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HomeMy WebLinkAboutContractExcess Liability, Workers’ Compensation, Pollution, Airport Liability and Unmanned Aircraft Renewal Proposal January 1, 2021 – 2022 v2 Presented on December 7, 2020 by: Brian White, First Vice President Anne Shackelford, Vice President Deborah Bovee, Senior Vice President Alliant Insurance Services, Inc. 1420 Fifth Avenue, Suite 1500 Seattle, WA 98101 O 206 204 9100 F 206 204 9205 CA License No. 0C3686 www.alliant.comCity of Renton CAG-20-494 Date Issued: 12/07/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 2City of Renton | 2021-2022 Liability Renewal Proposal Table of Contents Your Service Team ..................................................................................................................................................................................................................... 3Liability Insurance Market Update: December, 2020 ................................................................................................................................................................. 4Casualty Insurance Program Structure: Expiring & Renewal ..................................................................................................................................................... 6Line of Coverage – General Liability Program - $25,000,000 ..................................................................................................................................................... 7Line of Coverage - Excess Workers’ Compensation and Employers Liability-2 Year .............................................................................................................. 10Line of Coverage - Airport Liability/War, Hi-Jacking & Other Perils/TRIA ................................................................................................................................ 12Line of Coverage - Storage Tank Pollution Liability .................................................................................................................................................................. 15Line of Coverage – Unmanned Aircraft Insurance .................................................................................................................................................................... 17Premium History ........................................................................................................................................................................................................................ 20Disclosures ................................................................................................................................................................................................................................ 21NY Regulation 194 ............................................................................................................................................................................................................. 22FATCA: ............................................................................................................................................................................................................................... 22Claims Reporting: .............................................................................................................................................................................................................. 22Claims Made Policy: ......................................................................................................................................................................................................... 22NRRA: ................................................................................................................................................................................................................................ 23Changes and Developments ............................................................................................................................................................................................. 23Certificates / Evidence of Insurance ................................................................................................................................................................................. 24Flood Offering ............................................................................................................................................................................................................................ 25Request to Bind Coverage ........................................................................................................................................................................................................ 26 Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 3City of Renton | 2021 – 2022 Liability Insurance Proposal Your Service Team Brian White First Vice President bwhite@alliant.com Phone: 206-204-9126 Cell: 415-203-5983 Anne ShackelfordVice President anne.shackelford@alliant.comPhone: 206-454-8021Cell: 425-231-4714 Jamie Arnoldi Account Manager Jamie.Arnoldi@alliant.com Phone: 949-627-7000 Debbie Bovee, CPCU, ARM-P Senior Vice President dbovee@alliant.com Phone: 206-204-9173 Cell: 206-276-7418 Vicki Holaday, CRM, CIC, APA, AU Assistant Vice President / Account Executive vholaday@alliant.com Phone: 206-204-9138 Renee Judge, AAI, AIS Assistant Vice President / Account Executive rjudge@alliant.com Phone: 206-204-9174 Joyce Roberts Account Manager jeroberts@alliant.com Phone: 206-204-9175 Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 4City of Renton | 2021 – 2022 Liability Insurance Proposal Liability Insurance Market Update: December, 2020 The Casualty insurance market is undergoing a significant realignment in terms of available capacity, underwriters’ appetite, and pricing adequacy. The Public Sector, in particular, is experiencing this in an acute way. The core issues impacting this market shift are as follows: x Alarming increase in the frequency and severity of large claims. Suggested variables impacting severity of loss: o Defendant Mistrust: Plaintiff counsel are arguing that public entities are putting budgetary considerations over citizen safety; o Litigation Financing: There is a growing trend for third parties to finance plaintiffs’ lawsuits, underwrite expensive experts, etc., making it easier for plaintiff’s to “hang in there” to the end; o Social Inflation / Corporate / Public Sector “Deep Pockets”: Where the news of large verdicts travel via regular and social media which may influence what a jury’s notion of what a reasonable verdict might be; o “Anchoring” or setting the bar: where the plaintiff’s lawyer argues for $20 million and the jury might award $10M to split the difference, regardless of what the facts call for. x Washington State Venue – very limited tort protections/immunities: o Joint & Several Liability x Market withdrawal / Capacity Reductions over the last several years from key markets, accelerating more recently x Insurers content that prior to 2019 Excess pricing been stagnant over many years, but has also not kept pace with the realities of an increased frequency in severe claims. x Social environment around Law Enforcement activities It is unclear how long this environment will continue. Much of that will depend on underwriting performance over the coming year(s) relative to the Public Sector’s own loss experience and the insurers’ overall performance. Development within insurers’ historical claims will play a key role, given many losses in recent years have not yet resolved themselves, as will whether enough new entrants to the market will materialize and create additional capacity to offset the current constraints. Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 5City of Renton | 2021 – 2022 Liability Insurance Proposal Workers’ Compensation x The Excess Workers’ Compensation market is beginning to see its own challenges emerge. x The Safety National Excess Workers’ Compensation policy is renewing on January 1st in year 2 of a 2-year policy term. x Safety required a +5% rate increase effective January 1, 2020 but we negotiated to receive this increase incrementally over 2 years. 2020-2021 Rate per Worker Hours .052105/hour (+2.5% from 19-20 rate) 2021-2022 Rate per Worker Hours .05338/hour (+2.5% from 19-20 rate) x 2020 Worker Hours were pulled forward for the 2nd year: 1,218,000 x Final premiums will be subject to voluntary audit of actual worker hours for the 2020-2021 term, and the following 2021-2022 term. Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 6City of Renton | 2021 – 2022 Liability Insurance Proposal Casualty Insurance Program Structure: Expiring & Renewal $25M $25M$20M $20M$15M$5M $5M$2M $2M$250K $250K*Except Auto, which is outside Aggregate *Except Auto, which is outside AggregateTotal: $393,687Self Insured Retention (SIR)$250,000 Per OccurrenceSNAuto$2MSN Public Officials / Empl. Practices$2M/$2MSNGen. Liab. $2M/$4MSNLaw Enforce m e nt Prof. $2MHallmark$5M X 15M($5M per Occurrence / $5M Aggregate*)AWAC$5M X 20M($5M per Occurrence / $5M Aggregate*)Safety National (SN)$3M X $2M($3M per Occurrence / $3M Aggregate*)Hallmark$5M X 20M($5M per Occurrence / $5M Aggregate*)ExpiringLiability PlacementEffective 1/1/20(Not to Scale)Proposed RenewalLiability PlacementEffective 1/1/21(Not to Scale)AWAC$10M X $5M($10M per Occurrence / $10M Aggregate*)Total: $303,417Self Insured Retention (SIR)$250,000 Per OccurrenceMarkel AWAC$15M p/o $20M XS $5M$5M p/o $20M XS $5MSNAuto$2MSN Public Officials / Empl. Practices$2M/$2MSNGen. Liab. $2M/$4MSNLaw Enforcement Prof. $2MSafety National (SN)$3M X $2M($3M per Occurrence / $3M Aggregate*)($15M per Occurrence / $15M Aggregate*) Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 7City of Renton | 2021 – 2022 Liability Insurance Proposal Line of Coverage – General Liability Program - $25,000,000 EXPIRING COVERAGE 2020-2021 RENEWAL COVERAGE 2021-2022 INSURANCE COMPANY: Safety National / Allied World / Evanston / Hallmark Safety National / Allied World / Hallmark A.M. BEST RATING: Safety National – A+ (Superior), Financial Size Category XV ($2 Billion or greater), as of 10/3/19 Allied World – A (Excellent), Financial Size Category XV ($2 Billion or greater), as of 2/15/19 Evanston Insurance – A (Excellent), XV ($2 Billion or greater) as of 12/19/18 Hallmark – A- (Excellent), IX ($250 Million to $500 Million) as of 8/27/19 Safety National – A++ (Superior), Financial Size Category XV ($2 Billion or greater), as of 11/11/20 Allied World – A (Excellent), Financial Size Category XV ($2 Billion or greater), as of 2/28/20 Hallmark – A- (Excellent), VIII ($100 Million to $250 Million) as of 10/16/2020 STANDARD & POOR’S RATING: Safety National – A+, pulled 11/26/19 Allied World – A-, pulled 11/26/19 Evanston Insurance – A, pulled 11/26/19 Hallmark – Not Rated Safety National – A+, pulled 11/20/20 Allied World – A-, pulled 11/20/20 Hallmark – Not Rated STATE COVERED STATUS: Admitted / Non-Admitted / / Non-Admitted / Non-Admitted Admitted / Non-Admitted / Non-Admitted / Non-Admitted POLICY / COVERAGE TERM:January 1, 2020 to January 1, 2021 January 1, 2021 to January 1, 2022 Occurrence Form-Including: Auto Liability, General Liability, Law Enforcement Liability, Public Officials Liability, Employment Practices Liability, Employee Benefits Liability and Stop Gap Liability Excess Liabilities: $25,000,000 Each Occurrence/Wrongful Act/ Accident Excess Liabilities: $25,000,000 Each Occurrence/Wrongful Act/ Accident Exclusions (including but not limited to): Communicable Disease/Infectious Agents Not Excluded Excluded at $10M x $5M AWAC Layer and upwards Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS) Not Excluded Excluded at $5M x $15M Hallmark Layer and upwards Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 8City of Renton | 2021 – 2022 Liability Insurance Proposal EXPIRING COVERAGE 2020-2021 RENEWAL COVERAGE 2021-2022 Failure to Supply Water Not Excluded Not Excluded Subsidence Not Excluded Not Excluded Loss Prevention / Risk Management Subsidy $10,000 $10,000Subsidence Not Excluded Not Excluded Total Pollution Exclusion except for Hostile Fire Exception 9 9 Nuclear Energy Liability Excluded Excluded Fungi/Bacteria/Silica/Asbestos/Lead Excluded Excluded ERISA Coverage Excluded Excluded Amended Definition of Bodily Injury 9 9 Unintentional Failure to Disclose Haz or Occ9 9 Co-Employee Exclusion Carveback 9 9 Injury to Volunteer Firefighters Excluded Excluded Waiver of Premium Audit Condition 9 9 Medical Expense Coverage Excluded Excluded Other Terms/Conditions: Modified SIR – Periodic Claim Reporting Quarterly Reporting Requirement Quarterly Reporting Requirement Broadened Named Insured 9 9 Includes Care, Custody or Control of the “autos” of others the insured is providing maintenance or repair services to9 9 Flat Annual Premium – Non-Audit 9 9 90 Day Notice of Cancellation; except 10 Days for Non-Payment9 9 Unmanned Aircraft Exception to Aircraft Exclusion Drones are not covered Drones are not covered Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 9City of Renton | 2021 – 2022 Liability Insurance Proposal EXPIRING COVERAGE 2020-2021 RENEWAL COVERAGE 2021-2022 Blanket Primary/Non-Contributory Endorsement when required by written contract 9 9 Blanket Waiver of Subrogation 9 9 Limited Pollution: Pesticide/Herbicide & Water Treatment/Purification Not Included New Enhancement Endorsement Clash Coverage Not Included New Enhancement Endorsement Incidental Medical Malpractice (Paramedic/EMTs) Not Included New Enhancement Endorsement Defense Costs Inside the Limit / Inside the SIR Inside the Limit / Inside the SIR Self-Insured Retention All Coverages, Any One Occurrence or Wrongful Act $250,000 Self-Insured Retention $250,000 Self-Insured Retention Total Program Premium $303,417 $393,687 (+31%)* Binding Conditions: No Longer Applicable x Signed Bind Request – See Page 25 x All Surplus Lines Taxes/Fees are Fully Earned x *Includes Surplus Lines Taxes and Fees where applicable Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 10City of Renton | 2021-2022 Liability Renewal Proposal Line of Coverage - Excess Workers’ Compensation and Employers Liability-2 Year EXPIRING COVERAGE Two Year Policy RENEWAL COVERAGE Two Year Policy INSURANCE COMPANY: Safety National Casualty Corporation Safety National Casualty CorporationA.M. BEST RATING: A+ (Superior), Financial Size Category XV ($2 Billion or greater), 10/3/19A++ (Superior), Financial Size Category XV ($2 Billion or greater), 11/11/20STANDARD & POOR’S RATING: A+, pulled 11/16/19 A+, pulled 12/3/20 STATE COVERED STATUS: Admitted Admitted POLICY / COVERAGE TERM: January 1, 2020 to January 1, 2022 (1st Year) January 1, 2021 to January 1, 2022 (2nd Year)Coverage Form: Excess Workers’ Compensation and Employers Liability Excess Workers’ Compensation and Employers Liability Limit: Workers’ Compensation Statutory Statutory Employers Liability $1,000,000 $1,000,000 Self-Insured Retention: $500,000 $500,000 Cancellation: 90 Days 90 Days Endorsements and Exclusions: (including but not limited to) Voluntary Compensation Yes Yes Foreign Voluntary Endorsement Yes Yes Aircraft Exclusion No NoMaritime/Jones Act - No Known Exposure Yes Yes Incidental USL&H Yes Yes FELA (Limited) No NoBlanket Waiver of Subrogation – As required by written contracts Yes Yes TRIA Included Included Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 11City of Renton | 2021-2022 Liability Renewal Proposal EXPIRING COVERAGE Two Year Policy RENEWAL COVERAGE Two Year Policy Communicable Disease Endorsement No No 90 Day Notice of Cancellation Yes Yes Broad Form All States Yes Yes Crisis Protection and International Extraction Benefit $50,000 Annual Aggregate $50,000 Annual Aggregate Estimated Annual Man-hours: 1,218,000 1,218,000 (+0.00%) Net Rate Per Man-hour: .0521 .05338* Estimated Net Annual Premium / Net Annual Deposit Premium: $63,464 $65,017 Policy Period Net Minimum Premium: $115,633 for the two year policy term $115,633 for the two year policy term Policy Auditable: Yes, subject to actual worker hours Yes, subject to actual worker hours Binding Conditions: x Signed Bind Request – See Page 25 *Note – Safety National is applying a 2.5% increase for 2021-2022 as agreed to for the 2020-2021 renewal See Disclaimer Page for Important Notices and Acknowledgement Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 12City of Renton | 2021-2022 Liability Renewal Proposal Line of Coverage - Airport Liability/War, Hi-Jacking & Other Perils/TRIA EXPIRING COVERAGE 2020-2021 RENEWAL COVERAGE 2021-2022 INSURANCE COMPANY: National Union Fire Insurance Co National Union Fire Insurance Co A.M. BEST RATING: A (Excellent), Financial Size Category XV ($2 Billion or greater), as of 7/12/19 A (Excellent), Financial Size Category XV ($2 Billion or greater), as of 8/19/2020 STANDARD & POOR’S RATING: A+, pulled 7/25/19 A+, pulled 10/27/20 STATE COVERED STATUS: Admitted Admitted POLICY / COVERAGE TERM: January 1, 2020 to January 1, 2021 January 1, 2021 to January 1, 2022 Coverage Form: Airport Liability Airport Liability Scheduled Airports: Renton Municipal Airport Renton Municipal Airport Limits: Products/Completed Operations – Each Occurrence and Aggregate $ 100,000,000 $ 100,000,000 Personal & Advertising Injury Aggregate $ 25,000,000 $ 25,000,000 Each Occurrence – BI & PD $ 100,000,000 $ 100,000,000 Fire Damage (Any One Fire) $ 500,000 $ 500,000 Medical Expense (Any One Person) $ 5,000 $ 5,000 Hangarkeepers (Any One Occurrence) $ 100,000,000 $ 100,000,000 Hangarkeepers (Any One Aircraft) $ 100,000,000 $ 100,000,000 Non-Owned Aircraft Liability $ 100,000,000 $ 100,000,000 Garagekeepers Liability (Any One Auto/Any One Loss) $ 150,000/$250,000 $ 150,000/$250,000 Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 13City of Renton | 2021-2022 Liability Renewal Proposal Line of Coverage – Airport Liability/War, Hi-Jacking & Other Perils./TRIA (Cont’d) EXPIRING COVERAGE 2020-2021 RENEWAL COVERAGE 2021-2022 Extended Coverage – War, Hi-Jacking and Other Perils Aggregate $ 100,000,000 $ 100,000,000 TRIA $ 5,000,000 $ 5,000,000 Cargo Liability $ 5,000,000 $25,000 Deductible Each Claim $ 5,000,000 $25,000 Deductible Each Claim National Incident Management System/ National Response Plan NIMS Agreement Endorsement (Including Off Airport): Each Occurrence $ 50,000,000 $ 50,000,000 Damage to Premises Rented to You $ 500,000 $ 250,000 Medical Expense $ 5,000 $ 5,000 Personal & Advertising Injury Aggregate $ 50,000,000 $ 50,000,000 Products/Completed Operations Aggregate $ 50,000,000 $ 50,000,000 Hangarkeepers Not Covered Not Covered Crisis Response Coverage Extension Crisis Response Aggregate Limit Not Covered Not Covered Each “Crisis Response Costs” Limit Not Covered Not Covered Each “Crisis Management Loss” Limit Not Covered Not Covered No Claims Bonus Not Applicable Not Applicable Notice of Cancellation 120 Days/10 Days for Non-Payment of Premium 120 Days/10 Days for Non-Payment of Premium Amendment of Noise & Pollution and Other Perils Exclusion Yes Yes Immunity Waiver Endorsement Yes Yes Date Recognition Exclusion Yes Yes Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 14City of Renton | 2021-2022 Liability Renewal Proposal Line of Coverage – Airport Liability/War, Hi-Jacking & Other Perils./TRIA (Cont’d) EXPIRING COVERAGE 2020-2021 RENEWAL COVERAGE 2021-2022 Date Recognition Limited Coverage Yes Yes Nuclear Risks Exclusion Yes Yes Mutual Aid Agreement Endorsement Yes Yes Employee Benefits Liability $1,000,000 Each Employee and Annual Aggregate $1,000,000 Each Employee and Annual Aggregate Deductibles: Each Occurrence or Offense/Annual Aggregate NIL Physical Damage to Non-Owned Aircraft: $5,000 Piston/$10,000 Turbine Engine Hangarkeeper’s Liability $5,000/Aircraft $5,000 Piston/$10,000 Turbine Premium: Airport Liability $ 16,552.00 $ 18,207.00 War, Hi-Jacking & Other Perils/TRIA $ 5,218.00 $ 5,802.00 Total $ 21,770.00 $ 24,009.00 (+10.28%) Binding Conditions: x Signed Bind Request – See Page 26 x Signed TRIA Disclosure Notice rejecting Standalone Terrorism. Notes: (1) Please indicate TRIA/WAR desirability. Deductibles added Coverage A: PD to Aircraft: $5,000 piston/$10,000 turbine and Coverage D: $5,000 piston/$10,000 turbine. Excess EL and Auto reduced to $5M (Insured has option to buy back $1,500 each to buy up to 10M and $3,500 each to buy back to $25M). See Disclaimer Page for Important Notices and Acknowledgement Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 15City of Renton | 2021-2022 Liability Renewal Proposal Line of Coverage - Storage Tank Pollution Liability EXPIRING COVERAGE 2020-2021 RENEWAL COVERAGE 2021-2022 INSURANCE COMPANY: Great American E&S Insurance Company Great American E&S Insurance Company A.M. BEST RATING: A+ (Superior), Financial Size Category XV ($2.00 Billion or greater), as of 6/30/19 A+ (Superior), Financial Size Category XV ($2.00 Billion or greater), as of 10/28/2020 STANDARD & POOR’S RATING: A+, pulled 9/16/19 A+, pulled 12/3/2020 STATE COVERED STATUS: Non-Admitted Non-Admitted POLICY / COVERAGE TERM: January 1, 2020 to January 1, 2021 January 1, 2021 to January 1, 2022 Coverage Form: Pollution Liability Coverage Form (Designated Sites) Pollution Liability Coverage Form (Designated Sites) Limit: Per Environmental Incident / Aggregate $1,000,000 $1,000,000 Defense – Per Environmental Incident $500,000 $500,000 Terms and Conditions: (including but not limited to) Limits by Location Yes Yes Repair or Replace Yes Yes Known Contamination Exclusion Yes Yes Designated Sites: 3555 NE 2nd Street Renton, WA 98056 Two underground storage tanks Two underground storage tanks 4000 Maple Valley Highway Renton, WA 98058 One underground storage tank One underground storage tank Retroactive Date: 1/1/2011 1/1/2011 Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 16City of Renton | 2021-2022 Liability Renewal Proposal Line of Coverage – Storage Tank Pollution Liability (Cont’d) EXPIRING COVERAGE 2020-2021 RENEWAL COVERAGE 2021-2022 Deductibles: Per Environmental Incident $2,500 $2,500 NET Premium: Policy Fee: TOTAL PREMIUM: $2,182.08 $ 150.00 $2,332.08 $2,289.38 $ 150.00 $2,439.38(1) (+4.6%) Binding Conditions: x Signed Bind Request – See Page 25 (1) Premiums are increasing each year due to aging of tanks. See Disclaimer Page for Important Notices and Acknowledgement Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 17City of Renton | 2021-2022 Liability Renewal Proposal Line of Coverage – Unmanned Aircraft Insurance EXPIRING COVERAGE 2020-2021 RENEWAL COVERAGE 2021-2022 INSURANCE COMPANY: National Union Fire Insurance Company of Pittsburgh, PA National Union Fire Insurance Company of Pittsburgh, PA A.M. BEST RATING: A (Excellent), Financial Size Category XV ($2 Billion or greater), as of 7/12/19 A (Excellent), Financial Size Category XV ($2 Billion or greater), as of 8/19/20 STANDARD & POOR’S RATING: A+, pulled 7/25/19 A+, pulled 12/3/20 STATE COVERED STATUS: Admitted Admitted POLICY / COVERAGE TERM:January 1, 2020 to January 1, 2021 January 1, 2021 to January 1, 2022 Coverage Form: Unmanned Aircraft Insurance Unmanned Aircraft Insurance Scheduled Aircraft 23 UAVs under 11 lbs 1 UAV 11-21 lbs 31 UAVs under 11 lbs 1 UAV 11-21 lbs Limits: Single Limit Each Occurrence – BI & PD $1,000,000 $1,000,000 Medical Expense (Any One Person) $5,000 $5,000 Non-Owned Aircraft Liability Not Covered Not Covered Owned Aircraft Physical Damage Not Covered Not Covered War** Excluded Excluded TRIA Included Included Deductibles: Each Occurrence or Offense NIL NIL Annual Aggregate NIL NIL Covered Aircraft: Any Unmanned Aircraft owned and operated by the Named Insured weighing less than 55 lbs. Any Unmanned Aircraft owned and operated by the Named Insured weighing less than 55 lbs. Purpose and Use Endorsement: As required by the Named Insured As required by the Named Insured Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 18City of Renton | 2021-2022 Liability Renewal Proposal EXPIRING COVERAGE 2020-2021 RENEWAL COVERAGE 2021-2022 Pilot/Operator Warranty: Any Operator approved by the named Insured, provided such individuals are under the direct supervision of a properly certificated and rated pilot-in-command who is accompanied at all times by a visual observer. Any Operator approved by the named Insured, provided such individuals are under the direct supervision of a properly certificated and rated pilot-in-command who is accompanied at all times by a visual observer. Policy Territory Endorsement: Worldwide Excluding Operations other than visual line-of-sight operations conducted no higher than 400 feet above ground level (AGL). Flights above 400 feet AGL permitted if conducted within 400 foot radius of a structure. Worldwide subject to UAS117 limitations, but also limited to visual line-of-sight operations conducted no higher than 400 feet above ground level (AGL). Flights above 400 feet AGL permitted if conducted within 400 foot radius of a structure. Terms and Conditions: (Including, but not limited to: x Noise and Pollution and Other Perils Exclusion Clause x Nuclear Risks Exclusion Clause x Terrorism Exclusion - Certified Acts, x War, Hi-Jacking and Other Perils Exclusion Clause (Aviation) x Asbestos Exclusion Endorsement x Date Recognition Exclusion Clause x Broad Coverage Endorsement x Electromagnetic Interference Exclusion Amendment, x Exclusion Deletion Endorsement Liability Coverage x Noise and Pollution and Other Perils Exclusion Clause x Nuclear Risks Exclusion Clause x Terrorism Exclusion - Certified Acts, x War, Hi-Jacking and Other Perils Exclusion Clause (Aviation) x Asbestos Exclusion Endorsement x Date Recognition Exclusion Clause x Broad Coverage Endorsement x Electromagnetic Interference Exclusion Amendment, x Exclusion Deletion Endorsement Liability Coverage Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 19City of Renton | 2021-2022 Liability Renewal Proposal EXPIRING COVERAGE 2020-2021 RENEWAL COVERAGE 2021-2022 Terms and Conditions - Continued: (Including, but not limited to: x Fellow Employee Coverage Endorsement x Knowledge of Occurrence and Failure to Report Endorsement x Pilot/Operator Warranty Endorsement x Policy Territory Endorsement x Purpose of Use Endorsement x Exclusion Deletion Endorsement Physical Damage Coverage x Personal Injury Extension x Fellow Employee Coverage Endorsement x Knowledge of Occurrence and Failure to Report Endorsement x Pilot/Operator Warranty Endorsement x Policy Territory Endorsement x Purpose of Use Endorsement x Exclusion Deletion Endorsement Physical Damage Coverage x Personal Injury Extension x War Liability NET Premium: $2,011.10 $2,680.05 (+33.3%)* Quote Valid Until: January 1, 2021Binding Conditions: x Signed Bind Request – See Page 25 * War coverage can be added for an additional $201. The War coverage includes claims caused by: strikes, riots, civil commotions or labor disturbances, malicious acts or acts of sabotage, and hi-jacking or any unlawful seizure of the unmanned aircraft while it is in flight. See Disclaimer Page for Important Notices and Acknowledgement Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 20City of Renton | 2021-2022 Liability Renewal Proposal Premium History COVERAGE 2017 2018 2019 2020 2021Excess Liabilities $252,381 $256,341.16 $279,325.00 $303,417.00 $393,687.00Excess Workers’ Compensation $55,710 $59,877.40 $61,148.15 $63,464.00 $65,017.00Airport Liability $19,358 $16,329.00 $18,868.00 $21,770.00 $24,009.00Storage Tank Pollution Liability $2,125 $2,196.10 $2,270.10 $2,332.00 $2,439.38Aircraft Liability $0 $1,368.35 $1,445.00 $2,011.00 $2,680.05Total Premium $329,574 $336,112.01 $363,056.25 $392,994.00 $487,832.43Broker Fee$48,450 $49,419 $50,407 $50,407Liability $15,000 Included Included Included IncludedProperty $17,500 Included Included Included IncludedOther $15,000 Included Included Included IncludedTotal Premium + Broker Fee $377,074 $384,562.01 $412,475.25 $443,401.00 $538,239.43 Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 21City of Renton | 2021-2022 Liability Renewal Proposal Disclosures This proposal of insurance is provided as a matter of convenience and information only. All information included in this proposal, including but not limited to personal and real property values, locations, operations, products, data, automobile schedules, financial data and loss experience, is based on facts and representations supplied to Alliant Insurance Services, Inc. by you. This proposal does not reflect any independent study or investigation by Alliant Insurance Services, Inc. or its agents and employees. Please be advised that this proposal is also expressly conditioned on there being no material change in the risk between the date of this proposal and the inception date of the proposed policy (including the occurrence of any claim or notice of circumstances that may give rise to a claim under any policy which the policy being proposed is a renewal or replacement). In the event of such change of risk, the insurer may, at its sole discretion, modify, or withdraw this proposal, whether or not this offer has already been accepted. This proposal is not confirmation of insurance and does not add to, extend, amend, change, or alter any coverage in any actual policy of insurance you may have. All existing policy terms, conditions, exclusions, and limitations apply. For specific information regarding your insurance coverage, please refer to the policy itself. Alliant Insurance Services, Inc. will not be liable for any claims arising from or related to information included in or omitted from this proposal of insurance. Alliant embraces a policy of transparency with respect to its compensation from insurance transactions. Details on our compensation policy, including the types of income that Alliant may earn on a placement, are available on our website at www.alliant.com. For a copy of our policy or for any inquiries regarding compensation issues pertaining to your account you may also contact us at: Alliant Insurance Services, Inc., Attention: General Counsel, 701 B Street, 6th Floor, San Diego, CA 92101. Analyzing insurers' over-all performance and financial strength is a task that requires specialized skills and in-depth technical understanding of all aspects of insurance company finances and operations. Insurance brokerages such as Alliant Insurance typically rely upon rating agencies for this type of market analysis. Both A.M. Best and Standard and Poor's have been industry leaders in this area for many decades, utilizing a combination of quantitative and qualitative analysis of the information available in formulating their ratings. A.M. Best has an extensive database of nearly 6,000 Life/Health, Property Casualty and International companies. You can visit them at www.ambest.com. For additional information regarding insurer financial strength ratings visit Standard and Poor's website at www.standardandpoors.com. Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 22City of Renton | 2021-2022 Liability Renewal Proposal NY Regulation 194 Alliant Insurance Services, Inc. is an insurance producer licensed by the State of New York. Insurance producers are authorized by their license to confer with insurance purchasers about the benefits, terms and conditions of insurance contracts; to offer advice concerning the substantive benefits of particular insurance contracts; to sell insurance; and to obtain insurance for purchasers. The role of the producer in any particular transaction typically involves one or more of these activities. Compensation will be paid to the producer, based on the insurance contract the producer sells. Depending on the insurer(s) and insurance contract(s) the purchaser selects, compensation will be paid by the insurer(s) selling the insurance contract or by another third party. Such compensation may vary depending on a number of factors, including the insurance contract(s) and the insurer(s) the purchaser selects. In some cases, other factors such as the volume of business a producer provides to an insurer or the profitability of insurance contracts a producer provides to an insurer also may affect compensation. The insurance purchaser may obtain information about compensation expected to be received by the producer based in whole or in part on the sale of insurance to the purchaser, and (if applicable) compensation expected to be received based in whole or in part on any alternative quotes presented to the purchaser by the producer, by requesting such information from the producer. Other Disclosures / Disclaimers FATCA: The Foreign Account Tax Compliance Act (FATCA) requires the notification of certain financial accounts to the United States Internal Revenue Service. Alliant does not provide tax advice so please contact your tax consultant for your obligation regarding FATCA. Claims Reporting: Your policy will come with specific claim reporting requirements. Please make sure you understand these obligations. Contact your Alliant Service Claims Made Policy: This claims-made policy contains a requirement stating that this policy applies only to any claim first made against the Insured and reported to the insurer during the policy period or applicable extended reporting period. Claims must be submitted to the insurer during the policy period, or applicable extended reporting period, as required pursuant to the Claims/Loss Notification Clause within the policy in order for coverage to apply. Late reporting or failure to report pursuant to the policy’s requirements could result in a disclaimer of coverage by the insurer. Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 23City of Renton | 2021-2022 Liability Renewal Proposal Other Disclosures / Disclaimers - Continued NRRA: The Non-Admitted and Reinsurance Reform Act (NRRA) went into effect on July 21, 2011. Accordingly, surplus lines tax rates and regulations are subject to change which could result in an increase or decrease of the total surplus lines taxes and/or fees owed on this placement. If a change is required, we will promptly notify you. Any additional taxes and/or fees must be promptly remitted to Alliant Insurance Services, Inc. Changes and Developments It is important that we be advised of any changes in your operations, which may have a bearing on the validity and/or adequacy of your insurance. The types of changes that concern us include, but are not limited to, those listed below: x Changes in any operations such as expansion to another states, new products, or new applications of existing products. x Travel to any state not previously disclosed. x Mergers and/or acquisition of new companies and any change in business ownership, including percentages. x Any newly assumed contractual liability, granting of indemnities or hold harmless agreements. x Any changes in existing premises including vacancy, whether temporary or permanent, alterations, demolition, etc. Also, any new premises either purchased, constructed or occupied x Circumstances which may require an increased liability insurance limit. x Any changes in fire or theft protection such as the installation of or disconnection of sprinkler systems, burglar alarms, etc. This includes any alterations to the system. x Immediate notification of any changes to a scheduled of equipment, property, vehicles, electronic data processing, etc. x Property of yours that is in transit, unless previously discussed and/or currently insured. Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 24City of Renton | 2021-2022 Liability Renewal Proposal Other Disclosures / Disclaimers - Continued Certificates / Evidence of Insurance A certificate is issued as a matter of information only and confers no rights upon the certificate holder. The certificate does not affirmatively or negatively amend, extend or alter the coverage afforded by a policy. Nor does it constitute a contract between the issuing insurer(s), authorized representative, producer or certificate holder. You may have signed contracts, leases or other agreements requiring you to provide this evidence. In those agreements, you may assume obligations and/or liability for others (Indemnification, Hold Harmless) and some of the obligations that are not covered by insurance. We recommend that you and your legal counsel review these documents. In addition to providing a certificate of insurance, you may be required to name your client or customer on your policy as an additional insured. This is only possible with permission of the insurance company, added by endorsement and, in some cases, an additional premium. By naming the certificate holder as additional insured, there are consequences to your risks and insurance policy including: xYour policy limits are now shared with other entities; their claims involvement may reduce or exhaust your aggregate limit.xYour policy may provide higher limits than required by contract; your full limits can be exposed to the additional insured.xThere may be conflicts in defense when your insurer has to defend both you and the additional insured.See Request to Bind Coverage page for acknowledgement of all disclaimers and disclosures. Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 25City of Renton | 2021-2022 Liability Renewal Proposal Flood Offering Flooding is a serious threat to both personal and commercial clients. Flooding can happen anywhere, not just zone referred to as high-risk areas (Special Flood Hazard Area). Your Alliant team is ready to explain how it works and the associated costs. ƒBasic FactsCongress created the NFIP in 1968 in response to the rising cost of taxpayer-funded disaster relief for flood victims and the increasing amount of damage caused by floods. The NFIP makes federally backed flood insurance available in communities that agree to adopt and enforce floodplain management ordinances to reduce future flood damage. The NFIP is self-supporting for the average historical loss year. This means that unless there is a widespread disaster, operating expenses and flood insurance claims are financed through premiums collected. Commercial buildings or residential dwellings owned by commercial entities are considered commercial property. All others are residential dwellingsThe FEMA Summary for Commercial Property and FEMA Standard Summary of Coverage provides information on the following: xTypes of Flood Insurance CoveragexWhat is a Flood- “a General and temporary condition of partial or complete inundation of two or more acres of normally dry land area”…xDeductibles – various options to meet your financial needsxWhat is Covered and What is NotxThe valuation of the Property – Actual Cash Value or Replacement CostƒAdditional InformationxFlood Zonesohttps://www.fema.gov/flood-zonesxExcess Flood Insurance (contact your Producer for additional information)oIncreased limits over the maximum flood limit provided by NFIPƒFEMA Glossary of Flood Termshttps://www.fema.gov/national-flood-insurance-program/definitions If you do NOT wish to purchase flood insurance your signature is required below: Signature: Date: Name Printed / Typed: Company Name: <ĞůƐĞLJZ͘dĞƌŶĞƐ͕ZŝƐŬDĂŶĂŐĞƌϭϮͬϭϰͬϮϬŝƚLJŽĨZĞŶƚŽŶyg Date Issued: 12/7/20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 26City of Renton | 2021-2022 Liability Renewal Proposal Request to Bind CoverageCity of Renton We have reviewed the proposal and agree to the terms and conditions of the coverages presented. We are requesting coverage to be bound as outlined by coverage line below: Coverage Line Bind Coverage for: General Liability/Excess Liability – $25M [Excess Workers’ Compensation and Employers Liability [Airport Liability / War, Hi-Jacking& Other Perils / TRIA [Storage Tank Pollution Liability [Unmanned Aircraft Liability [Did you know that Alliant works with premium financing companies? Are you interested in financing your annual premium? Yes, please provide us with a financing quote. No, we do not wish to finance our premium. տ [ This Authorization to Bind Coverage also acknowledges receipt and review of all disclaimers and disclosures, including exposures used to develop insurance terms, contained within this proposal. Signature of Authorized Insured Representative Date Title Printed / Typed Name This proposal does not constitute a binder of insurance. Binding is subject to the final carrier approval. The actual terms and conditions of the policy will prevail. 0D\RU&LW\RI5HQWRQ0D\RU$UPRQGR3DYRQH12/17/2020Attest:______________________________Jason A. Seth, MMC, City Clerk