additional coverages
section. The coverage extensions section provides limited coverage for newly
acquired or constructed property, property of others, certain out· door property,
and the cost of research and reconstruct infonnation on destroyed records. When
coverage is placed on the all risk fonn, 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, windstonn or hail, smoke that causes sudden and
accidental loss or damage, aircraft or vehicles, riot or civil commotion, vandalism,
sink hole and volcanic action.
Fire, lightning, explosion, windstonn or hail, smoke that causes sudden and
accidental loss or damage, aircraft or vehicles, riot or civil cOllll1)otion, vandalism,
sprinkler leakage, sink hole collapse, volcanic action, glass breakage, falling
objects, weight of snow, ice, or sleet, and water damage (accidental discharge or
39
EQUIPMENT BREAKDOWN DEFINITIONS
insurance covers direct damage to
covered property when caused by a covered cause of 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 & machinery equipment or any part of the
described in the .
Which pays the reasonable extra cost incurred to expedite
nrncrrp,,,, after a loss
Covers accidents to objects at newly
to after the named insured
40
GENERAL LIABILITY DEFINITIONS
Coverage is provided for damages arising out of ownership or
occupancy of the insured premises when maintained in a
reasonable manner. This also covers damages arising out of
the insured business.
Products coverage is 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 intended
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 a room. Coverage for libel and slander is also
. 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, products or
services.
Medical Payments coverage pays medical expenses resulting
from bodily injury caused by an accident on premises owned
or rented by the insured, 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 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
. or alcoholic n"","pr",
Intended for firms, which perform work or services, rather than sell
or produce products. Usually intended for construction
contractors, . of automobiles, installers of .".rr,.".prh,
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 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.
Amends definition of occurrence to; includes any intentional act by
or at the direction of the insured, which results in bodily injury, but
only if such bodily injury results from the use of "reasonable"
force for of or nrr,nprtu
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 and 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 under 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 standard 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 and Partners, 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 are usually considered outside the 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 non-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
The 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.
Covers the liability for the use of non-owned automobiles in your
business. An example would be an employee using his own car on an
errand for
Pays for loss of or damage to automobiles from perils other than
collision.
Pays for loss of or damage to automobiles from collision with another
or
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 to a
daily limit of $10 and a maximum limit of $300. Payments begin
forty-eight hours after the theft and ends when 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
insurers.
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 . be'
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 a compulsory
uninsured motorists law. Only those
"autos" you own that because of the 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. Only those autos
you lease, hire, rent or borrow. This
does not include any "auto" you lease,
hire, rent or borrow from any of your
employees or partners or members of
their households.
Non-Owned "Autos" Only. Only those
"autos" you do not own, lease, hire, rent
or borrow that are used in connection
with your business. This 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 a criminal 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
dishonest 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
accounts. A covered item might be a check, draft,
bill of or similar instrument.
Disappearance is unknown causes of loss. Disappearance
lacks the elements of knowing if the crime was a theft,
burglary or robbery.
Destruction is the loss of certain property, it is usually the
result of another cause of loss.
(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 I~SURANCE TRUST
~'Preferred"
NOTICE AND ACKNOWLEDGEMENT OF FINANCIAL
CONDITION
Brown & Brown 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 AM. 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 AM. 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 AM. Best Company.
• Preferred is not subject to the protections afforded by any state guaranty fund or association.
• The financial condition of insurance companies 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: 10/01/17 TO 10/01/18
Date of Notice: 8/22/17
* A.M. Best Rating Guide: Rating for Stability: A++ to D = Highest to lowest rating
Rating for Assets/ Surplus: 15 to 1 -Largest to smallest rating
48