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Home My WebLink AboutContractExcess Liability, Workers’ Compensation, Pollution, Airport Liability and Unmanned Aircraft Renewal Proposal January 1, 2022 – 2023 Presented on December 10, 2021 Brian White, Senior Vice President Anne Shackelford, 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.com City of Renton CAG-21-289 Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 2 City of Renton | 2022-2023 Liability Renewal Proposal Table of Contents Your Service Team ..................................................................................................................................................................................................................... 3 Liability Insurance Market Update: December, 2021 .................................................................................................................................................................. 4 Casualty Insurance Program Structure: Expiring & Renewal ..................................................................................................................................................... 5 Line of Coverage – General Liability Program - $25,000,000 ..................................................................................................................................................... 6 Line of Coverage - Excess Workers’ Compensation and Employers Liability ............................................................................................................................ 9 Line of Coverage - Airport Liability/War, Hi-Jacking & Other Perils/TRIA ................................................................................................................................ 11 Line of Coverage - Storage Tank Pollution Liability .................................................................................................................................................................. 15 Line of Coverage – Unmanned Aircraft Insurance .................................................................................................................................................................... 16 Premium History ........................................................................................................................................................................................................................ 18 Disclosures ................................................................................................................................................................................................................................ 19 NY Regulation 194 ....................................................................................................................................................................................................................................................................................... 20 FATCA: ............................................................................................................................................................................................................................................................................................................... 20 Claims Reporting: ......................................................................................................................................................................................................................................................................................... 20 Claims Made Policy: ..................................................................................................................................................................................................................................................................................... 20 NRRA: ................................................................................................................................................................................................................................................................................................................. 21 Changes and Developments ..................................................................................................................................................................................................................................................................... 21 Certificates / Evidence of Insurance .................................................................................................................................................................................................................................................... 22 Flood Offering ........................................................................................................................................................................................................................... 23 Request to Bind Coverage ........................................................................................................................................................................................................ 24 Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 3 City of Renton | 2022-2023 Liability Renewal Proposal Your Service Team Brian White Senior Vice President bwhite@alliant.com Phone: 206-204-9126 Cell: 415-203-5983 Anne Shackelford Vice President anne.shackelford@alliant.com Phone: 206-454-8021 Cell: 425-231-4714 Kevin Miller First Vice President kamiller@alliant.com Phone: 206 204 9141 Cell: 602 300 8468 Jamie Arnoldi Account Manager Jamie.Arnoldi@alliant.com Phone: 949-627-7000 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: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 4 City of Renton | 2022-2023 Liability Renewal Proposal Liability Insurance Market Update: December, 2021 The Casualty insurance market continues to undergo significant realignment in terms of available capacity, underwriters’ appetite, and pricing adequacy. The Public Sector, in particular, is experiencing this in an acute way. Public Entities with Law Enforcement exposure are under even greater pressure. The core issues impacting this market shift are as follows:  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.  Washington State Venue – very limited tort protections/immunities: o Joint & Several Liability  Market withdrawal / Capacity Reductions over the last several years from key markets, accelerating more recently – in Spring, 2021 yet another large writer (Trident/Argonaut) of Excess Liability for Public Sectors ceased operations.  Insurers contend 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.  Social environment around Law Enforcement activities. Value up nearly 100% since 2014 Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 5 City of Renton | 2022-2023 Liability Renewal Proposal Casualty Insurance Program Structure: Expiring & Renewal $25M $25M $20M $20M $15M $15M $5M $5M $2M $2M $250K $300K *Except Auto, which is outside Aggregate *Except Auto, which is outside Aggregate Total: $463,437 Self Insured Retention (SIR) Per Occurrence Hallmark $5M X 15M ($5M per Occurrence / $5M Aggregate*) AWAC $10M X $5M ($10M per Occurrence / $10M Aggregate*) SN Auto $2M SN POL / EPL $2M/$4M SN Gen. Liab. $2M/$4M SN Law Enforcement Prof. $2M/$4M Hallmark $5M X 15M ($5M per Occurrence / $5M Aggregate*) Total: $393,687 Self Insured Retention (SIR) Per Occurrence SN Auto $2M SN POL / EPL $2M/$4M SN Gen. Liab. $2M/$4M SN Law Enforcement Prof. $2M/$4M AWAC $5M X 20M ($5M per Occurrence / $5M Aggregate*) Safety National (SN) $3M X $2M ($3M per Occurrence / $6M Aggregate*) AWAC $5M X 20M ($5M per Occurrence / $5M Aggregate*) Proposed Renewal Liability Placement Effective 1/1/21 (Not to Scale) Proposed Renewal Liability Placement Effective 1/1/22 (Not to Scale) AWAC $10M X $5M ($10M per Occurrence / $10M Aggregate*) Safety National (SN) $3M X $2M ($3M per Occurrence / $6M Aggregate*) Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 6 City of Renton | 2022-2023 Liability Renewal Proposal Line of Coverage – General Liability Program - $25,000,000 EXPIRING COVERAGE 2021-2022 RENEWAL COVERAGE 2022-2023 INSURANCE COMPANY: Safety National / Allied World / Hallmark Safety National / Allied World / Hallmark A.M. BEST RATING: 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 Safety National / Safety Specialty – A++ (Superior), Financial Size Category XV ($2 Billion or greater), as of 11/17/21 Allied World – A (Excellent), Financial Size Category XV ($2 Billion or greater), as of 3/26/21 Hallmark – A- (Excellent), VIII ($100 Million to $250 Million) as of 11/16/2021 STANDARD & POOR’S RATING: Safety National – A+, pulled 11/20/20 Allied World – A-, pulled 11/20/20 Hallmark – Not Rated Safety National – A+, pulled 11/23/21 Safety Specialty – Not Rated Allied World – A-, pulled 11/23/21 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, 2021 to January 1, 2022 January 1, 2022 to January 1, 2023 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 Excluded at $10M x $5M AWAC Layer and upwards Excluded at $10M x $5M AWAC Layer and upwards Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 7 City of Renton | 2022-2023 Liability Renewal Proposal EXPIRING COVERAGE 2021-2022 RENEWAL COVERAGE 2022-2023 Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS) Excluded at $5M x $15M Hallmark Layer and upwards Excluded at $5M x $15M Hallmark Layer and upwards Failure to Supply Water Not Excluded Not Excluded Subsidence Not Excluded Not Excluded Loss Prevention / Risk Management Subsidy $10,000 $10,000 Subsidence Not Excluded Not Excluded Total Pollution Exclusion except for Hostile Fire Exception   Nuclear Energy Liability Excluded Excluded Fungi/Bacteria/Silica/Asbestos/Lead Excluded Excluded ERISA Coverage Excluded Excluded Amended Definition of Bodily Injury   Unintentional Failure to Disclose Haz or Occ   Co-Employee Exclusion Carveback   Injury to Volunteer Firefighters Excluded Excluded Waiver of Premium Audit Condition   Medical Expense Coverage Excluded Excluded Other Terms/Conditions: Modified SIR – Periodic Claim Reporting Quarterly Reporting Requirement Quarterly Reporting Requirement Broadened Named Insured   Includes Care, Custody or Control of the “autos” of others the insured is providing maintenance or repair services to   Flat Annual Premium – Non-Audit   90 Day Notice of Cancellation; except 10 Days for Non-Payment   Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 8 City of Renton | 2022-2023 Liability Renewal Proposal EXPIRING COVERAGE 2021-2022 RENEWAL COVERAGE 2022-2023 Unmanned Aircraft Exception to Aircraft Exclusion Drones are not covered Drones are not covered Blanket Primary/Non-Contributory Endorsement when required by written contract   Blanket Waiver of Subrogation   Limited Pollution: Pesticide/Herbicide & Water Treatment/Purification   Clash Coverage   Incidental Medical Malpractice (Paramedic/EMTs)   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 $300,000 Self-Insured Retention Total Program Premium $393,687.00 $463,437.00 (18%) Binding Conditions: No Longer Applicable  Signed Bind Request  All Surplus Lines Taxes/Fees are Fully Earned  *Includes Surplus Lines Taxes and Fees where applicable Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 9 City of Renton | 2022-2023 Liability Renewal Proposal Line of Coverage - Excess Workers’ Compensation and Employers Liability EXPIRING COVERAGE Two Year Policy RENEWAL COVERAGE INSURANCE COMPANY: Safety National Casualty Corporation Safety National Casualty Corporation A.M. BEST RATING: A++ (Superior), Financial Size Category XV ($2 Billion or greater), 11/11/20 A++ (Superior), Financial Size Category XV ($2 Billion or greater), 11/17/21 STANDARD & POOR’S RATING: A+, pulled 12/3/20 A+, pulled 11/23/21 STATE COVERED STATUS: Admitted Admitted POLICY / COVERAGE TERM: January 1, 2021 to January 1, 2022 January 1, 2022 to January 1, 2023 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 $750,000 All Others $1,000,000 Police Officers Cancellation: 90 Days 90 Days Endorsements and Exclusions: (including but not limited to) Washington Amendatory Endorsement Yes Yes Washington Cancellation Endorsement Yes Yes Washington Self Insurer Endorsement Yes Yes Washington Service and Administration Endorsement Yes Yes Incidental Longshoremen's and Harbor Workers' Compensation Act Coverage Endorsement Yes Yes Maritime Coverage Endorsement- No Known Exposure Yes Yes Foreign Voluntary Workers' Compensation and Employers' Liability Yes Yes 90 Day Notice of Cancellation Yes Yes Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 10 City of Renton | 2022-2023 Liability Renewal Proposal EXPIRING COVERAGE Two Year Policy RENEWAL COVERAGE Broad Form All States Yes Yes Blanket Waiver of Subrogation Yes Yes Voluntary Compensation Endorsement Yes Yes Self-Insured Retention Per Occurrence - Washington Law Enforcement Officers No Yes Policyholder Disclosure Notice of Terrorism Insurance Yes No Terrorism Risk Insurance Program Reauthorization Act Endorsement No Yes TRIA Included Included Estimated Annual Man-hours: 1,218,0009 1,099,164 (-9.76%) Net Rate Per Man-hour: 0.05338 0.09120 Estimated Net Annual Premium / Net Annual Deposit Premium: $65,017 $100,244 (54%) Policy Auditable: Yes, subject to actual worker hours Yes, subject to actual worker hours Binding Conditions: No Longer Applicable Signed Bind Request – See Page 26 See Disclaimer Page for Important Notices and Acknowledgement Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 11 City of Renton | 2022-2023 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 8/19/2020 A (Excellent), Financial Size Category XV ($2 Billion or greater), as of 10/7/21 STANDARD & POOR’S RATING: A+, pulled 10/27/20 A+, pulled 7/16/21 STATE COVERED STATUS: Admitted Admitted POLICY / COVERAGE TERM: January 1, 2021 to January 1, 2022 January 1, 2022 to January 1, 2023 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 Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 12 City of Renton | 2022-2023 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 $50,000,000 $50,000,000 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 $ 500,000 Medical Expense $ 10,000 $ 10,000 Personal & Advertising Injury Aggregate $50,000,000 $50,000,000 Products/Completed Operations Aggregate $ 50,000,000 $ 50,000,000 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 Physical Damage to Non-Owned Aircraft: $5,000 Piston/$10,000 Turbine Engine Physical Damage to Non-Owned Aircraft: $5,000 Piston/$10,000 Turbine Engine Hangarkeeper’s Liability $5,000 Piston/$10,000 Turbine $5,000 Piston/$10,000 Turbine Premium: Airport Liability $18,207.00 $20,778.00 War, Hi-Jacking & Other Perils/TRIA $ 5,802.00 $ 6,964.00 Total $24,009.00 $ 27,742.00 (+16%) Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 13 City of Renton | 2022-2023 Liability Renewal Proposal  Aviation Commercial General Liability  Declarations Commercial General Liability  Coverage Form Amendment Of Coverage Territory - Worldwide Coverage Amendment Of Bodily Injury Definition  National Incident Management System/National Response Plan NIMS Agreement Endorsement  Mutual Aid Agreement  Aviation Operations Definition Endorsement  Deductible Liability Insurance Endorsement  Cancellation By Us Endorsement  Asbestos Exclusion Endorsement  Nuclear Risks Exclusion Clause  Date Recognition Exclusion Clause  Date Recognition Limited Coverage Clause  Noise and Pollution And Other Perils Exclusion Clause  Pollution or Contamination of The Product Sold Or Supplied  Terrorism Exclusion - Certified Acts  Federal Share of Compensation Under TRIA and Cap on Losses Endorsement  Exclusion Deletion Endorsement  War Hi-jacking And Other Perils Exclusion Clause Aviation - Washington  War Hi-jacking And Other Perils Exclusion Clause Aviation AVN48B Amendatory Endorsement-  Extended Coverage Endorsement Aviation Liabilities  Aviation Commercial General Liability  Declarations Commercial General Liability  Coverage Form Amendment Of Coverage Territory - Worldwide Coverage Amendment Of Bodily Injury Definition  National Incident Management System/National Response Plan NIMS Agreement Endorsement  Mutual Aid Agreement  Aviation Operations Definition Endorsement  Deductible Liability Insurance Endorsement  Cancellation By Us Endorsement  Asbestos Exclusion Endorsement  Nuclear Risks Exclusion Clause  Date Recognition Exclusion Clause  Date Recognition Limited Coverage Clause  Noise and Pollution and Other Perils Exclusion Clause  Pollution or Contamination of The Product Sold or Supplied  Terrorism Exclusion - Certified Acts  Federal Share of Compensation Under TRIA and Cap on Losses Endorsement  Exclusion Deletion Endorsement  War Hi-jacking And Other Perils Exclusion Clause Aviation - Washington  War Hi-jacking And Other Perils Exclusion Clause Aviation AVN48B Amendatory Endorsement-  Extended Coverage Endorsement Aviation Liabilities Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 14 City of Renton | 2022-2023 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 Endorsement Aviation Liabilities Amendment To Limitation Of Liability  Airport Expansion Endorsement  Non-Owned Aircraft Liability Endorsement - Airport Owner / Operator  Cargo Liability Endorsement CGL1252 (03-10) Employee Benefits Liability Endorsement  Excess Auto Legal Liability  Excess Employer's Liability CGL1476 (05-15) Waiver of Governmental Immunity Endorsement UE1437  Sanctions and Embargo Clause  Washington Amendatory Endorsement  Extended Coverage Endorsement Aviation Liabilities Amendment to Limitation of Liability  Airport Expansion Endorsement  Non-Owned Aircraft Liability Endorsement - Airport Owner / Operator  Cargo Liability Endorsement CGL1252 (03-10) Employee Benefits Liability Endorsement  Excess Auto Legal Liability  Excess Employer's Liability CGL1476 (05-15) Waiver of Governmental Immunity Endorsement UE1437  Sanctions and Embargo Clause  Washington Amendatory Endorsement  Change to Insurer’s Address Notification  Coronavirus Exclusion for Excess Non-Aviation Liability – Washington Binding Conditions:  Signed Bind Request – See Page 26  Signed TRIA Disclosure Notice rejecting Standalone Terrorism. See Disclaimer Page for Important Notices and Acknowledgement Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 15 City of Renton | 2022-2023 Liability Renewal Proposal Line of Coverage - Storage Tank Pollution Liability EXPIRING COVERAGE 2021-2022 RENEWAL COVERAGE 2022-2023 INSURANCE COMPANY: Great American E&S Insurance Company Mid-Continent Casualty Company A.M. BEST RATING: A+ (Superior), Financial Size Category XV ($2.00 Billion or greater), as of 10/28/2020 A+ (Superior), Financial Size Category VIII (100 Million to $250 Million), as of 10/28/2020 STATE COVERED STATUS: Non-Admitted Admitted POLICY / COVERAGE TERM: January 1, 2021 to January 1, 2022 January 1, 2022 to January 1, 2023 Coverage Form: Pollution Liability Coverage Form (Designated Sites) Pollution Liability Coverage Form Limit: $1,000,000 Per Environmental Incident / Aggregate $500,000 – Claim Handling Expense, Including Defense Expense Per Insured Site $50,000 – Tank Repair or Replacement Costs $1,000,000 Coverage A: Bodily Injury & Property Damage Per Pollution Incident / Annual Aggregate $1,000,000 Coverage B: Government Mandated “Clean-Up Costs” Liability $50,000 Coverage C: Repair of Storage Tank System(s) 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 Deductibles: Per Environmental Incident $2,500 $2,500 NET Premium: Policy Fee: TOTAL PREMIUM: $2,475.00 $ 150.00 ($ 185.63) Credit Commission to Broker Fee $2,439.37 $2,402.23 $ 150.00 ($ 180.16) Credit Commission to Broker Fee $2,372.07 (-3%) Binding Conditions: No Longer Applicable Signed Bind Request See Disclaimer Page for Important Notices and Acknowledgement Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 16 City of Renton | 2022-2023 Liability Renewal Proposal Line of Coverage – Unmanned Aircraft Insurance EXPIRING COVERAGE 2021-2022 RENEWAL COVERAGE 2022-2023 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 10/7/21 STANDARD & POOR’S RATING: A+, pulled 7/25/19 A+, pulled 7/16/21 STATE COVERED STATUS: Admitted Admitted POLICY / COVERAGE TERM: January 1, 2021 to January 1, 2022 January 1, 2022 to January 1, 2023 Coverage Form: Unmanned Aircraft Insurance Unmanned Aircraft Insurance Scheduled Aircraft 31 UAVs under 11 lbs 1 UAV 11-21 lbs 37 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 TRIA Included Included 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. 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. Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 17 City of Renton | 2022-2023 Liability Renewal Proposal EXPIRING COVERAGE 2021-2022 RENEWAL COVERAGE 2022-2023 Terms and Conditions: (Including, but not limited to:  Noise and Pollution and Other Perils Exclusion Clause  Nuclear Risks Exclusion Clause  Terrorism Exclusion - Certified Acts,  War, Hi-Jacking and Other Perils Exclusion Clause (Aviation)  Asbestos Exclusion Endorsement  Date Recognition Exclusion Clause  Broad Coverage Endorsement  Electromagnetic Interference Exclusion Amendment,  Exclusion Deletion Endorsement Liability Coverage  Fellow Employee Coverage Endorsement  Knowledge of Occurrence and Failure to Report Endorsement  Pilot/Operator Warranty Endorsement  Policy Territory Endorsement  Purpose of Use Endorsement  Exclusion Deletion Endorsement Physical Damage Coverage  Personal Injury Extension  War Liability  Noise and Pollution and Other Perils Exclusion Clause  Nuclear Risks Exclusion Clause  Terrorism Exclusion - Certified Acts,  War, Hi-Jacking and Other Perils Exclusion Clause (Aviation)  Asbestos Exclusion Endorsement  Date Recognition Exclusion Clause  Broad Coverage Endorsement  Electromagnetic Interference Exclusion Amendment,  Exclusion Deletion Endorsement Liability Coverage  Fellow Employee Coverage Endorsement  Knowledge of Occurrence and Failure to Report Endorsement  Pilot/Operator Warranty Endorsement  Policy Territory Endorsement  Purpose of Use Endorsement  Exclusion Deletion Endorsement Physical Damage Coverage  Personal Injury Extension  War Liability NET Premium: $3,153.00 ($ 472.95 Credit Commission to Broker Fee) $2,680.05 $3,950.00 ($ 592.50) Credit Commission to Broker Fee $3,357.50 (25%) Quote Valid Until: January 1, 2021 Binding Conditions:  Signed Bind Request See Disclaimer Page for Important Notices and Acknowledgement Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 18 City of Renton | 2022-2023 Liability Renewal Proposal Premium History COVERAGE 2017 2018 2019 2020 2021 2022 Excess Liabilities $252,381 $256,341.16 $279,325.00 $303,417.00 $393,687.00 $463,437.00 Excess Workers’ Compensation $55,710 $59,877.40 $61,148.15 $63,464.00 $65,017.00 $100,244.00 Airport Liability $19,358 $16,329.00 $18,868.00 $21,770.00 $24,009.00 $27,742.00 Storage Tank Pollution Liability $2,125 $2,196.10 $2,270.10 $2,332.00 $2,439.37 $2,372.07 Unmanned Aircraft (Drones) Liability $0 $1,368.35 $1,445.00 $2,011.00 $2,680.05 $3,357.50 Total Premium $329,574 $336,112.01 $363,056.25 $392,994.00 $487,832.42 $597,152.57 Broker Fee $48,450 $49,419 $50,407 $50,407 $51,415.00 Liability $15,000 Included Included Included Included Included Property $17,500 Included Included Included Included Included Other $15,000 Included Included Included Included Included Total Premium + Broker Fee $377,074 $384,562.01 $412,475.25 $443,401.00 $538,239.42 $648,567.57 Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 19 City of Renton | 2022-2023 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: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 20 City of Renton | 2022-2023 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: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 21 City of Renton | 2022-2023 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:  Changes in any operations such as expansion to another states, new products, or new applications of existing products.  Travel to any state not previously disclosed.  Mergers and/or acquisition of new companies and any change in business ownership, including percentages.  Any newly assumed contractual liability, granting of indemnities or hold harmless agreements.  Any changes in existing premises including vacancy, whether temporary or permanent, alterations, demolition, etc. Also, any new premises either purchased, constructed or occupied  Circumstances which may require an increased liability insurance limit.  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.  Immediate notification of any changes to a scheduled of equipment, property, vehicles, electronic data processing, etc.  Property of yours that is in transit, unless previously discussed and/or currently insured. Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 22 City of Renton | 2022-2023 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:  Your policy limits are now shared with other entities; their claims involvement may reduce or exhaust your aggregate limit.  Your policy may provide higher limits than required by contract; your full limits can be exposed to the additional insured.  There 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: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 23 City of Renton | 2022-2023 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. Basic Facts Congress 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 dwellings The FEMA Summary for Commercial Property and FEMA Standard Summary of Coverage provides information on the following: Types of Flood Insurance Coverage What is a Flood- “a General and temporary condition of partial or complete inundation of two or more acres of normally dry land area”… Deductibles – various options to meet your financial needs What is Covered and What is Not The valuation of the Property – Actual Cash Value or Replacement Cost Additional Information Flood Zones o https://www.fema.gov/flood-zones Excess Flood Insurance (contact your Producer for additional information) o Increased limits over the maximum flood limit provided by NFIP FEMA Glossary of Flood Terms https://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: 12-13-21 Kelsey Urban, Risk Manger City of Renton Date Issued: 12/10/21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 24 City of Renton | 2022-2023 Liability Renewal Proposal Request to Bind Coverage City 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. ☐ ☐ 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. x x x x x Mayor, City of Renton Armondo Pavone x 12/13/2021 Attest: _______________________ Jason Seth, City Clerk, MMC