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CAG-14-118 PROFESSIONAL SERVICES AGREEMENT Between the City of Renton and Alliant Insurance Services, Inc. THIS AGREEMENT is made between the City of Renton, a Washington municipal corporation (hereinafter the "City"), and Alliant Insurance Services, Inc. organized under the laws of the State of Washington, located and doing business at: 720 Olive Way, 17`h Floor, Seattle, WA 98101 (hereinafter called the "Contractor" or"Broker"). I. DESCRIPTION OF WORK. Contractor shall perform the following services for the City: Property and casualty insurance brokerage services as described in the Broker's accepted proposal, dated August 5, 2014, that is fully made a part of this Agreement and attached as Exhibit"A". Contractor further represents that the services furnished under this Agreement will be performed in accordance with generally accepted professional practices within the Puget Sound region in effect at the time those services are performed. II. TIME OF COMPLETION. The parties agree that work will begin on the tasks described in Section I above immediately upon the effective date of this Agreement. Services shall continue until December 31, 2017. This Agreement is eligible for time extensions, as negotiated and mutually agreed upon by both parties, unless otherwise cancelled. III. COMPENSATION. The City shall pay Contractor a total amount not to exceed forty seven thousand five hundred dollars ($47,500) for the brokerage services described in this Agreement and described in the proposal. Services described in the proposal (Exhibit "A") as optional shall be negotiated separately from this Agreement, The Contractor shall invoice the City based upon the insurance coverage bound to take effect on or after January 1, 2015. The rates charged for other Contractor's services shall be as delineated in the Broker's accepted proposal. All rates charged shall remain locked at the negotiated rates throughout the term of this Agreement. IV. INDEPENDENT CONTRACTOR. The parties intend that an Independent Contractor-Employer Relationship will be created by this Agreement. By their execution of this Agreement, and in accordance with Ch, 51.08 RCW, the parties make the following representations: A. The Contractor has the ability to control and direct the performance and details of its work, the City being interested only in the results obtained under this Agreement. B. The Contractor maintains and pays for its own place of business from which Contractor's services under this Agreement will be performed. C. The Contractor has an established and independent business that is eligible for a business deduction for federal income tax purposes that existed before the City retained Contractor's services, or the Contractor is engaged in an independently established trade, occupation, profession, or business of the same nature as that involved under this Agreement. D. The Contractor is responsible for filing as they become due all necessary tax documents with appropriate federal and state agencies, including the Internal Revenue Service and the state Department of Revenue, E. The Contractor has registered its business and established an account with the state Department of Revenue and other state agencies as may be required by Contractor's business, and has obtained a Unified Business Identifier (UBI) number from the State of Washington. F. The Contractor maintains a set of books dedicated to the expenses and earnings of its business. V. TERMINATION. Either party may terminate this Agreement, with or without cause, upon providing the other party thirty (30) calendar days written notice at its address set forth on the signature block of this Agreement. VI. DISCRIMINATION. In the hiring of employees for the performance of work under this Agreement or any subcontract, the Contractor, its subcontractors, or any person acting on behalf of the Contractor or subcontractor shall not discriminate against any person who is qualified and available to perform the work. VII. INDEMNIFICATION. Contractor shall defend, indemnify and hold the City, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with the Contractor's performance of this Agreement, except for that portion of the injuries and damages caused by the City's negligence. The City's inspection or acceptance of any of Contractor's work when completed shall not be grounds to avoid any of these covenants of indemnification. The provisions of this section shall survive the expiration or termination of this Agreement. In the event Contractor refuses tender of defense in any suit or any claim, if that tender was made pursuant to this indemnification clause, and if that refusal is subsequently determined by a court having jurisdiction (or other agreed tribunal) to have been a wrongful refusal on the Contractor's part, then Contractor shall pay all the City's costs for defense, Including all reasonable expert witness fees and reasonable attorneys' fees, plus the City's legal costs and fees incurred because there was a wrongful refusal on the Contractor's part. VIII. INSURANCE. Consultant's Insurance. Consultant shall secure and maintain the following insurance policies, and shall not cancel or suspend the insurance policies identified below, except after twenty (20) calendar day's prior written notice by certified-mail to the City of Renton: A. Commercial General Liability Insurance: Commercial general liability insurance in the minimum amounts of $1,000,000 for each occurrence/$2,000,000 aggregate throughout the duration of this Agreement. B. Automobile Liability insurance: With a minimum combined single limit for bodily injury and property damage of $1,000,000 for each accident. This is required of all consultant and professional service providers where a vehicle will be utilized to perform, prepare to perform or satisfy the Scope of Services. C. Professional Liability Insurance: Professional liability Insurance, in the minimum amount of $5,000,000 for each occurrence, shall also be secured for any professional services being provided to Renton that are excluded in the commercial general liability insurance. D. Workers' Compensation: Workers' compensation coverage, as required by the Industrial Insurance laws of the State of Washington. Renton as an Additional-Insured: It is agreed that on Consultant's commercial general liability policy, the City of Renton will be named as an Additional-Insured on a primary and non-contributory basis. Any coverage maintained by the City of Renton is solely for the coverage and benefit of Renton, and its elected officials, officers, agents, employees, representatives and volunteers. Verification of Coverage: Subject to Renton's review and acceptance, a certificate of insurance showing the proper endorsements, shall be delivered to Renton before executing the work of this Agreement. Review of Polly: Upon request, Consultant shall give Renton a full copy of the insurance policy for its records and for the Renton City Attorney's or Risk Manager's review. The policy limits may be reviewed and the value reassessed annually or as required by law. Termination: Notwithstanding any other provision of this Agreement, the failure of Consultant to comply with the above provisions of this section shall subject this Agreement to immediate termination without notice to any person in order to protect the public interest. Nr.i 4./ IX. CONTRACTOR'S WORK AND RISK. The Contractor agrees to comply with all federal, state, and municipal laws, rules, and regulations that are now effective or in the future become applicable to Contractor's business, equipment, and personnel engaged in operations covered by this Agreement or accruing out of the performance of those services. All work shall be done at Contractor's own risk, and Contractor shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work. X. MISCELLANEOUS PROVISIONS. A. Non-Waiver of Breach. The failure of the City to insist upon strict performance of any of the covenants and agreements contained in this Agreement, or to exercise any option conferred by this Agreement in one or more instances shall not be construed to be a waiver or relinquishment of those covenants, agreements or options, and the same shall be and remain In full force and effect. C. Resolution of Disputes and Governing-La . This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. If the parties are unable to settle any dispute, difference or claim arising from the parties' performance of this Agreement, the exclusive means of resolving that dispute, difference or claim, shall only be by filing suit exclusively under the venue, rules and jurisdiction of the King County Superior Court, King County, Washington, unless the parties agree in writing to an alternative dispute resolution process. In any claim or lawsuit for damages arising from the parties' performance of this Agreement, each party shall pay all its legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit, including all appeals, in addition to any other recovery or award provided by law; provided, however, nothing in this paragraph shall be construed to limit the City's right to indemnification under Section VII of this Agreement. D. Written Notice. All communications regarding this Agreement shall be sent to the parties at the addresses listed on the signature page of the Agreement, unless notified to the contrary. Any written notice hereunder shall become effective three (3) business days after the date of mailing by registered or certified mail, and shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement or such other address as may be hereafter specified in writing. E. AEsignment. Any assignment of this Agreement by either party without the written consent of the non-assigning party shall be void. F. Modification. No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of the City and Contractor. G. Entire Agreement. The written provisions and terms of this Agreement, together with any Exhibits attached hereto, shall supersede all prior verbal statements of any officer or other representative of the City, and such statements shall not be effective or be construed as entering into or forming a part of or altering in any manner this Agreement. Should any language in any of the exhibits to this Agreement conflict with any language contained in this Agreement, the terms of this Agreement shall prevail. IN WITNESS, the parties below execute this Agreement, which shall become effective on the last date entered below. CONTRACTOR: ------r------___ __-_—_--_. -----.__. , I CITY OF TON: By 7 By: signs rel , (si nature) - Pr� © Print Name: Denis Law Its: Its N 3vor (tit e) 1� DATE: TTEST: i l Jason Actin _iter Clerk NOTICES TO BE SENT TO: NOTICES TO BE SENT TO: CONTRACTOR: CITY OF RENTON: I Deborah H. Bovee Gary B. Lamb, Risk Manager Alliant Insurance Services, Inc. City of Renton 720 Olive Way, 17"' Floor 1055 South Grady Way Seattle, WA 98101-1862 Renton, WA 98057 206-204-9140 (telephone) (425) 430-7669 (telephone) 206-204-9205 (facsimile) (425) 430-7665 (facsimile) AP VED AS TO FORM: Renton City Attorney EXHIBIT A Entire proposal included here. 4 r te• Alliant Insurance Services is proposing a flat fee for all services outlined in the"Areas of Service" in the RFP. Alliant is offering three fee structures that are dependent on the lines of coverage that we handle for the City. • Option 1: This option contemplates all lines of coverage including the Liability coverages currently part of WCIA, Property Lines and all other lines enumerated in the RFP. The fee for services: $47,500 • Option 2:This option contemplates: • Full marketing of lines of insurance including the lines of coverage with WCIA. • Servicing and support of those lines of coverage brokered by Alliant. IF the City detennines that the Excess Liability will remain with WCIA but not the Property, our annual fee drops to$32,500. • Option 3:This option contemplates: Full marketing of lines of insurance including the lines of coverage with WCIA. Q Servicing and support of those lines of coverage brokered by Alliant. IF the City leaves the Liability and Property coverages with WCIA, our annual fee drops to $15,000. Alliant will commit to full transparency on all income. We will provide an annual accounting of any additional income received. For new lines of insurance, such as Cyber Liability, for example, Alliant would propose that we take commission (limited to 10%) for the first year on any new coverage lines. After the first year,the coverage would roll into your program and be covered by our fee. Public Officials bonds,if any,would be exclusive of our fee. We will guarantee our fee for three years. f w AUGUST 5, 2014 ALLIANT INSURANCE SERVICES, INC. 720 OLIVE WAY, 17TH FLOOR I SEATTLE, WA 98101 '� MAIN: (206) 204-9140 LICENSE NO. OC36861 I www.alliant.com RESPONSE TO REQUEST FOR PROPOSAL r RTYNCE BROKER OF RECORD,5:.. . Ldt Cover Letter Section III—Statement of Qualifications.............................................................................................5-20 A. Minimum Experience(Attachment A) B. Licenses(Attachment A) C. Errors and Omissions Insurance(Attachment A) D. Account Executives(Attachment A) E. List of Public Entity Accounts(Attachment B) F. References(Attachment C) G. Summary of Local Office Public Entity Volume(Attachment D) H. Additional In-House Services and Specialists iI. Organizational Charts ■ Section IV—Broker's Proposal...........................................................................................................21-47 ■ A. Areas of Service B. General Assessment C. Abilities ■ D. Innovation E. Special Qualities F. Fee Structure . G. Attachments ■ Appendix....................................................................................................................................................48 ■ A. Resumes B. Insurance Requirements in Insurance Contracts(IRIC Manual) C. Sample Loss Control Report: Review of Risk Management and Loss Control Practices ■ A' wool Ainant ■ ■ Affiant August 4, 2014 Mr. Gary B. Lamb Risk Manager 1055 South Grady Way, Room 726 Renton,WA 98057 Re: Request for Proposals Property and Casualty Broker of Record Services Dear Gary: Alliant is a full service insurance brokerage firm with the ability,resources and expertise to partner with the City of Renton to meet the objectives set forth in the"Areas of Service"by the City. The Seattle Alliant office will lead the servicing team for the City of Renton. This office is dedicated to public entities. Throughout our proposal we have addressed the proposed services and qualifications and believe that we meet and exceed the requirements. Alliant Insurance Services has grown to become the leading broker for public entities throughout the United States due to a firm culture that emphasizes customer service and public entity expertise. Our staff includes over 300 professionals who are dedicated solely to serving our public entity clientele. Our success has come from taking a focused, consultative approach,which we would utilize in our relationship with the City. Our thorough understanding of the public entity insurance business—combined with our focus on developing innovative programs which meet the special needs of public agencies— ensure that your organization will benefit from the most comprehensive service in the industry. We understand how public entities are perceived within the insurance marketplace and how the operating environment of the public sector shapes the risk transfer approach and requirements of these organizations. From joint purchase programs and risk-sharing pools to risk purchasing groups and non- insurance approaches,we have long been at the forefront of program design for public entities. With over $7.6 billion in premiums and premium equivalents placed,the public entity practice of Alliant is an industry leader in providing specialty brokerage services to the public sector. Areas of expertise include all of the services outlined in the RFP. With Alliant Insurance Services' wealth of professional expertise and our strong relationships with public entity insurers,we can tackle the brokerage challenges presented in any insurance market.Following are five compelling reasons for the selection of Alliant as your brokerage partner: 1. Relevant Experience with Worldwide Market Access The proposed service team includes substantial experience with public entity exposures. We provide brokerage services to hundreds of counties,cities, 70+Joint Powers Authorities and thousands of other public entities throughout the nation. Collectively Alliant provides services to over 7,000 Public Entity clients in over 48 states. Our team has many years of direct experience with programs very similar to the City of Renton both in scope and coverage. We will leverage the global insurance marketplace on your behalf. We work with both domestic and international insurance carriers on behalf of our public entity clients on a daily basis. Alliant Insurance Services,Inc.•720 Olive Street•17th Floor•Seattle,WA 98101 PHONE(206)204-9140•www.alliant.com•License No.OC36861 ■ mant 2. Professional Commitment and Stability Alliant has established an organizational culture that supports high energy,talented individuals. We have access to substantial brokerage resources without the red tape associated with other large brokerage firms. The Seattle office of Alliant works closely with our San Francisco and Newport Beach offices. The professionals included in the proposed service team all work within the same financial unit. As a result,the City will truly have access to all of Alliant's relevant resources without internal barriers. The Seattle, San Francisco,Newport Beach service team is committed to working with the City of Renton. This group regards working with the City as an exciting opportunity for our team members who are dedicated to providing the highest level of service and cutting edge insurance and risk management programs. 3. An Innovative and Highly Flexible Marketing Approach Alliant coordinates its insurance marketing efforts more effectively than our competitors to deliver the greatest impact in the delivery of insurance product value for our clients. Through the use of programs, support and assistance to public entities,the judicious use of our market clout and program design creativity,we will deliver"below market"cost solutions to our clients. Alliant has not, and will not support the concept of broker global marketing offices where your account is assigned to other central offices for marketing purposes. It has been and remains our belief that your account is best represented in the marketplace when the individuals most familiar with the account are the ones who also represent it directly to the market. We also strongly encourage customers to be actively involved in this process,and to use the marketing process as an opportunity to develop direct relationships with your underwriters. 4. Fair Compensation We believe in transparency and full disclosure.We are proposing a fee on your account and will report any commissions earned and credit all commissions. We will also report who is working on brokerage activities, and what types of activities they are performing. In this way,we are able to document our effort to ensure that our compensation is fair from both parties'perspective. 5. Integrity and Professionalism We are prepared to be held to the highest standards of integrity and professionalism. We recognize the importance of our role in representing the City to the insurance underwriting community.We understand that public entities have long memories,and we know that our reputation is our most valuable corporate and personal asset. Although we work with many public entities,we regard each client relationship as unique and we would approach our relationship without any preconceived notions as to how best to serve your needs. We encourage you to investigate our references which we believe are our strongest means of advertisement. Throughout this response we will focus on our expertise and proprietary products which we believe will offer City of Renton a wide array of funding options while improving the coverages and terms currently available to you. Alliant Insurance Services,Inc.•720 Olive Street• 17`E Floor•Seattle,WA 98101 PHONE(206)204-9140•www.alliant.com•License No.OC36861 Affiant We strongly believe that we are the best option for the City of Renton and welcome the opportunity to demonstrate our capabilities to you. Sincerely, Thomas P. Long,Jr, CPCU, ARM-P,RPLUDebora&OV14 {CP U AlRM-P First Vice President �st Vice President Alliant Insurance Services, Inc. Alliant Insurance Services, Inc. tloni@alliant.com dboveeAalliant.com (206)204-9143 (206) 204-9173 l � Brian White First Vice President Alliant Insurance Services, Inc. bwhite n,alliant.com (206)204-9126 Alliant Insurance Services,Inc.•720 Olive Street• 17t'Floor•Seattle,WA 98101 PHONE.(206)204-9140•www.alliant.com•License No.OC36861 ,■... h� SECTION III: STATEMENT OF QUALIFICATIONS f A. Have a minimum of five year's experience as a public entity insurance broker (see Attachment A). B. Possess the necessary licenses for an insurance broker in the State of If ashington (see Attachment A). C Have Brokers'Errors & Omissions insurance coverage with limits not less than S5,000,000. Provide evidence confirming coverage(See.4ttachmentA). D. Demonstrate an ability to assign a minimum of two(2) qualified account executives to the City of'Renton account(one primary and one secondary), who shall be responsible for responding to requests for information, attend meetings, and be available during normal business hours to address the issues and activities associated with this account, as well as other duties as requested. Each account executive should have a minimum of ten years'experience in commercial lines, with a preference that each account executive possess the ARAI and/or CPCU designation or similar credentials. Provide the service assignments, responsibilities, and resumes of Account Executives and assembled Service Team Members (including any sub-contractors0 assigned to work oil the City of'Renton account(see Attachment A) . Attachment A INSURANCE BROKERAGE FIRM QUALIFYING QUESTIONNAIRE ■ DATE August 4,2014 ■ 0 NAME OF FIRM Alliant Insurance Services,Inc. ■ ADDRESS 720 Olive Way, Suite 1700 ® Seattle,WA ZIP 98101 • DATE ESTABLISHED_ 1925 (Corporate),2006(Seattle) PHONE 206-204-9173 ® • NUMBER OF YEARS OF PUBLIC ENTITY BROKERAGE EXPERIENCE OF FIRM: 50+ • STATE OF WASHINGTON LICENSE: MANAGING BROKER OR FIRM LICENSE NUMBER See Attached EXPIRATION DATE 11/30/2014 • BROKERS ERRORS AND OMISSIONS COVERAGE (provide a certificate of insurance): r COMPANY See Attached LIMITS $10.000.000 • ANNUAL COMMERCIAL PREMIUM VOLUME (EXCLUDING PERSONAL LINES, BONDS, LIFE AND HEALTH) OF THIS FIRM: ALL COMMERCIAL BUSINESS: $ 35,000,000(Seattle Office Only) PUBLIC ENTITY BUSINESS: $ 100% • NAMES OF DESIGNATED ACCOUNT EXECUTIVE(S), SUMMARY YEARS EXPERIENCE IN . COMMERCIAL LINES AND PROFESSIONAL QUALIFICATIONS (certifications, WA insurance license number, major accounts managed, resumes, etc.) 1. (Primary Account Executive) Thomas P. Long,Jr.,CPCU,ARM-P,RPLU, 30 Years (+) 2. (Secondary Account Executive) r Deborah Bovee, CPCU,ARM-P, 30 Years(+) 3. (Service Team Members) Brian White, 10 Years (+) ...� COMMENTS: Tom,Deborah and Brian are public entity specialists. They are supported by five additional colleagues in the Seattle office and have complete access to other Alliant Public Entity specialists. They handle some of the i largest public accounts in the state of Washington and look forward to bringing their focus, energy and expertise to the City of Renton r� 16 i ` Visit our website at www.insurance.wa.gov 97 You will find news releases, advisories,administrative actions and information regarding consumers, insurers and licensees. 7 +�• Licensee/Insurer lookup program that allows you to check the status of any license, appointment or affiliation. i • Licensing information containing instructions,forms and fees for all types of licensees and information for CE providers. Online Services: • o For Licensees 97 Individual-Must register/login Business Entity—Must register/login • License renewal • License, affiliation and branch renewal '7 • Change address, name or DBA • Change address, name, branch or DBA 07 • Print license(s), appointment(s)or affiliation(s) • Print license(s),appointment(s)or affiliation(s) • View education history or current profile • View pending online request • View pending online request • Add or cancel an affiliation 17 • Add a new license type • View current profile 47 • Reinstate or reapply for a previous licensee • Print unpaid invoice Update CRD#to add Variable LOA • Reinstate or reapply for a previous licensee • View list of appointments&affiliations • Update CRD#to add Variable LOA • View list of appointments&affiliations o For First Time Applicants-individuals and business entities can submit and track their online applications. If you have not registered to use our Online Services,you may request a registration letter by calling 360-725-7144 or by emailing 1 licinfo@oic.wa.gov. NOM I Beginning June 1,2011, renewal notices will be emailed to your registered email address 45-60 days prior to your license expiration date. It is vital that you maintain your current email address. *W If acting in a broker capacity, please note that a producer is required to have a bond in place prior to placing business. 7New rules which affect your insurance license–Licensing must now be done online! 7Check out the new rules at:www.insurance.wa.gov ,then select the Agents/Brokers tab,then select the"Attention Licensees"icon. 07 A� of OFFICE OF THE INSURANCE COMM1SSIONI * * * INSURANCE PRODUCER LICENSE "rWAOIC # 259667IE LICENSEE IS AUTHORIZED TO SELL THE FOLLOWING T NES OF INSURANCE: EFFECTIVE 07/01/2009 r`operty, Casualty, Life, Disability EXPIRES 06/16/2014 ALLIANT INSURANCE SERVICES INC . THIS LICENSE,MUS BE ACCOMPANIED BY A CURRENT P.O. BOX 120670 ALOINTEA R REPRESENTED AND AN wfSAN DIEGO CA 92112 - � LLPRES JNGS �1tJa�I �S �IITY. f v FAL .. , � x , AN E CO MISSI ER i ALLIHOL-01 CDAMIANI ACORO CERTIFICATE OF LIABILITY INSURANCE FDAT D/YYYY) 7//14/214/2 014 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. T IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT NAME: cdamiani@alliant.com Vew York-Park Ave-Alliant Ins Svc Inc PHONE 'P9 Park Ave A/c No Ext): ac No): Suite 1910 E-MAIL New York,NY 10016 ADDRESS: INSURER(S)AFFORDING COVERAGE NAIC# INSURERA:AIG Specialty Insurance Company 26883 INSURED INSURER IS: Alliant Holdings I,LP INSURERC: 1301 Dove St Ste 200 INSURER D: Newport Beach,CA 92660 INSURER E: INSURER F COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDLSUBR POLICY EFF POLICY EXP LTR POLICY NUMBER MM/DD MM/DD LIMITS COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ CLAIMS-MADE OCCUR AMA PREMISES Ea occurrence $ MED EXP(Any one person) $ PERSONAL&ADV INJURY $ GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ PRO- POLICY JECT �LOC PRODUCTS-COMP/OP AGG $ OTHER: $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ Ea accident ANY AUTO BODILY INJURY(Per person) $ ALL OWNED SCHEDULED BODILY INJURY Per accident $ AUTOS AUTOS ( ) NON-OWNED PROPERTY DAMAGE HIREDAUTOS AUTOS Per accident $ UMBRELLA LIAB OCCUR EACH OCCURRENCE $ EXCESS LIAB CLAIMS-MADE AGGREGATE $ DED RETENTION$ $ WORKERS COMPENSATION PER OTH- AND EMPLOYERS'LIABILITY Y/N STATUTE ER ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? N/A E.L.EACH ACCIDENT $ (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ A Prof.Liability 16150108 12/15/2013 12/15/2014 Each Claim/Aggregate 10,000,000 f &'TA 16150108 12/15/2013 12/15/2014 Retention 1,000,000 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) This is a Claims Made Policy. L CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE City of Renton THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 1055 South Grady Way ACCORDANCE WITH THE POLICY PROVISIONS. Room 726 Renton,WA 98057 AUTHORIZED REPRESENTATIVE ©1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25(2014/01) The ACORD name and logo are registered marks of ACORD rr• RESPONSE TO REQUEST FOR PROPOSAL Itr.� PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION III- STATEMENT OF QUALIFICATIONS E. Demonstrate experience of thefirm with major Kashington public entity Provide r broker handles, r principal addresses,and client names, entail , numbers. accountdescription of'atky insuranceplacements or support service thatyou have includingr State of Washingtonof Coverage) Account Executives: Deborah Bovee, Tom Long, and Brian White rl.. Dates of Service: January 2014—Present Contact Person: Lucy Isaki (360) 407-8143 lucy.isaki@des.wa.gov Comments: Alliant was appointed as the sole broker of record for the State of Washington in January, 2014. The State has the majority of their insurance placements renewing on July 1. Alliant has brought a number of improvements to the State's program in the short time that we have been their broker. Some of the notable changes are: Property: The State had four separate major property placements with insured values in excess of$6 billion. We approached our first renewal with the following goals: Consolidate coverage(if possible) Improve coverage and streamline administration Reduce rates ,..1 Our results were outstanding. We were able to eliminate one major placement along with several small policies and eliminated many reporting requirements. By restructuring the placements, Alliant reduced the property rates by an average of over 20%. .. Aviation (Airports and Aircraft): The State had two aircraft policies and an airport liability policy covering a number of State owned airports. Alliant closely reviewed all of the placements and after consultation with the State and the various departments, we offered: ir. o Higher liability limits options on all aircraft and the airports Consolidated the placement ..r Offered Hull& Machinery options for the aircraft � bw RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION411: STATEMENT OF QUALIRcATioNs ■ Cyber Liability: The State of Washington wants to pursue an enterprise Cyber Liability program. With over 150 separate departments and many types of data, this is a complex project. Alliant is working closely with the State and the world market to craft a program. The complexity ® of this program is both challenging and exciting. ® ■ PEPIP Cyber Liability: As part of the marketing process, the State has determined that their Master Property program will move to PEPIP, Alliant's proprietary Property program. This program has extremely broad coverage and sublimits as well as a number of coverage extensions. t One of the more critical extensions is coverage for both first and third party damages caused by a cyber breach. This coverage has a $2,000,000 limit AND is provided without any special �n. application. Given the complexity of the State operations and the long underwriting process, securing this .�. coverage on a blanket basis has been an important coverage enhancement for the State of Nr.. Washington. .n. King County (All Lines of Coverage) Account Executives: Deborah Bovee, Tom Long, and Brian White Dates of Service: May 2004—Present r.. Contact Person: Jennifer Hills, Risk Manager (206) 205-1649 jennifer-riskmt.hills@kingeounty.gov Comments: The King County account is complicated, diverse and requires a breadth of knowledge that ■ matches their diverse exposures. In the ten (plus) years that we have handled the County's account, we ■ achieved the following accomplishments: ■ Excess Liability: The King County Excess Liability placement is a manuscript policy that rr.. encompasses most of the County's liability placement. It is a reinsurance placement that requires an understanding of both the reinsurance market and the direct insurance markets. This placement utilizes the world marketplace. In a time when excess liability premiums were increasing, the ■ King County Team has been able to: ■ . Bring new underwriters to the placement Preserve the broad, manuscript coverage Manage self-insured retentions ■ Excess Workers' Compensation: When the King County Service Team assumed responsibility ■ for the County's Excess Workers' Compensation placement, the Self-Insured Retention was ® - 7- AtAl Iant wtr boo RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION III: STATEMENT OF QUALIFICATIONS $5,000,000. One of the major goals of the Risk Manager was to lower this retention and lower the premium. These were ambitious goals since the insurance marketplace for statutory workers' compensation on a major public entity with large concentrations of employees is extremely E narrow. There were really only two markets that could provide this type of coverage and one of i■� them was the incumbent. After a complete review of the losses and a comprehensive marketing effort,the County's Team was able to lower the Self-Insured Retention to $2,500,000 and met the premium goals of Risk Management. Over the past five years, we have continued to bring competition to this segment of the County's program. ■ Brightwater Sewage Treatment Plant Project ($1.9 Billion): The Builders Risk for the Brightwater project continues to be challenging. Alliant works directly with underwriters to assist in the resolution of complex issues. Alliant also assists the County on the Project Professional Liability for this project. These placements require the worldwide marketplace and specialty expertise. ■ Enterprise Cyber Liability Program: King County is pursuing a Cyber Liability program that will encompass the County's diverse exposures. Alliant is an active partner with the County. To date, we have secured attractive primary Cyber Liability terms and are building excess coverage. This project has required an extensive analysis of their complex cyber exposures along with an understanding of the available capacity.Alliant has marketed this coverage both domestically and in the London marketplace in order to secure the necessary capacity. ■ Boeing Field: As the second largest airport in King County, Boeing Field has a number of Ndifferent challenges: contract language with tenants, special events (an airplane pull!) as well as the largest third party claim in the history of Ace Insurance Company's writings of aviation insurance! Alliant works closely with Risk Management to address all of these issues. One concern that arose several years ago was how the airport could purchase meaningful Earthquake coverage for their runways. Alliant's solution was to purchase a separate tower of All Risk coverage including Earthquake and Flood through PEPIP with $50,000,000 dedicated limits of Earthquake coverage for Boeing Field. This was accomplished at a .11¢ rate and a `per unit' deductible that satisfied the County's concerns. _$_ AA4lliant RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES NOW- IL SECTION QUALIFICATIONSNO Pacific Northwest Port Association (PNWPA) Account Executives: Deborah Bovee, Tom Long, and Brian White Dates of Service: January 1996 to Present Contact Person: Chris Johnson, Port of Anacortes (360) 299-1800 rr johnson@portofanacortes.com "■■r Comments: The Pacific Northwest Port Association is part of an Alliant Insurance Services Risk _ Purchasing Group. This Group meets quarterly to discuss Risk Management issues. The Group has a broad, manuscript property form tailored specifically to port exposures. Each member purchases a separate tower of Earthquake and Flood coverage that totals over$450 million in Earthquake limit. The liability form for the ports is a hybrid, manuscripted marine and non-marine form. This form includes coverage for shoreside liability as well as Wharfinger's Liability, Protection & Indemnity, Charterers Liability and other key marine coverages. r The Ports each purchased $50,000,000 Excess Limits of Liability. This placement requires Alliant to access the world market both domestic and European capacity. L Port of Taconia LAccount Executives: Deborah Bovee and Tom Long Dates of Service: December 1995 to Present ■ Contact Person: Lou Paulsen, Risk Manager (253) 383-9449 1paulsen@portoftacoma.com min Comments: The Alliant Team places all lines of insurance for the Port of Tacoma. Some of the .r noteworthy placements: Excess Liability: $150,000,000 excess of retentions that includes coverage for: ■ o General Liability including Products and Completed Operations Marine Liability including: Terminal Operators Liability, Wharfingers Liability, "'�' Protection and Indemnity,USL&H Liability, Stevedore's Liability RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION III.- STATEMENT OF QUALIFICATIONS Pollution Liability; Sudden and Accidental Automobile Liability Foreign Liability ■ Property Insurance: Covering all operations including Builders Risk for all projects up to $25,000,000. The Port of Tacoma's Property program includes $2,000,000 coverage limits for first and third party Cyber Liability coverage. This coverage is part of Alliant's proprietary property program, PEPIP, and provided to the port without a separate Cyber Liability application. ■ Fidelity Bond: This is a coverage that does not get a lot of examination. However, with cyber hacking and fraudulent wire transfers, this is no longer a simple coverage. The Port of Tacoma �... purchases $2.5 million limits that includes: Faithful Performance of Duty, Fraudulent Wire Transfer coverage, as well as many other extensions in coverage. City and Borough Account Executives: Deborah Bovee and Tom Long Dates of Service: 1978 to Present r... Contact Person: Jennifer Mannix, Risk Manager �.. (907) 586-0323 i jennifer—mannix@ci.juneau.ak.us rw Comments: The City and Borough of Juneau is the third largest city in Alaska. It has significant, diverse exposures that include: ban ■ A major hospital +� 0 Port and Marina with Cruise Ship Docks bm ■ Major Airport ■ Ski Resorts r.. ■ Fire and Police Departments ■ Transit System Their Excess Workers' Compensation placement is a major issue due to these exposures as well as a large .r police and fireman population. This placement includes all of the Federal coverages as well as State Act. i � Affiant ,.n fir. RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION III: STATEMENT OF QUALIFICATIONS LW City of Kent ® Account Executives: Deborah Bovee, Tom Long, and Brian White Dates of Service: 2007 to Present Contact Person: Chris Hills, Risk Manager (253) 856-5285 1W Comments: The City of Kent had been a long-time member of the Washington Cities Insurance Authority (WCIA), but had outgrown them. With a $100,000 liability deductible (now a $250,000 Self- Insured Retention), they were paying all of the claims under their deductible, but with no control on how those claims were handled. Kent's property insurance was not through WCIA, but placed separately by a local broker. • Excess Liability: As a member of the WCIA pool, Kent had to proceed cautiously to involve Kent's leadership in the decision to change, follow the requirements for proper withdrawal from the pool, and put the services in place to move to a sophisticated Risk Management structure involving a large Self-Insured Retention,the execution of an RFP for a Third Party Administrator (TPA) for claims, and purchasing adequate Excess Liability Insurance. Alliant worked with the ■ City of Kent every step of the way: 0 Alliant participated in meetings with the Mayor, City Attorney, Chief Administrative Officer and Chief Financial Officer to outline the reasons for moving from the pool. ■ 0 Alliant marketed their Excess Liability coverage to multiple markets, and helped design a ■ liability form that was more advantageous, and more competitively priced, than that offered by the WCIA. ■ . Alliant helped coordinate an RFP for a TPA for liability claims handling. ■ 0 Alliant helped the City of Kent implement a more aggressive Risk Management Program, including training classes on Contractual Risk Transfer. Today, Kent stands with the likes of Bellevue, Everett, Vancouver and Bellingham as a large ■ public entity with a Self-Insurance program that includes adequate Excess Liability coverage and proper claims handling. ■ Property: City of Kent had their property coverage with Affiliated FM, but in 2012 Affiliated FM non-renewed all of their PNW public entity business due to earthquake risky accumulations. Alliant was able to restructure Kent's property insurance in order to maintain adequate ■ Earthquake and Flood limits, including the new ShoWare Stadium. ■ Excess Workers' Compensation: Kent's Excess Workers' Compensation has been with the same carrier for years. Recently, that carrier has brought pressure to raise the retention and - 11 - Alliant RESPONSE TO REQUEST FOR PROPOSAL 1rlf PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES IL SECTION III: STATEMENT premiums. To keep the retentions and pricing in check, Alliant obtained alternative proposals from competing markets. This kept the incumbent carrier in check, while maintaining the long- standing relationship with the carrier. Further, Alliant was able to negotiate several coverage enhancements with the incumbent carrier that had not been included by the prior broker. ■ Crime Insurance: Kent's Crime insurance is placed with Alliant's proprietary Public Entity Crime Insurance Program. Not only is this program more competitively priced than other public entity crime insurers, coverage has been broadened in several key areas: a Faithful Performance is included for all employees. Coverage voidance for past infidelities is only applicable if the loss was greater than $25,000. ad Coverage includes credit or debit card forgery. a Volunteer workers are covered as employees. This coverage has been shown to be an acceptable replacement for the many Public Officials kw Bonds public entities have been purchasing in Washington State. Washington Pool Account Executive: Brian White Dates of Service: Alliant: January, 2002—Present, Brian White: Spring, 2012 - Present Contact Person: Allen F Hatten, Executive Director Olympia, WA 98502 N (Office) 360-786-5004 ■ Comments: WSTIP is an insurance pool covering all public transit systems in the State of Washington except for King County Metro and Sound Transit. The pool provides all major lines of coverage to its members, including property and liability, in addition to loss control, risk management, and claims services. Alliant handles all brokerage work for the pool, and also provides Insurance Requirements in ■ Contracts review, coverage analysis, and claims resolution support. As WSTIP's broker for more than 12 years, we have achieved many accomplishments along the way; however, the following stand out as ■ notable undertakings: L.J ■ Property: During the 2012/13 property renewal cycle, at a time in the market when average rates were increasing,Alliant was successful at completely restructuring the placement to achieve the following improvements: . Reduction in the Self Insured Retention on both their property and automobile physical damage covers from$500,000 to $250,000; - 12 - 441hant a� RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION III: STATEMENT OF QUALIFICATIONS 4. 0 14%composite rate reduction; a Secured automobile physical damage coverage on a replacement cost basis for busses 10 years old and newer. This is a critical enhancement for transit systems given the high cost associated with replacing damaged vehicles. a WSTIP sustained a $7M+ loss three years ago at a member's location with a Certified Natural Gas facility. At that time, we strategically placed the CNG locations with a ■ separate carrier to"ring fence"the effects of that particular loss. Just one year later, at the 2012/13 renewal, we negotiated the re-inclusion of this location to the "All Risk" placement at the average account rate and eliminating a somewhat expensive separate policy. We were able to do this by explaining to the underwriters the loss control steps the insured had taken to prevent similar losses in the future, as well as report on the ■ successful subrogation efforts our client had taken in minimizing the actual loss sustained by the carrier. ■ Liability: Because of our extensive work with public entities we have recognized tY p several ■ opportunities in the liability marketplace to maximize the benefits of this insurance placement on ■ behalf of WSTIP over the years. These include: Multi-year policy arrangements: These arrangements are not common in the public . entity space because carriers resist offering them. However, by demonstrating WSTIP's excellent claims handling skills, loss control and the trust and rapport they have with their members, we have successfully negotiated market competitive multi-year policy ■ arrangements on their liability program. This has helped the pool achieve long term placement and budget stability,which is important to the group. Aggregate Retentions: a valid concern with self-insurance is the exposure one has to ■ multiple occurrences in a single year. One of the ways in which this can be addressed is by establishing an annual aggregate limit on the amount of the retention an insured pays ■ in any one year. Carriers typically resist offering these at a level that appears attractive from the insured's perspective. However, we have successfully negotiated aggregate retentions for WSTIP at palatable levels. We are grateful to call WSTIP our client and delighted that our strong relationship was recently affirmed by the award of a new five year service agreement. I� ■ - 13- AAk 11an t i RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION III: STATEMENTOF QUALIFICATIONS North District Account Executives: Brian White .r Dates of Service: June 2007 to Present Contact Person: Byll Shelton, Insurance & Risk Management Specialist ... bshelton(a,nctd.org (760) 967-2847 Comments: North County Transit District is a major California transit system that includes both heavy Land light rail and buses. Alliant handles all lines of coverage for NCTD. The Alliant Service Team has been successful in making continual enhancements to their risk management and insurance program. . These include major improvements to the Excess Liability program: ■ ■ Negotiation of an end of year premium audit waiver, saving NCTD approximately$64,000; ■ Incorporation of a new liability market to NCTD's excess program resulting in a $20M increase for limits of liability related to bus losses, at no additional cost; ® ■ Negotiation of an aggregate limit reinstatement clause at no additional cost for rail losses in the $40M x $60M layer; IN ■ Negotiation of Terrorism cover in the$40M x $60M layer for a negligible premium amount; ■ Addition of an entire Light Rail Line at no additional premium; ■ Introduction of new market capacity resulting in 2 year rate agreement and doubling of quake and +� flood limits at a premium reduction over expiring. bw Water and Sewer Risk Management Pool (WSRMP, All Lines of Coverage) hu. Account Executives: Brian White �.. Dates of Service: June 2005 to Present Contact Person: Ken Goodwin, Executive Director (425) 452-9750 keng(d,wsrmp.org kim Comments: WSRMP is an insurance pool covering 75 water and sewer districts in the State of Washington. The pool provides all major lines of coverage to its members, including property and liability, in addition to loss control, risk management, and claims services. Alliant handles all brokerage "�' - 14- Affiant L L RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES % SECTION III: STATEMENT OF QUALIFICATIONS ■ work for the pool, and also provides Insurance Requirements in Contracts review, coverage analysis, and INclaims resolution support. . Alliant has helped the pool in many ways over the years to stabilize and control premium, and enhance coverage in many of the same ways we have demonstrated for the previously mentioned clients. Additionally, for this particular client a recent success story was our help in addressing unique coverage needs. One of the pool's prospective members was not able to secure affordable dam failure liability •.. cover. While the pool wanted to attract this new member by helping them achieve their coverage goals, 6 they did not want to put the pool's assets at risk for an exposure that was unique to one member. LRecognizing these two important goals we first successfully negotiated with the pool's reinsurance carrier to provide a meaningful amount of the needed coverage for only $5,000 in premium. It was not an easy "sell", but the reinsurer ultimately agreed to do it as an accommodation in looking at the pool account as a whole, rather than just a need of one member. Secondly, to limit the pool's exposure to this particular w risk, we helped them craft a special amendment to their memorandum of coverage ensuring that the Lmember would bear the retention in its entirety. r.. As a result, the pool client was happy to have a new member, and the member was happy to have Lcoverage they needed but otherwise could not afford. Ultimately the reinsurer was also pleased as it helped them solidify their relationship with the pool. L L L N N ■ - 15- )Affiant RESPONSE TO REQUEST FOR PROPOSAL Mill PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION III: STATEMENT OF QUALIFICATIONS — F. Pi-ovide ri�f�i-ences that include a list oj'all major accounts cui-rentlj,being handled bj,the account executive to be assigned to the City account, ",ith contact names, email addresses, and telephone numbersjbi.each acco unt (see Attachment C). ACCOUNT EXECUTIVE NAME/ _ Deborah Bovee,Torn Long, Brian White ACCOUNT State oYWashington 12/2013 Present Lucy |saki/3G0-4O7-8143/|ucyisaki@des.wm.guv King County U8/2OD6' Present Jennifer Hills/2U0-2U5-1S49/jenniferhi||s@kmgcnuntygov Bellevue School District U5C200S - Present Melissa deVka/425-458-4O25/cevi!am@bnd4D5org City ofKent D2/2O07 ' Present Chris Hills/253-86S-5285/chiHo@kent.wvagov KitsapCoun\y O6/2O10-Present Tim Perez/38O'337-44U8/tperez@co.ki$up.mmoo Renton School District O5/20U0'Present JmhnKnutzon/425-2O4-2387/johnknutoen@rentonyohnu|s.us City& Borough ofJuneau O5/2OUG-Present Jennifer K8annix/8O7'S8O-O323/jennifo[_mmnnix��cijuoeau.ah-us CbymfRmtchikon O7/2OU7 'Present Robe�NevveU/8O7-225'3111x313/bobn@city.k,tchikmn-mkus =w� Ke1ehikanGateway Borough 05/2UOS 'Present Mike Houts/8O7-228'6G25/mikeh@kQbakus City ofSt, Poul O5/2O0S ' Present Cathy VVujtonke/8O7-546'3129/cathi@atpau|akcom Port wyTacoma 1O/2OO8 ' Present Lou Paulsen/253-383'8440/|pnu|»en@purtohacomacom Pacific Northwest Ports OS/2OO8- Present Scott Goodrich (Port ofVancouver)/3GD-518'5884/ Assoc. sgwodri«h@podvanuyacom Golden Gate Bridge District 11/2O08 'Present Bill Stafford/415-257-4552/bs1aMonj@go|dengateurg Washington State Transit U1/2UO2 'Present Allen Hotten/3GU'780'5OU4 =�m Insurance Pool North County Transit District OS/20O7 - Present 8yUShelton/7GO-0G7'2847/bshehon@ncVdorg Water and Sewer Risk 06/2005 Present KenGoodwin/425'452-075O/keng@wynnp.org Management Pool - 10 - �~ ~���K������ �W� ! �Q� � mm�m 1W RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION III- STATEMENT OF QUALIFICATIONS kv each of these categories, the premium volume and the number o oliciesin Prce (,see,4ttachinent D). fp +•• The Seattle office of Alliant is 100% public entity focused. All of the premiums shown are public entity based. Alliant, nationally, has over 38% of its revenue in Public Entity accounts. We specialize in your ... business! Because of this focus, we bring tools that are not available at the largest brokers in the world: programs designed specifically for major public entities. Please see Attachment D on the following page. Alliant Insurance Services brokers all lines of coverage ■ (including Employee Benefits). We have"rounded"the premium numbers. N ■ Affiant I RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES % SECTION III: STATEMENT OF QUALIFICATIONS Attachment D bd SUMMARY OF COMMERCIAL PREMIUM VOLUME ■ FIRM„ Want Insurance Services,Inc.-Scattle Office Ono ■ (L.00AL OFFICE ONLY) ■ ■ ALL CLIENTS ALL CLIENTS PUBLIC ENTITY ONLY ■ NUMBER of ,4NN'lJA1, RE�IlVtj,,5 14UMBER OF ■ POLIQES (ROL,'IVDED) POLICIES/ ANNUAL PREMIUM ■ COMMERCIAL GENERAL ■ LIABILITY 52 S5,000.000_ 52/ 100% ■ UMBRELLA OR EXCESS LIABILITY 125 $16>OOO,OGO _ 1j 1(10°e ■ ® PROPERTY 120 $14..000.000 _ � 120.11t)tl°o ■ (FIRM TOTAL ONLY) ■ ■ ALL CLIENTS ALL CLIENTS PUBLIC ENTITY ONLY ® NUMBER cf WN-Q&L,.RLKl..vms- NUMBER OF POLICIES (ROUNDED) POLICIES/ ANNUAL PREMIUM COMMERCIAL bon GENERAL LIABILITY 520 51B 220 / 53$0,000,000 ■ UMBRELLA OR EXCESS LIABILITY 900.._... ..,.�, S?Bf900,{#W000 ® PROPERTY (APIPOnty: Indurles PEPIN t� ■ ■ - 18- AAlliant ■ am RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION III: STATEMENT 11. Prol'ide a list o additional in-house services andspecialists, �rith their qualifications, available to support the needs ol'a large,public sector account. Alliant has a full array of public entity specialists and programs to support a large public sector account. Please see the following Service Matrix. The major differentiator between Alliant and our competitors is our focus. With over 38% of our revenue derived from Public Sector accounts, our programs and +.. specialists are tailored to your issues, needs and concerns. Alliant Full Service and Resource Matrix for the City of Renton Services Alliant Environmental n, Construction Strategic Seattle Risk Services Risk Financing Services HR Claims Management ✓ ✓ .� Construction Risk ✓ ✓ Management Contract Administration and ✓ ✓ Certificate Review* Decision Support, Data ✓ Management& RMIS .r Environmental Risk ✓ ✓ Management Marketing ✓ ✓ ✓ Reinsurance ✓ son Risk Control ✓ ✓ Service/Administration ✓ ✓ .... Surety ✓ �. Fleet Management ✓ Student Accident/Athletic ✓ ✓ Sports Specialty ✓ Special Events ✓ Human Resources ✓ Consulting r..r *In Appendix B,we have provided a copy of the Table of Contents for Alliant's Insurance Requirements in Contracts(IRIC) manual. This manual is regularly updated and enjoys broad use by our clients. SECTION III. STATEMENT OF QUALIFICATIONS I. Provilte alx organisation chart v ft•vur'fil•In, inclrrllilr�the Ivcal offrce alxd the RESPONSE TO REQUEST FOR PROPOSAL low PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES nrllivlltuals Irll•otvert nr serviclrlg the CIt3•'s account. Primary Team Deborah Bovee Thomas Long Brian V6'hite First Vice President First Vice President First Viee President Co-Team Leader Team Lender Lecrrt/P&C Stri�port Seattle, WA Seattle,WA Seattle, WA Vic'Holaday Account Executive': Accaurrt Lead '�� Seattle, WA j Conni Scott Joyce Dorland Account Manager Account Representative '' S1a�yort Str��ort Seattle, WA Seattle, WA Resources PresidentRobert Frey Daniel Howell Thomas Bryson Brent Escoubas First Vice - VP Senior • PresidentClaims Consulting Peer Review i i Control San Francisco, CA L San Francisco, CA Newport Beach, CA Newport Beach, CA -20 - A) Affiant WIN- Rr ''INSE TO REQUE POSAL PROPERTY&CASUALTY 1 RECORD SERVICES k Im 4. A reas of Service clients and an explanation of%,hat distinguishes yourfirin fiwin others in ineethtgq the service • ■ needs ' cover to represent the proposingfirm and to enter into a legal contract shall be included. 1. BROKERAGE SERVICES ■ Our cover letter is included towards the beginning of our response to this RFP. Alliant will perform all of ■ the services enumerated in the RFP. ■ Approximately 38% of our corporate revenue and 100% of Seattle's revenue comes from public sector accounts. The self-insured retentions that we work with in just the Seattle office range from $10 million ® each and every occurrence, down to several accounts with low deductibles. So, we have experience with the full range of self-insurance. As a specialty broker in the public sector, we have developed a process to address the delivery of Brokerage Services on a consistent basis across our client base. ® Through our years of experience, we have obtained valuable resources and the experience to formulate a service plan that works for each individual client. Our process is customized to each client. We know that "one-size does not fit all." Our uniqueness lies in our Defined Client Service and Marketing Process. To ® make this all happen, our service team is available 24/7 to help you plan the best service and product for your needs. Our Defined Client Service and Marketing Process, a technical practice we employ with all our clients, is ® the framework for our business approach. Purposefully, this process begins with transition planning, and ® includes an in-depth risk management analysis, in addition to service and marketing activities. This approach provides consistency in quality service, checkpoints and timelines for monitoring our jointly agreed upon service standards, and ensures the appropriate planning occurs well in advance of the ® expiration date. We will work closely with City of Renton to ensure that this process aligns with your goals. In addition, we use Quality Committees to continuously monitor the implementation of these best ■ practice standards. ® -21 - _ ",ant RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV: BROKER'S PROPOSAL r ,P. LWhat follows is an illustration of this process, with each step containing a detailed explanation along the way. As we base our proprietary Defined Client Service and Marketing Process on our "Risk on a Broader Perspective"philosophy, we are confident in saying that we know of no other broker that adheres ■ to such a process as vigorously as Alliant. Transition & Risk& Renewal Underwriting Underwriter Analysis Coverage Strategy Process Meetings i80 da vs prior to renewal f1210 days prior to renewal 100 days prior to renewa! 75 days prior to renewa! 75 days prior to renewal IWO L SteLw*dshlp Summaribs Binding Renewal Negotiations & Planning Open ItemsJDocuments Analysis Prior to renewal Prior to renewal Prior to renewal 30 days prior to renewal 60 days prior to renewal L L LOnce appointed as City of Renton's Broker of Record, we will begin to transition the work flow from ru. your current broker(s) to Alliant. Given the absolute importance of a successful transition for each new Alliant client, we will employ the following steps during the implementation of the program to make the Ltransition as seamless as possible for City of Renton. LStep 1: Identify Appropriate Personnel and Discuss the Defined Service and Marketing Process L ■ Identify individuals who will be involved in the transition from Alliant and City of Renton. MW ■ Discuss Defined Service and Marketing Process and tailor it to City of Renton's unique needs. ■ Facilitate dialogue between key personnel at Alliant and City of Renton; including claims, loss Lprevention, accounting,board members, etc. frn Build an Open Items List that will encompass all open and on-going items as well as any technical policy issues identifies as a part of our policy review. _ -22 - AAffiant rw RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV: BROKER'S ® s ®P r� i Step 2: Notify Carriers ■ Alliant will prepare Broker of Record Letters (BORs) for City of Renton and then file it with the appropriate carriers. ■ Confirm acceptance of all BORs filed. Step 3: Information Gathering/Data Acquisition ■ Financial statements ■ Draft submissions ■ Audits ■ Exposure data ■ Actuarial studies ■ Historical Policy Digest ■ Bylaws ■ Policies/Summaries o... ■ Claims data ■ Schedules or other data elements Step 4: Administrative .� ■ Further develop annual work plan to include all key stewardship tasks/dates/milestones. ■ Develop protocol for execution of all key deliverables. ■ Identify and plan for any other key administrative tasks as defined by City of Renton. """ ■ Provide laminated team charts/contact cards. ■ Execute service agreement. Step 5: Risk Identification i ■ Review all data accumulated from the information gathering/data acquisition process. ■ Discuss with key operational personnel(operations, finance, legal, quality, risk, claims). • Strategic discussions regarding mission, key initiatives, short- and long-term operational and financial goals, unique financial issues, and risk philosophy. ■ Discuss unique claims or risk issues as defined by City of Renton .r Step 6: Documentation and Implementation ■ Prepare a summary report detailing the process, observations, and key findings. an. ■ Review summary document and confirm findings. ••• ■ Develop renewal timeline in conjunction with the Annual Work Plan. r.. Our service team will coordinate these activities to help ease the administrative burden on the City. Our priority is to become intimately familiar with your overall insurance program and unique loss exposures. Therefore, we will get to know the City through a thorough review of your website, financial statements, and loss runs; an analysis of your policy language and coverage to determine the exact coverage being RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV: BROKER'S PROPOSAL ww provided; personal discussions; and on-site visits. We will use our unique five-part Risk Identification Model to identify and analyze your unique loss exposures. 121 RISK & COVERAGE PROFILE (120 days prior to renewal) moo For coverage assigned to us, we will develop a Risk Profile unique to City of Renton. We will compare .� this Risk Profile to your current insurance coverage to: determine any serious or unanticipated gaps that exist; review the retentions and insurance limits; and provide you with a written report outlining our observations and recommendations. mom r RENEWAL • . memo W At least 100 days before your major renewal date(s), we will coordinate a Renewal Strategy Meeting to: ■ Review our Risk and Coverage Analysis, the resultant Risk Profile and the adequacy of your current insurance portfolio. ■ Update City of Renton on the current insurance market. ■ Discuss recent renewal results for similar clients. ■ Provide an analysis of viable underwriter alternatives, their capacity, and deductible preferences. ■ ■ Obtain your thoughts on the desirability of any particular market, i.e., your past history with that Ncarrier, the carrier's financial rating, etc. ■ ■ Provide renewal pricing ranges. ■ Suggest a renewal timeline and renewal options. IVII Our goal is to provide you with a concise report outlining our mutually agreed upon game plan. D4 mom The underwriting submissions we prepare are unrivaled in our industry. Our responsibility is to portray, with integrity, your unique Risk Profile for each line of coverage. Your underwriters will know that our submission will portray your unique risks and operations correctly, succinctly and in a clear and easily �*• understandable format. We encourage meetings between you and the underwriters. -24- A)A,,,ant wr RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV: BROKER'S ce • RPROPOSAL L Our goal is to distinguish you from your peers and we do so by creating first class underwriting presentations that demonstrate your unique risk characteristics. We will help you structure the material and provide input and guidance on the graphic representation of your unique results,risks and operations. ■ The underwriting submission and the underwriter presentation will be available to the market at least 75 Ldays prior to your renewal date. L 5 UNDERWRITER MEETINGS (75 days prior to renewal) We will coordinate all underwriter meetings benefiting City of Renton and our renewal strategy. Where possible,we will attempt to schedule these at your office. � L NEGOTIATION (60 days prior to renewa 6 To execute a successful renewal,we must focus on two key areas—market canvassing and the exploration of options. At our Renewal Strategy Meeting, we will have reviewed the listing of all possible market alternatives, solicited your input and agreed to those we want to approach. We will review alternative limit, retention and coverage structures. We will provide you with weekly renewal updates to keep you informed and to get your feedback and thoughts on the underwriters' responses. 7 bm We are aware that while our clients want to have a bottom line comparison of all renewal alternatives, .�. they also want to know the intricate details of each quotation. Therefore, our renewal proposals feature both an Executive Summary and a detailed Coverage Analysis section. Our analysis will help you make a more educated renewal decision. LN E8 ! BINDING D• (Prior ... Once you have reviewed your renewal options and have selected an alternative, we will immediately process the following documents, all designed to be completed before your renewal date: -25- AA- mart i ELI RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV- BROKER'S PROPOSAL IL ■ Confirmations of Coverage ■ Certificates of Insurance �. Premium Finance Agreements (if applicable) ■ Claims Reporting Instructions ■ ■ Program Limits Charts L 9 ■ LWe will create a Desk Reference that will include insurance summaries of the coverage's bound, claims reporting instructions and contact information for your dedicated service team. L Our Monthly Open Items Reports and meetings are formalized events helping both of us and your underwriters to stay focused on unresolved items as well as, to discuss new risks or operational issues. ... 10STEWARDSHIP REPORT/STRATEGIC PLANNING MEETING (Prior to renewal) ban The Stewardship Report and Strategic Planning Meeting are designed to evaluate our performance, review the results of your renewal, discuss any new operations you are contemplating, identify new and La emerging risks, update you on recent market conditions/trends, and plan our next renewal strategy Lmeeting. ■ ■ We appreciate you taking the time to review our Defined Client Service and Marketing Process, which details specific activities related to transitioning your insurance to us. This strategic framework allows us ■ to effectively market your renewal as we gain a better understanding of your coverage and risk exposures. Through this process, you will have an opportunity to evaluate our performance, from which we will collaborate on increasing the likelihood of favorable renewal outcomes for your organization. ■ ■ ■ ■ ! ■ -26- A�Illiant bi RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV: ~ . PROPOSAL r 2. RISK/LOSS CONTROL AND RISK MITIGATION SERVICES Alliant Loss Control Service(ALCS) can assist the City with activities including,but not limited to: ■ Hazard risk assessments ■ Review of existing Risk Control Procedures bra ■ Training, including webinars and a DVD library ■ Crisis Management and Contingency Plan Development �r ■ Providing loss and computer model losses rn� ■ Designing and developing a program for building appraisals and valuation Alliant's services are in place to support the City wherever necessary. Our claims and loss control resources have specific knowledge in unique exposures such as correctional facilities, bridges and tunnels, law enforcement and fire department issues, stadiums and many other exposures that frequency appear with large public entities. Please see Appendix C for a Sample Report for Risk Management and ® Loss Control Practices. Safety and Loss Control Services Alliant's safety and loss control services help clients identify and reduce loss exposures. Led by Brent Escoubas, the staff provides a broad spectrum of services and is capable of designing, implementing and ■ managing a comprehensive loss control program. Below is a description of some of Alliant's loss control ■ services available to the City. ■ On-site visits to determine loss preventive needs — The Alliant Loss Control service team is ■ available to perform initial and follow-up consultative site visits. Our staff of consultants and ■ specialized subcontractors are available to assess risks and local management concerns as well as recommend loss prevention needs and action plans that help the site meet important business and . risk management goals. ■ ■ Assistance in fire prevention regulatory compliance — Alliant will review fire sprinkler and fire alarm systems design, including fire and building code(s), applicable consensus codes ■ (NFPA) and generally accepted best practices for liability and property insurance/risk management. ■ Catastrophe modeling—Alliant utilizes the latest Catastrophe modeling software to assist clients ■ in evaluation of their risks, including the exposures that directly affect the City — Windstorm, Earthquake and Flood. We believe that it is critical for our clients to understand their Probable Maximum Loss (PML) exposure to help make informed risk management decisions and better ■ serve stakeholders. We utilize both the AIR Cat station and RMS Risklink catastrophe modeling programs on our client's behalf to assist in better understanding and quantifying their windstorm ■ and earthquake exposures. The models are used to: ■ 1. Supply data to make decisions on how much to fund for a self-insured retention. ■ -27- .Ak ffi rnt bw RESPONSE TO REQUEST FOR PROPOSAL tri PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV: BROKER'S PROPOSAL ■ 2. Identify the key drivers of loss and which locations are impacting premiums. ■ 3. Provide data regarding how to allocate CAT premiums and how to fairly allocate premiums to locations. 4. Provide key analytics to help clients in the market to better understand the issues faced by ■ their underwriters. 5. Guide how much insurance should be purchased for windstorm, flood and earthquake. ■ ■ Disaster ManagementlRecovery Services In the event of a natural disaster, Alliant's Service Team will work with the City to identify appropriate activities and resources aimed at mitigating loss and maximizing insurance recovers. ■ Pre-Event Activities ALCS (Alliant Loss Control Services) has extensive experience with the design, implementation and project management of business continuity, disaster planning and recovery programs. We can work with ■ the City Risk Management to identify key business continuity activities or assist in designing a complete business continuity plan and oversee the implementation of the plan. Insurance Requirement in Contracts Manual ■ A common need and request from our clients pertains to reviewing contracts and developing appropriate language and insurance requirements in order to properly manage risk. ■ Our IRIC manual is available electronically for all of our clients and details recommended insurance requirements for vendors working with our clients. The manual will provide guidance to your staff ■ involved in securing contracts with a variety of contractors and vendors. Alliant is prepared to offer full or half-day training presentations to clients on the concepts contained in our IRIC Manual. We do these ■ presentations often for most of our larger clients. ■ Much of our time is spent with clients working through contract language issues, and for a few of our ■ clients, we review every single contract prior and post execution in order to determine that correct language is used, and that every contractor is in compliance. For most others,we provide detailed training ■ and then only handle exceptional requests. Deb,Tom and Brian are well versed in this process. ■ 3. CLAIMS ADMINISTRATION SERVICES ■ Alliant's public entity claims department is located in San Francisco, CA and led by Bob Frey. His most valuable role will be to act solely as your claim consultant and advocate on difficult and severe claims. ■ Bob's goal will be to complement and supplement your efforts in obtaining quick and equitable claims ■ resolutions while acting as the City's claims resource. Bob's responsibilities include: ■ Reviewing claims notifications and abstracts to assure appropriate reporting to insurers; ■ _28_ 1A4iliant ■ L L RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV: BROKER'S PROPOSAL L ■ Assisting in the procurement of documentation, as necessary; L ■ Tracking the status of large or difficult, open claims; ■ Coordinating insurer claims meetings; 110 ■ Facilitating a dialogue between the client,the assigned adjuster and insurers; ■ Responding to questions on coverage. In assisting our clients with coverage disputes and proving difficult claims, we recognize that each claim ® is different and has its own fact pattern. This information is reviewed to determine the best path in dealing with coverage disputes. The facts are examined as they relate to the Policy wording and the Policy ■ wording is reviewed word by word; often it is only one word that can turn a coverage dispute in favor of the insured. Alliant will locate and utilize outside consultants where it is helpful in proving issues such as causation, valuation of damage, historical value, etc. We often assist our clients in gathering facts, ■ information, knowledge that is used in the discussion and negotiation of disputed claims. In addition, our Public Entity Claims Practice Group has the ability to call upon both the Chairman and President of ■ Alliant when intervention with Executive Management is necessary. While this step is not one often utilized,our Executive Management Team stands ready to assist as needed for both our clients and staff. ■ The "devil is in the details" never rings truer than when there is a claim. Alliant will work with you to maximize recoveries. ■ The following services will also be provided by the Alliant Service Team working in close collaboration with the City: ■ Overseeing the process for identifying the Assigned Adjuster—Alliant will work with the City ■ to evaluate and select an assigned adjuster for the property program, if necessary. If the City is happy with the current relationship, we will align our team with the adjuster to provide seamless ■ service. ■ Establishing uniform claim reporting procedures—Alliant will oversee the implementation of a "Claims Procedure and Reporting Handbook" working closely with the City and the assigned ■ adjuster(s). It is our intent to be actively involved with claims as it provides us with a complete understanding of loss activities and it improves our relationship with program insurers. While it is the adjuster's responsibility to adjust claims, it is our responsibility to ensure the insurance program is responsive to the City exposures and that insurers are responsive to City needs. ■ Utilizing technology for claims reporting—Alliant will explore ways to utilize technology in an effort to improve the efficiency of claim reporting. Alliant's proprietary program OAYSYS-Net provides a platform for reporting claims online. We will explore the compatibility of this program with current City procedures. ■ -29- ASI lljant IL I RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV: BROKER'S PROPOSAL ILY rr■r ■ Coordinating Insurer/TPA claims services — Alliant will take an active role in monitoring the claims services provided by the Assigned Adjuster(s) and any additional parties, including I professional services such as forensic accountants. rr ■ Claims/Loss analyses — Alliant's Service Team will analyze loss characteristics as part of its program design activities. Particular attention will be paid to identifying frequency issues and +� areas where severity has been demonstrated. �rrl Post-Event Activities — The City of Renton Alliant Service Team will assist in coordinating the Lprofessionals needed to swiftly prepare and negotiate complex claims. This includes utilization of a forensic accountant for complex business interruption claims, if necessary. Bob Frey will serve as a claims advocate for the City working closely with all interested parties to settle each claim as quickly as possible. 4. INFORMATION SERVICES ■ Alliant has a well-organized network within the "specialty" division that keeps all of our account executives abreast of changes within the public entity sector. As we have emphasized throughout our response to the City's RFP, Alliant recognizes that public entities are a specialized insurance niche. We ■ closely track all Risk Management trends and insurance topics. We will provide the City of Renton with information as it occurs and be prepared to provide more in- depth details as a part of the quarterly Open Items meeting. ■ 5. ADVOCACY SERVICES ■ Alliant will be the City of Renton's advocate on issues affecting the City. Claims advocacy is a major part of our services in this arena and this support will be provided in other risk management and insurance Narenas, as required. 6. STEWARDSHIP PROCESS ■ The Stewardship Process is an essential part of Alliant's risk management partnership with the City of Renton. This process provides an opportunity for two-way feedback between the City and your service team. This process facilitates open dialogue with regard to accomplishments achieved in the past year, the status of on-going projects and prioritization of new issues relating to your risk management and insurance program. 0 Because our environment is not static, your risk management strategies must be revisited frequently to ensure that your program meets with your operational needs. Through this process,you take an active role ■ in defining the Service Plan for the year, thereby ensuring that the needs of your organization are recognized and addressed. -30- AA,,,ant RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV: BROKER'S ce • PROPOSAL IL The Stewardship Process has several key components. The components are as follows: ■ A Stewardship Meeting between the City and Alliant Service Team approximately six months into the policy year to discuss all elements of the program and to establish the content of the Stewardship Report. ■ Presentation of a formal Stewardship Report to the City within 45 days after the calendar year- end for the City. ■ Monthly Open Items List review. ■ Quarterly Open Item meetings that"roll-up"to the formal Stewardship meeting. The Stewardship Meeting—Suggested Topics ■ ■ Discussion of your operational goals and philosophies. ■ ■ Discussion of any changes in your operations, with a focus on how we can assist you in minimizing risk and maximizing growth opportunities. Ic ■ Review and discussion of projects completed, along with a status report on open projects. L ■ Review of services provided to the City by any outside sources(who may be invited to participate L in the meeting, if appropriate). ■ Open discussion of how well the City perceives the Alliant Service Team to have met the agreed- upon service requirements. ■ ■ Discussion of trends in the insurance marketplace, including new products and services which ■ may have interest and applicability. ■ Planning for new projects to be undertaken in the current or upcoming service plan year. ■ ■ Discussion and establishment of strategies for the coming year and beyond. N Core Elements of the Stewardship Report ■ ■ Executive Summary—Highlighting key items contained in the report. N ■ Major Accomplishments — Achieved in the past year (i.e., by line of coverage, program ■ structure, claims management, safety& loss control). ■ Ongoing Projects — Status report on the past year (i.e., by line of coverage, program structure, claims management, safety& loss control). 16 ■ Goals and Opportunities — For the upcoming year as determined in the Stewardship Meeting regarding our level of service to you. rr. -31 - wAlliant L L RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION BROKER'S • • PROPOSAL r r • ba LAccounting of Compensation—As we have discussed, Alliant believes in full transparency and disclosure of our compensation. Income to us from any source will be disclosed. LThe Stewardship Report is only one element of our ongoing communications; however, it is a very important process for both the City of Renton and Alliant. ■ ■ 7. MAINTAIN WRITTEN RECORDS Alliant will maintain all records and documents that pertain to the City of Renton's account for a ■ minimum of seven years. We will make these records available to the City of Renton upon request. ■ 8. OPTIONAL SERVICES(SUCH AS ACTUARIAL AND VALUATION SERVICES) Alliant offers additional services. Some of those services do require an additional fee. Alliant is first and foremost a broker. However, we have long and trusted relationships with other specialists and we will provide the City with references to these specialists. Two examples of this approach are Third Party NAdministrators(TPAs)and Actuaries. ■ For property valuations, should the City choose to become a part of Alliant's proprietary Property ■ program, PEPIP, property valuations for locations in excess of $5,000,000 in value will be performed every three years. For lower valued locations, we have strong relationship with firms that perform this service and valuations can be performed at much reduced fees. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ IN +� _32 _ -&A-Uliant ■ RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV, BROKER'S PROPOSAL Describe current insuranceAelf-'insurance program and provide a conceptual plall )1,ith r r tiftiely marketing of the needs / discuss applicable.adjustmentv, if ® The Defined Client Service Plan that we discussed in the previous section provides a road map that will provide the foundation for Alliant's general assessment of the City of Renton's current insurance and self- insurance program. We have already started this process by reviewing the data that you provided as a part r. of the RFP process and have visited your webpage. In addition, we look forward to continuing this process by: ■ Filing Broker of Record Letter with your insurers to obtain loss runs, pending endorsements, rr policy terms and conditions. ■ Meet with Risk Management to discuss current concerns, ongoing projects and potential new emerging risks such as Cyber Liability or the potential annexation of new citizens. ® ■ Begin to acquaint ourselves with the City's Risk Profile. This includes a detailed review of your Lloss data. It also includes discussions of your risk appetite. This analysis will lead to our recommended program structure. Conceptually, we believe that a combination of self-insurance supplemented by reinsurance or excess insurance from private insurers is 'r the best approach for the City. A City the size of Renton should retain the first $100,000 to $250,000 of liability exposures, depending on historical loss experience combined with Renton's appetite for risk and desire for claim control. Above this retention, either reinsurance or excess insurance could be purchased. „r The advantage of reinsurance is a liability form specifically designed for the City could be written, and reinsurance implies more control over how claims are addressed. Excess insurers would use their own public entity forms and may require additional control over claims handling. Since there are more excess insurers than reinsurers, competition may lead to aggressive premium structures from excess insurers. bw Liability Program Cities purchasing liability insurance have many exposures that need to be covered: ■ General Liability 'r ■ Automobile Liability �. ■ Public Officials Liability ■ Employment Practices Liability i ■ Police Professional Liability hum "� - 33 - &AINant ■ RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV: BROKER'S PROPOSAL M • ■ All of these exposures would be addressed as a part of the coverage form. ■ Potential Insurance Markets There are approximately 27 insurers that could provide coverage for all of these types of liability, but we would recommend approaching the following four lead markets (A.M. Best's ratings shown in ■ parentheses): ■ Munich Reinsurance (A+/XV) — This market can use the reinsurance approach with a ■ manuscripted Memorandum of Coverage (MOC), and could provide as much as $10 million in ■ liability limits. ■ C.V. Starr — (A+/XV) — Starr is a major Public Entity insurer. Alliant accesses this market ■ through their San Francisco office and we work with them on a number of accounts in our Seattle ■ office. ■ Allied World Assurance Company—AWAC (A/XV) — This market established their office in ■ San Francisco about six years ago. They have proven to be a competent public entity underwriter and aggressively pursue public entity clients. ■ Ironshore(A-/XIV)—This market established an office in San Francisco and hired a well-known . public entity underwriter away from ACE Insurance Company. Within the past five years,the two top officers of Lexington Insurance Company, well-known for insuring excess liabilities for public entities, left Lexington for Ironshore. We feel that this expertise enables Ironshore to be an ■ aggressive and knowledgeable market for public entities. • London (A/XV) — London can be a good Excess Liability market. We use them on high excess ■ layers. Liability Pricing ■ We have not approached any markets on behalf of the City, so indications of pricing leads us to be conservative and indicate a price for a $20 million liability limit with a $250,000 retention to be approximately $225,000 to $235,000 when comparing Renton's size with similar public entities. We ■ would propose to market your excess liability to Insurers and break the$20 million limit into a$5 million layer and a $15,000,000 excess layer. This approach could create more competition among the markets, ■ and could reduce the premium range to $220,000. We understand that the City has given WCIA notice that you are considering withdrawing from the Pool. In order to complete that process, you would need to have firm premium options by early December. The following page provides a conceptual timeline. ® -34- A4lfiant Id RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV- BROKER'SPROPOSAL SAMPLE LIABILITY TIMELINE: December 1 Date for Quotations Coverages/ Estimated Actual Responsible Open Item Issues Partv i Refer i OpCompletion ■ Date Date Renewal packet and loss Alliant/City 8/30 Renewal Packet Sent ■ analysis delivered Renewal Strategy Meeting Alliant/City 9/15 Review of data Review current policy Alliant/City 10/1 ■ form and market analysis ■ Renewal packet received City 10/15 by Alliant ■ Draft submission Alliant 10/30 ® Submission to market Alliant 10/30 Underwriting meetings as Alliant/City/ 11/15 Lrequired Markets Weekly market updates Alliant Ongoing Ongoing Options charts/analysis Alliant Updated as needed .rte Liability Final renewal proposal to Alliant 12/1: Can be earlier based on City City's preference ! Renewal order given City 12/15: Can be earlier based on City's preference Renewal Implementation Binders and invoices Alliant Week of 12/22 issued and transmitted ■ Issue certificates of Alliant Week of 12/22 ■ insurance Update any information on Alliant 1/15 Alliant Connect Stewardship report/post Alliant February +•w renewal meeting bmm Other meetings as Alliant Upon Request Ongoing requested by City ..r This plan would be customized to encompass all deliverables for the City. All of the services necessary to support the casualty lines of coverage will be addressed. Services will include: ■ Gathering data ■ Analysis of data ■ Design of the program �"' - 35 - AAffiant RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES 7w SECTION IV: BR( i PROPOSAL IM ® ! L ■ Marketing and implementation of the program ■ Analysis of the marketing results 10am Market report L ■ On-going maintenance of the program LRisk Purchasing Group You are very familiar with the benefits and the downsides of the rigid structure of an insurance pool. By its nature, there must be many rules in order to ensure that its members are committed and will provide the financing necessary to make the pool financially viable. Many times, for larger entities, the value of a pool as a risk spreading mechanism becomes moot as that entity becomes larger and would like to assume different layers of risk that are more reflective of your risk appetite and provide more flexibility in your ■ program design. We understand these issues. There is a potential mechanism that Alliant Seattle has successfully employed for two of our largest groups of accounts. It is a Risk Purchasing Group. This type of group is authorized by RCW 48.92. This type of group is characterized by: ■ Group Purchase of Liability Coverages: It allows the group to purchase a master program with individual policy limits for each member of the group. There is NO risk sharing and each member stands on its own loss record. ■ There is NO pooling of funds to finance the program. ■ There are NO restrictive covenants that tie the entity to the Purchasing Group. 0 Coverage is flexible to meet the individual member needs and stunning premium savings can be achieved. L This is an idea that we would like to explore with the City of Renton. Insurance Pools ■ While pools have done an excellent job providing stable pricing and coverage for smaller public entities since the late 1980's, we believe Renton has outgrown the pool over time and that there are better options Lavailable elsewhere. IN We look forward to exploring these ideas further with the City. LProperty Program (Including Boiler& Machinery) The City of Renton currently purchases its property insurance program through WCIA. Please see chart on the following page. Alliant would explore a number of different paths for this coverage: ■rl ■ Traditional layered approach ■ Alliant's Proprietary Property Program: PEPIP !M� Affiant i rib. RESPONSE TO REQUEST FOR PROPOSAL rPROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV: BROKER'S PROPOSAL i +1 ■ l r� Alliant believes that we can improve the City's current program and provide you with the following rar• improvements: ■ Property is currently placed competitively with WCIA for 9.3¢. ■ Alliant's Proprietary Program (PEPIP = Public Entity Property Insurance Program) can compete with, but not necessarily beat, the existing 9.3¢rate. ■ Alliant's PEPIP Program includes $35013 of values versus WCIA's $5.513. ■ Alliant can provide$50M of dedicated limits to Renton for Earthquake and Flood. ■ RMS Report shows 250 year model has Renton paying a $3.3M deductible, and insurers paying $22.3M for earthquake damage. ■ Renton needs its own Earthquake coverage, not shared coverage given the high concentration of WCIA insurable values in the greater Seattle area. Alliant will work closely with the City to design a custom, tailored program specifically for your property needs and exposures. Lj WCIA Property Placement n� S300M i% 1` 1'. 00. fir• S 150M Earthquake i Shared �■'� Mom Flood 204 ARCH r� S100M Shared Aggregate- It Ir■r■ S 25M Ir. tarry Deductible 2005250,000 TS250.000except $25.000 All Petits Except Earthquake&Flood MhdMnm 30iv$5.00,000 in Zones A&V *Shared Aggregate—Renton shares Earthquake&Flood coverage with other WCIA member values totaling S5.487.817.567. L 60 - 37 - &AIRant i RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECT ION IV- BROKER'SPROPOSAL ■ Other Lines of Coverage Alliant understands that the City has a number of different lines of coverage that will need specialized knowledge and expertise. Alliant is well-versed in efficiently handling these lines and will bring the City Loptions as we work through these renewals. We also understand that there are new and emerging lines of coverage that the City will want to explore. The coverage that has captured everyone's attention is Cyber Liability (both first and third party coverage). Alliant has been at the forefront of developing Cyber Liability programs for complex Public ... Entity accounts. We also understand that some of the City's existing coverages, such as your Employee Crime and Fidelity Bond, if property structured, are important risk management tools that can respond to ..• loss due to a cyber attack. Alliant looks forward to bringing our expertise in this arena to the City of Renton. M M M I � M M M M M ■ - 38 - A- 1hant 1W RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV . PROPOSAL. ! 1 Provide r description okyour abilitiesspecial perceive as r Alliant is extremely qualified to provide the requested insurance brokerage services to the City. Our extensive experience in providing similar services to thousands of public agencies makes us a leader in r.. this field. Over the past 34 years, Alliant has developed custom insurance and risk management programs for our Public Entity clients. These include over two thousand cities, several thousand special use districts, 56 of California's 58 counties, more than 70 public entity pools, over 170 hospitals, several of the nation's largest transit agencies and school districts, the California State University system and several states, including the State of Washington. Collectively, Alliant provides services to over 10,000 Public Entity clients in 48 states. L CORPORATE PROFILE BUSINESS FOCUS ESTABLISHED: 1925 ■ Retail Brokerage ir.. PREMIUMS: $7.6 billion ■ Insurance Admin. Services REVENUES: $548 million ■ Risk Management Consulting EMPLOYEES: 1700+ ■ Captive Review OFFICES: 50 offices in 21 states ■ Underwriting INDUSTRY RANK: 12th largest In US Loss Control MARKET IDENTITY: Specialty Focus ■ ■ Human Resources Consulting WEBSITE: WWW.alliant.COm ■ This focus on Public Entities and their needs has led Alliant to develop specialty programs that deliver comprehensive coverage at "below market" costs. In the next section of the proposal we will focus on r.. some of those programs that could be useful to the City. In addition to programs, Alliant recruits and employs specialists in the public sector. The following are some of our abilities to provide services to the +• City: Local Experts `. The Seattle Office of Alliant is recognized as experts in the Public Entity arena. Deborah Bovee and Tom LLong have sixty plus years of combined public agency experience. They have the ability to draw on "'� -39- 1�41hant RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTIONBROKER'SPROPOSAL wrrr r■r Alliant's extensive pool of knowledge and expertise. We have been chosen by our municipal clients because of our ability to offer: goo ■ Innovative,cost-effective risk management and insurance programs 6� ■ Added value to the strategic planning process ■ Creative ideas and products ■ Our understanding of the unique public entity political climate rr Focused Products and Services rr� Alliant has over 300 employees that focus just on municipal risks. We have been a leader in developing programs that can be used to bring added value to our clients. L Success with Other Public Entities The Seattle office of Alliant Insurance Services is dedicated to the Public Sector. Our Seattle Team ■ currently handles close to $35 million in premiums for Public Entities. These types of premiums provide us with strong leverage with the major Public Entity markets in Seattle and on the West Coast as well as on a worldwide basis. ■ We currently have a number of proprietary programs, the most noteworthy being PEPIP (Public Entity Property Insurance Program). With over$350 billion in insured values in more than thirty states,PEPIP is the largest property insurance program in the world and offers members leveraged buying power with the ■ attendant benefits of flexibility, enhanced coverage, and reduced premium costs. PEPIP affords coverage under a broad manuscript form adapted to the needs of the public entity. ■ Our companion excess liability program is the Alliant National Municipal Liability Program (ANML). Similar to its PEPIP counterpart, ANML has been designed to capitalize on the flexibility, broader . coverage provisions, and lower premium rates of group program purchasing power. Public agency clients maintain the capability of designing coverage limits and deductibles specific to individual needs without the necessity of formal membership requirements. The policy form offers coverage specific to public ■ agencies and is notable for the absence of exclusions for fungus and mold and uninsured motorists coverage, broad named insured language inclusive of employees, directors, elected officials, and ■ volunteers, and a less restrictive, more beneficial pollution exclusion with favorable pollution definitions. Even more notably, public official errors & omissions and employment practices liability are not subject to aggregate limits as is the case with typical public agency liability insurance policies. Manuscripted special excess liability coverages include: Public Officials Errors & Omissions, Employment Practices Liability (a unique clause reimburses up to 50% of reasonable defense costs should allegations of negligence not be proven),Contractual Liability, and Incidental Medical Malpractice. The rapid growth of this newest Alliant proprietary program—member premiums are nearly $17 million—reinforces the fact that its broad coverage and competitive cost is fulfilling the liability risk transfer needs of the public sector client. ■ -40- AAffiant RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV: i ■ Furthermore, we also have developed a number of other group programs designed to address a host of risk management issues on a typically competitive, lower than individual policy cost basis including crime/faithful performance bonds, pollution liability, airport, aircraft, vendor's liability, tenant user liability, watercraft, and fiduciary (ERISA) liability. Our experience and competence coupled with our Icommitment implicitly assures that quality remains the cornerstone on which we base the delivery of service. rr.. Several of the programs that the City will want to consider are: ■ ■ Fiduciary Liability Insurance Program (FLIP): This program was launched by Alliant in 2005 to bring the cost advantages of group purchase coverage to retirement systems seeking ■ individualized liability coverage at a cost significantly less than would be purchased as a single public entity. Some of the features of this program are: Full Prior Acts coverage 0 Limits and deductible options available ■ a Full severability of application endorsement HIPAA Extension 0 Governmental Plan Endorsement ■ . Public employer with sponsor organization coverage ■ . A+XV Underwriters Many Public Entities do not recognize their exposure to loss from lack of coverage for this Lexposure. Alliant will work with the City to quantify your potential exposure to loss. L ■ Capital Improvement Projects: The Seattle Team of Alliant have a strong construction/design professional liability/ environmental liability background. Tom Long and Deborah Bovee have directed the following major projects in Seattle: 0 ShoWare Event Center, City of Renton(Builders Risk) a Brightwater Project(All Lines) Safeco Field(Project Professional Liability, Environmental Liability, Railroad Protective and Builder's Risk) a Seattle Bus Tunnel(Original Construction for Metro) LAlliant has a specialty focus in this arena. As the City encounters these projects, we will provide consultation on contract language and coverage issues. - The Alliant Team has the experience and the resources to work with the City on Capital '�' Improvements Projects. RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV: BROKER'S PROPOSAL ■ Alliant Insurance Brokerage&Risk Management Services ■ Retail Brokerage: ■ Our insurance brokerage and risk management professionals are client advocates. Our strategy . involves segmenting our client groups around our clients' special needs and then providing those specialized services. While we have extensive capabilities to design, place and implement ■ customized solutions across all insurance lines and products, we have developed specialties and group purchase programs that combine mass buying power with specialized focus. ■ ■ Reinsurance Brokerage: ■ Alliant places the reinsurance for some of the largest Joint Purchase programs in the United States. We also place reinsurance on an individual account basis. King County is a good example of this type of placement. ■ The Seattle Alliant Team has one licensed Reinsurance Broker: Tom Long. . Strategic HR Alliant knows that sometimes the biggest issues that your entity faces come from one of your most ® important resources: your employees. Strategic HR was formed to provide our clients with the tools to try and avert or prevent the claim before it occurs and if the crisis does occur, the resources to navigate through the complex issues. Some of the resources that this group offers are: ■ ■ Unlimited Consultation with Human Resources and Safety Experts ■ Human Resources Seminars IN ■ On-Line Access to HR forms, guidelines, policies and checklists ■ Compensation Data ■ ■ Monthly HR "Toolbox": Monthly e-mails containing information on new laws, best practices and other important information on this ever-changing arena ■ On-Site and Web-Based Training for Managers and Supervisors ■ ■ Unemployment Insurance Claims Management Alliant are focused experts for our municipality clients. We have all of the services and programs ■ available to assist the City of Renton with its day-to-day challenges. In the "Statement of Qualifications" Part E, we have provided specific examples of our day-to-day services on some of the largest public ® agencies in Washington. ■ -42 - z1hant ■ RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES r PROPOSAL Describe some of-vour abilities to meet any otherspecial services You percei ie are needed. LAlliant prides itself on its innovative and creative approaches to solving its clients' issues and problems. Our response to premium and coverage concerns has been to concentrate our clients' buying power into highly competitive, comprehensive programs using mass marketing techniques. While City of Renton Lwill `stand on its own' on your major lines of coverage, some of your coverages with less premium will likely benefit from this approach. Examples are the Fiduciary Liability and Crime Coverage. However, .,.r, whether the City is marketed on its own or if we utilize a program approach, Alliant's presence in the public sector marketplace will bring you market leverage and clout. Because we place over a billion dollars of public sector premium, we are recognized as the premier broker when it comes to public entity Nbusiness. 0 Some of the innovative risk management programs that we have offered our clients are: ■ ■ Public Entity Property Insurance Program (PEPIP): This is the largest property program in ■ the world with over $350 billion in values. The success of this program comes from its comprehensive, tailored coverage for public entities and its extremely competitive price structure. ■ ■ Alliant National Municipal Liability Program (ANML): This Excess Liability program provides broad coverage terms with some of the industry's most stable, competitive insurance markets. LAlliant understands that our programs are not for every client. However, by concentrating the buying Npower of our major public sector clients, we will bring the City of Renton a new market segment that you Lhave not had access to in the past. Another major innovation that Alliant Insurance Service has brought to our municipal clients is the use of Risk Purchasing Groups (RCW 48.92) that allows for the group purchase of liability coverages without „r the restrictions of an insurance pool. Alliant has used this mechanism in both Washington (Ports) and Alaska (Cities and School Districts) with stunning results. For example, the Port's Liability premiums have been reduced by 49%over the last six years. L Alliant believes in actively marketing all of our clients each year. As an integral piece of this activity we 111110 always look for innovative, creative ways to enhance your coverage and reduce premiums. ■rr. .... -43 - AAk lhant RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTIONr PROPOSAL E. Special Qualities capabilitj-, resources, alid interest in working with the Citi,ofRentolts risk manag-entent and insurance program. There are four critical factors that differentiate Alliant from our competitors. L1. Experience �• We know public entities. Alliant currently provides brokerage services and consulting services to our ... 7,000 public entities. Public entity is not a sideline for us! Our focus on the public sector is unique in the industry. Our expertise in your business is demonstrated by our breadth of clients in the state of Washington. 2. Our Philosophy Service Focused—Stemming from 40%employee ownership of the company. Alliant is: M ■ Client Focused — Our flat management structure enables us to place key resources at the client level rather than at the corporate level. ■ Public Entity Focused— The industry segment represents 38% of the company revenue and Lis the largest client segment of the company. L ■ Growth Focused—We are an ambitious company that realizes growth is achieved through a commitment to our current clients and the ability to bring innovative solutions to the industries where we specialize. ■ Utilizing Key Resources—we are not bound by geography and all team members, regardless "■" of specialty, work in the same financial unit removing any barriers to collaborative work. Alliant fully understands the complexities and nuances of designing and implementing effective, viable insurance and self-insurance programs on behalf of our clients. Indeed, this bm process affords the first measure of our capability as a broker, and we relish our recognition with the insurance community as being: Aggressive— Securing broad coverage and capacity at competitive premiums. Innovative — Developing new insurance markets and new programs based upon our Lspecialized expertise. ■ Committed — Developing and implementing many of our programs only after several years of effort, a long-range perspective that many of our peers cannot or do not maintain. ■ Analytical — Being able to review and understand our clients' operations and exposures and ir. to develop appropriate strategies to manage risk before presentation to only appropriate responsive insurers. '�" -44- Affiant RESPONSE TO REQUEST FOR PROPOSAL 'r PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV: BROKERJS PROPOSAL truer r 3. Our People Alliant has over 300 senior employees that focus on just public agencies. Your Seattle Service Team r... is a good example of the depth and experience with Public Entities. Thomas Long, CPCU,ARM-P, RPLU 30(+)Years Industry Experience Market expert: �.n State of Washington ■ King County ■ Kitsap County r••a ■ City of Kent rr ■ City of Ketchikan ■ City&Borough of Juneau Ketchikan Gateway Borough ■ Deborah Bovee, CPCU,ARM-P 30(+)Years Industry Experience Has handled or currently handles: ■ State of Washington ■ ■ Port of Tacoma ■ King County • ■ City of Kent L ■ Kitsap County ® ■ Pacific Northwest Port Association L ■ Golden Gate Bridge District LBrian White 10(+) Years Industry Experience Currently handles: rte. ■ Washington State Transit Insurance Pool(WSTIP) L ■ Golden Gate Bridge District L ■ Washington State Water and Sewer Pool(WSRMP) ■ City&Borough of Juneau �.. ■ City of Kent ■ State of Washington L ■ -45- AI,,ant rr■r RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV: i r PROPOSAL 4. Accessibility Alliant Insurance Services will be very accessible to the City of Renton. Our office is located in Seattle. We believe in the Team approach to our major accounts. We have assigned three senior Account Executives to your account: Deb Bovee, Tom Long and Brian White. All three will be intimately familiar with your account and the current issues/projects that are being undertaken on your behalf. At least one of them will be available at all times to answer questions and provide you with the support that a complex account like the City of Renton requires. ■ In addition to Tom, Deb and Brian, there is a senior support staff that will also understand your account and be available to answer questions. Vicki Holaday, Account Executive,will be the lead and she will be supported by Conni Scott and Joyce Dorland. All of our Account Service Team members Lhave e-mail, cell phones and high degree of accessibility. bu All of these factors make Alliant the best choice as the City of Renton's Insurance Broker and Risk INManagement partner. N RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES SECTION IV BROKER'S PROPOSAL Provide your recommendedfte structure covering each yearfor the next three-year period, in consideration ol'the kno)vn scope of services and various listed lines of 1 insurance coverage(see Part 2,A-1) that the broker ina-v handlefbr the citj,. .r Alliant Insurance Services is proposing a flat fee for all services outlined in the "Areas of Service" in the .�. RFP. Alliant is offering three fee structures that are dependent on the lines of coverage that we handle for the City. .r ■ Option 1: This option contemplates all lines of coverage including the Liability coverages ..� currently part of WCIA, Property Lines and all other lines enumerated in the RFP. The fee for services: $47,500 Mae ■ Option 2: This option contemplates: .... 0 Full marketing of lines of insurance including the lines of coverage with WCIA. .r 0 Servicing and support of those lines of coverage brokered by Alliant. IF the City determines that the Excess Liability will remain with WCIA but not the Property, our annual fee drops to $32,500. ■ Option 3: This option contemplates: ® 0 Full marketing of lines of insurance including the lines of coverage with WCIA. 0 Servicing and support of those lines of coverage brokered by Alliant. LIF the City leaves the Liability and Property coverages with WCIA, our annual fee drops to $15,000. Alliant will commit to full transparency on all income. We will provide an annual accounting of �Lny additional income received. For new lines of insurance, such as Cyber Liability, for example, Alliant would propose that we take commission (limited to 10%) for the first year on any new coverage lines. After the first year, the coverage would roll into your program and be covered by our fee. Public Officials bonds, if any,would be exclusive of our fee. We will guarantee our fee for three years. r i i ""' -47- AAliant i 114, ' RESPONSE TO REQUEST FOR PROPOSAL CASUALTY INSURANCE BROKER OF RECORD SERVICES APPENDIX A. Service Team Resumes B. Insurance Requirements in Contracts(IRIC) C. Sample Loss Control Report: Review of Risk Management and Loss Control Practices N ■ ■ RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES PPENDIX A. Service Team Resumes Please refer to the following page(s). ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ I ■ ■ ■ ■ ■ 1han t ■ _7 • L Lk FIRST VI".PUBLIC ENTITY GROUP■ ■ ■ rr ACCOMPLISHMENTS AND AREAS OF EXPERTISE: Deborah joined the Alliant Insurance Services team in 2006. She brings a wealth of industry expertise in handling large and complex accounts that require a full range of insurance services. Deborah specializes in ports and public entities with a focus on environmental and marine liability. Deborah assisted in developing and implementing a nationwide Ports and Harbors Program. She tailored the manuscript forms to achieve maximum risk transfer for these multi- faceted accounts. This program encompasses some of the largest ports in the country. Deborah further extends her expertise working with risk purchasing groups and insurance pools. DETAILED EXPERIENCE: �. Deborah is a seasoned professional offering over three decades of experience in the insurance industry. Her insurance brokerage career started with Marsh & McLennan. She then held lead broker positions at Willis and AON. With her multifaceted background, Deborah is often ,. consulted on environmental liability and professional liability issues. Deborah also serves as the practice leader for ports and harbors. EDUCATION, PROFESSIONAL, AND PERSONAL INTERESTS: Deborah graduated with a Bachelor of Arts Degree in Literature and Education from the ■ University of Washington, located in Seattle. She a licensed Property and Casualty Broker in the State of Washington and has completed many hours of continuing education. Deborah also holds ■ licenses in ten additional states. Well-rounded, Debbie earned the professional designations of ■ Charter Property and Casualty Underwriter (CPCU) and Associate in Risk Management-Public Entities (ARM-P). ■ Outside of work, Deborah enjoys time with her family, traveling, and walking. 1 a PRESIDENTTHOMAS LONG, CPCU, ARM-P, RPLU FIRST VICE lk,PUBLIC ENTITY GROUP ® ACCOMPLISHMENTS AND AREAS OF EXPERTISE: ® Tom joined the Alliant Insurance Services team in 2006. Prior to joining Alliant, he spent 21 years managing the Marketing Department of the Seattle office of a large national brokerage firm. He offers a ® wide breadth of expertise including the development, implementation, and management of property and ® casualty insurance and self-insurance programs, and alternative risk treatment solutions. Tom managed the marketing and placement of property and liability coverages for some of the largest public entities, ports, and businesses in the country. Tom was instrumental in setting up several Risk Purchasing Groups for public entities and ports, creating ■ a mechanism for competitively priced liability placements with broad coverage tailored specifically to members of the groups. w DETAILED EXPERIENCE: ■ Tom currently serves as First Vice President of the Public Entity Group. Since joining Alliant, Tom has provided insurance and risk management services to King County, Kitsap County, City of Kent, Bellevue . School District, Renton School District, numerous ports including Seattle, Tacoma, and Los Angeles, Alaska Public Entity Insurance, City & Borough of Juneau, and City & Borough of Ketchikan, among ■ others.He has over 30 years of underwriting and insurance brokerage experience. LJ EDUCATION, PROFESSIONAL, AND PERSONAL INTERESTS: Tom received his Mathematics Degree from Portland State University. In addition,he holds the following designations: Chartered Property Casualty Underwriter(CPCU), Associate in Risk Management —public entity emphasis(ARM-P), and Registered Professional Liability Underwriter(RPLU). He is a past President(two terms) of the Washington Chapter of the Insurance Brokers Association,a past ® Director of the Washington State Surplus Lines Association, and was a member of the Washington ■ Insurance Commissioner's Agents' Advisory Council for 12 years. He was instrumental in coordinating the rewrite of the Alaska statutes regulating the placement of surplus lines insurance. When he is not practicing his profession,Tom enjoys many outdoor activities and travelling. N 1 BRIAN WHITE FIRST VICE PRESIDENT `111 k,PUBLIC ENTITY GROUP IL ACCOMPLISHMENTS AND AREAS OF EXPERTISE: Brian joined the Alliant Insurance Services team in 2001. He presents clients with an excellent understanding of commercial insurance coverage as well as strong brokerage placement and negotiation skills. Brian is well versed in carrier appetites for public entity business, and has developed a specialty in the transit insurance marketplace. Brian was recently selected as a Risk & Insurance Magazine "Power Broker"in the Public Sector"under 40"category. DETAILED EXPERIENCE: Brian currently serves as First Vice President for the Public Entity Group. His work history includes brokerage services for California Transit Insurance Pool, Tri-County Metropolitan Transit District, San Diego Metropolitan Transit System, North County Transit District, Sonoma-Marina Area Rail Transit, and the Washington State Transit Insurance Pool. He is also a member of the brokerage team which serves Golden Gate Transit and King County, WA (Transit). Brian's placement expertise includes Property,Liability,and Workers' Compensation lines of insurance. EDUCATION, PROFESSIONAL, AND PERSONAL INTERESTS: Brian earned a Bachelor of Science degree in Finance from the University of Arizona. He is a licensed Property & Casualty retail broker in Washington, California, and a handful of other states. Brian has completed coursework towards the completion of the Chartered Property & Casualty Underwriter (CPCU) and Associate in Risk Management (ARM) designations. Mr. White is active in the Public Risk Management Association, American Public Transportation Association's Risk Management Committee, ® and the Public Agency Risk Managers Association. ■ Outside of his profession, Brian enjoys spending time with his wife and son, and a variety of outdoor activities in the greater Seattle area. 1 r r CRM, CIC, r APA ACCOUNT PUBLIC ENTITY GROUP ■ ACCOMPLISHMENTS AND AREAS OF EXPERTISE: ■ Vicki joined the Alliant Insurance Services team in 2006. Her specialty is public entity clients with an ■ emphasis on ports. Vicki has built strong relationships with her clients and prides herself on being responsive to their needs. Vicki is an active member of the Public Entity Group in Seattle and enjoys planning social activities for L the office to help build team spirit. 0 DETAILED EXPERIENCE: LVicki has been in the insurance business for over twenty-five years working both the company side and ■ the broker side. ■ Her expertise ranges from marine, general liability, commercial auto, public official's liability, and ■ professional liability coverages to property lines with an emphasis on risk purchasing groups. EDUCATION, PROFESSIONAL, AND PERSONAL INTERESTS: Vicki earned her Certified Risk Management designation in 2011 and her Certified Insurance Counselors (CIC) designation in 2006. She is currently working on the Chartered Property Casualty Underwriter Professional Designation(CPCU). In her spare time, Vicki enjoys baking, reading, shopping, and spending time with her family and friends. One of her favorite activities is taking road trips with her husband. X111 how W ® � r RENEE JUDGE, AA1, AIS ACCOUNT MANAGER . D L PUBLIC ENTITY GROUP ACCOMPLISHMENTS AND AREAS OF EXPERTISE: ■ Renee joined the Alliant Insurance Services team in 2002. She specializes in servicing large, complex accounts that require extensive industry knowledge and attention to detail. Her day-to-day duties include analysis and comparison of insurance coverage forms, creating and maintaining insurance specifications, ■ updating large property schedules, reviewing claims summaries, preparing proposals, and allocating premiums to assist clients with internal recharges. Some of the larger accounts Renee services are King ■ County, the Port of Los Angeles, the Pacific Northwest Port Association, the Port of Galveston, and the ■ California Association of Port Authorities. DETAILED EXPERIENCE: ■ Renee started her insurance career at Safeco Insurance Company and now has 20+ years' experience in the industry providing service and solutions to clients. Her book of business is extensive including ® Property, Commercial General Liability, Automobile, Worker's Compensation, Excess Liability, Aviation, Crime, Public Officials Liability, Employment Practices, Fiduciary Liability, Professional Liability,Pollution and Marine Insurance. EDUCATION, PROFESSIONAL, AND PERSONAL INTERESTS: Licensed by the California Department of Insurance as a Fire and Casualty Broker-Agent, Renee has ■ completed many hours of continuing education. In addition to being licensed by the State of California, Renee is also licensed in 5 other States. She has earned the Accredited Advisor in Insurance (AAI) and Associate in Insurance Services(AIS)designations. Outside of work,Renee enjoys spending time with her family,reading and relaxing at the beach. II � � r 1W GROUPCONNI E. SCOTT ACCOUNT MANAGER UBLIC ENTITY ® ACCOMPLISHMENTS AND AREAS OF EXPERTISE: Conni joined the Alliant Insurance Services team in 1999. Her experience includes the maintenance and service of a number of major public entity accounts. These accounts include: Sound Transit, City of Spokane, State of Wyoming, State of Montana, P.U.D. #1 of Chelan County, Tri-County Metropolitan Transportation District of Oregon, City of Ketchikan, City of Kent and the State of Washington. She has a strong technical background that includes the analysis and maintenance of a number of loss sensitive LJaccounts, large deductibles and self-insured retention programs, multi-line retro programs and other self- funded programs. DETAILED EXPERIENCE: Conni has over 25 years of experience in underwriting and servicing commercial accounts including General Liability, Automobile, Workers' Compensation, Excess Liability, Property, Inland Marine and Crime policies. She has 20+ years' experience with large risk management accounts with multiple lines of coverage as well as specialty experience with Transportation, Energy and Public Entity accounts. 0 EDUCATION, PROFESSIONAL, AND PERSONAL INTERESTS: ® Licensed by the State of Washington, Conni is also licensed in 7 other States. � s :ALN DAIEL HOWELL, SENIOR EXECUTIVE VICEPRESIDENT DIRECTOR,MANAGING GROUP ACCOMPLISHMENTS AND AREAS OF EXPERTISE: Daniel joined the Alliant Insurance Services team in 1998 following over a decade with Fred S. James and Sedgwick. He offers a wide breadth of expertise including the development, implementation, and management of property and casualty insurance and self-insurance programs. Dan understands issues for ■ entities with complex operations and is especially adept at building consensus among a broad array of stakeholders. DETAILED EXPERIENCE: Dan currently serves as the Managing Director for the Public Entity Group. Since joining Alliant, he has served as Program Director for the California State University Risk Management Authority(CSURMA), and the broker for the University of California, State of California, Port of Seattle, and Port of Oakland, among many clients. His multi-line property and casualty experience dates from 1987, when he started with Fred S. James, which later became a part of Sedgwick. His expertise ranges from professional liability, public officials liability, educator's legal liability, excess workers' compensation, to major property lines. EDUCATION, PROFESSIONAL, AND PERSONAL INTERESTS: Daniel holds an A.B. in History from Stanford University and a Juris Doctorate from UC Hastings College of Law. He also possesses designations in good standing for both the Chartered Property Casualty Underwriter (CPCU) and the Associate in Risk Management (ARM-P). Daniel is a licensed Property& Casualty retail and wholesale broker in several states, and he is an active member of the State Bar of California. When he is not practicing his profession,he enjoys spending time with his family and outdoor activities. 1W j low ACCOMPLISHMENTS AND AREAS OF EXPERTISE: Robert joined the Alliant team in 2002 and created the Alliant Brokerage Claims Advocacy practice. He manages a team of highly trained professionals who provide technical claim service to various Alliant practice groups. Some of these groups include Public Entity, Healthcare, Commercial, and Real Estate. In addition, he takes the lead handling large losses, complex losses, and losses with coverage disputes. His expertise also covers real estate development and management and includes high-rise office risks, industrial office/manufacturing risks, hospitality industry, regional shopping centers, and strip mall shopping centers. Robert is well versed in claims handling for construction risks including OCIP, high ® tech, biotech, and higher education clients. Currently, he serves as the Alliant client advocate for all ■ aspects of the insurance claims process. DETAILED EXPERIENCE: ■ Robert is a seasoned professional who offers almost four decades of extensive experience handling property and casualty claims. His insurance career began with Bayly, Martin, & Fay. He then moved on to an advanced position with Morris & Associates, and then to a Claims Executive at Marsh Risk ■ Services. Robert began leading the Claims Advocacy Practice team at Alliant over ten years ago. He is an in-demand speaker and frequently addresses audiences at risk management conferences including ■ PARMA, the Building Owners Managers Association (BOMA), and the International Council of Shopping Centers (ICSC). He has been a guest speaker for the California State University Risk Management Authority (CSURMA) on multiple occasions. In addition, Robert was an instructor at the . College of Alameda where he taught classes on personal insurance coverage, claims handling, and adjusting. ■ EDUCATION, PROFESSIONAL, AND PERSONAL INTERESTS: He is a charter member of the Registered Professional Adjusters Program as a Registered Professional ■ Adjuster(RPA)and is a former faculty member of the International Council of Shopping Centers (ICSC). When Robert is not handling claims, he spends time with his family. He enjoys basketball and for many ® years coached youth and woman's teams. Recently, Robert added a few new interests that include learning to play piano and oil painting. I � L THOMAS BRYSON, PE, ARM SENIOR VICE PRESIDENT GROUPL PUBLIC ENTITY ACCOMPLISHMENTS AND AREAS OF EXPERTISE: ■ Tom joined the Alliant Insurance Services team in 2003 following over 15 years with FM Global, Marsh, ■ and Johnson & Higgins. He brings his vast expertise including the development, implementation, and management of property, cyber, and pollution insurance programs. Well-versed regarding issues for ■ entities with complex insurance placements, Tom handles property, boiler and machinery, builder's risk, cyber liability, and terrorism. Currently, he manages the Alliant Property Insurance Program (APIP), ■ which is the largest property placement worldwide. In addition, he is a co-manager for the Hospital All ■ Risk Property Program(HARPP),this being the largest group placement for hospitals nationwide. DETAILED EXPERIENCE: ■ Tom is currently a Senior Producer in the Public Entity Group. In addition to his program management responsibilities, Tom served as the lead broker for the State of Montana, the State of Wyoming, the ■ Metropolitan Airport Commission (MAC), CSAC Excess Insurance Authority, and San Diego Unified ■ School District. While his focus is property insurance, Tom is adept handling casualty placements and management responsibilities for many of his clients. His expertise is vast and covers ports and airports, ■ states and counties,public utilities, and healthcare. EDUCATION, PROFESSIONAL, AND PERSONAL INTERESTS: Tom holds a BS in Mechanical Engineering from California State Polytechnic University, located in Pomona, California. In addition, he possesses designations in good standing as a Professional Fire Protection Engineer in the State of California and as an Associate in Risk Management (ARM). Tom is a ■ licensed Property & Casualty retail broker in California and has non-resident licenses in many other states. ■ When he is not practicing his career, Tom actively participates in many sports and outdoor activities. He is also an automotive enthusiast. N VICE PRESIDENT RISK CONTROL GROUP ■ ACCOMPLISHMENTS AND AREAS OF EXPERTISE: ■ Brent joined the Alliant Insurance Services team in 2008 bringing over 17 years of experience working with international insurance carriers and brokerage services. Brent is adept at providing service customized to clients needs including property risk control, fire protection, crime prevention, safety ■ compliance, custom training videos, and safety culture development. DETAILED EXPERIENCE: ■ Brent currently serves as the Vice President of Alliant Risk Control Consulting. He presently oversees loss control services for the California State Universities Auxiliary Organizations 23 campuses and provides onsite training, customized risk solutions, regulatory compliance, and risk evaluations. Brent ■ began his professional insurance work in 1996 when he worked internationally providing safety and risk management consulting services for several large insurance companies and insurance brokerage firms. ■ His broad range of industry expertise includes industrial hygiene, security, ergonomics, accident investigations, fire protection, pre-construction planning, and crime prevention through environmental design. EDUCATION, PROFESSIONAL, AND PERSONAL INTERESTS: ■ Brent has a Bachelor of Science in Environmental Health from Illinois State University. He holds designations as a Certified Safety Professional (C.S.P.) from the Board of Certified Safety Professionals; an Advanced Certificate in Crime Prevention through Environmental Design (CPTED); and is a OSHA 10 hour and 30 hour Industry Outreach Program Trainer. Brent is also a professional member of the American Society of Safety Engineers(ASSE). ■ When away from Alliant, Brent spends his time with family and practicing guitar. Brent also enjoys the rigorous sport of endurance mountain bike racing. LW ACCOMPLISHMENTS AND AREAS OF EXPERTISE: . Ken chose to join the Alliant team in 2011 following over two decades of solid insurance brokerage experience. His core expertise is in the area of developing, designing, and directing consolidated insurance programs. Ken offers an extensive background in large, complex program management in both ■ the commercial and public entity sectors, including construction,risk, and financial management.. DETAILED EXPERIENCE: Not a neophyte to the profession, Ken began his professional insurance career in 1994. Over the years,he enjoyed various senior management positions at a number of high technology computer software and consulting firms, including one he co-founded. In addition,Ken also served his country as a United States Air Force Officer.Prior to joining Alliant,Ken served as Senior Executive Vice President at Aon Risk Insurance Services where he played an executive oversight role on all owner controlled and contractor controlled insurance programs. Currently,Ken serves as a Senior Executive with Alliant's Construction Services Group.At Alliant,he works with project owners,contractors, and homebuilder/developers both in the United States and internationally to provide risk advisory services.Ken is directly responsible for managing and directing many large programs for ports,healthcare,university systems, airports, school districts, and other various public entity projects. EDUCATION, PROFESSIONAL, AND PERSONAL INTERESTS: Ken has a well-rounded education that includes a Bachelor of Science degree in Aerospace Engineering from the University of Texas,a Master of Science degree in Systems Management from the Air Force Institute of Technology, and an Executive MBA from the AEA/Stanford Executive Institute. Licensed in all states as a Fire&Casualty Broker and Agent,Ken stays current by attending numerous hours of continuing education. When not practicing his chosen profession,Ken enjoys golfing,boating,and helping the Boy Scouts of America. RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES B. Insurance Requirements in Contracts (IRIC Manual) ■ Please refer to the following page(s). Affiant i F F } yr �a 5 f» w! �r omm, y'y tiF �3� Y r fr� F 1. � a Y � -" �Affiant INTEGRATED INSURANCE&FINANCIAL SERVICES This manual was originally developed and placed in public domain to benefit public agencies. Sections of this current edition have been updated by Alliant Insurance Services, Inc. The manual is intended to provide general guidelines. Alliant does not warrant or guarantee the legal effect or the appropriate use of the contents. Alliant recommends that users consult with their legal counsel •� when considering contractual language. Forms from the Insurance Services Office (ISO) are reproduced and included with ■ permission of the ISO. M M M M M I � .r Insurance Requirements in Contracts Edition:December 2013 Version 8.1 a A`y4lllant INTEGRATED INSURANCE&FINANCIAL SERVICES IRIC VERSION 8.1 TABLE OF CONTENTS ■ Foreword...............................................................................................................................................1 ■ Frequently Asked Questions................................................................................................................3 Chapter One: Contractual Risk Transfer—The Basics.................................................................12 ■ Step 1:Analyze the Risks and Relationships.......................................................................................13 Step2:Use a Hold Harmless.................................................................................................................13 Step 3: Select the Appropriate Insurance Specifications.....................................................................14 Step4:Verify Coverage.........................................................................................................................17 Step5:Report Claims Promptly............................................................................................................17 Exhibit A: Insurance Requirements for most Contracts.....................................................................19 ■ Chapter Two: Insurance Specifications for Most Contracts.........................................................23 Exhibit 1: Insurance Requirements for Most Contracts......................................................................39 Exhibit 2: Insurance Requirements for Professional Services............................................................42 Exhibit 3: Insurance Requirements for Lessees..................................................................................45 Exhibit 4: Insurance Requirements for Vendors.................................................................................47 . Chapter Three: Construction&Environmental Services............................................................49 Exhibit 5: Insurance Requirements for Construction Contracts..................................................... 58 Exhibit 6:Insurance Requirements for Environmental Contractors and/or Consultants..................62 SampleForms: Surety Bonds................................................................................................................65 ChapterFour: Special Situations.....................................................................................................67 Cyber Risks&Electronic Data Processing(EDP)..................... Teaching,Coaching,and Childcare...................................................................................................... 68 Contractswith Private Parties................................................................................................................69 Instructors................................................................................................................................................69 ® Special Events&Short Term Rentals...................................................................................................70 Other Specialized Professional Liability Insurance.............................................................................70 Investment Bankers Errors and Omissions Insurance........................................................70 Garagekeeper's Legal Liability Insurance............................................................................................70 Marina Operator's Legal Liability Insurance.......................................................................................71 Exhibit 7: Insurance Requirements for Rental of Facilities................................................................72 Exhibit 8: Insurance Requirements for Instructors..............................................................................74 ChapterFive: Verify Coverages.......................................................................................................77 Typical Contractors Insurance Program...............................................................................................77 ■ Certificates of Insurance Guidelines.................................................................................................... 78 Additional Insured Endorsements.........................................................................................................81 OtherEndorsements...............................................................................................................................89 PrimaryInsurance................................................................................................................89 ■ Waiver of Subrogation........................................................................................................89 Noticeof Cancellation.........................................................................................................89 CustomizedEndorsements..................................................................................................90 EntitySupplied....................................................................................................................90 AppendixA: Risk Assessment...........................................................................................................91 Insurance Requirements in Contracts Edition:December 2013 Version 8.1 ii ■ AAffiant INTEGRATED INSURANCE&FINANCIAL SERVICES ■ ■ Severity-Related Questions for the Contract Risk Analyst.................................................................92 Checklist for Evidence of Insurance.....................................................................................................94 AppendixB: Common Insurance Industry Forms.........................................................................97 ■ Appendix C: Sample Hold Harmless Agreements........................................................................157 AppendixD: Sample Checklists.....................................................................................................163 ■ Appendix E: Resources...................................................................................................................167 ■ rrr Insurance Requirements in Contracts Edition:December 2013 Version 8.1 r r RESPONSE TO REQUEST FOR PROPOSAL PROPERTY&CASUALTY INSURANCE BROKER OF RECORD SERVICES APPENDIX ■ C. Sample Loss Control Report: Review of Risk Management and Loss Control Practices ■ Please refer to the following page. ■ Amant ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ALLIANT INSURANCE SERVICES, INC. Review of Risk Management [id Loss Control Practices ■ ® City of Renton ■ Risk Management Consulting Services -71 ■ ■ ■ ■ .t W � Y iLWWI -1 6 fitwar, ��t Alliant Insurance Services, Inc. • 720 Olive Way, Suite 1700 Seattle, WA 98101 (206)204-9140 Phone • (206)204-9205 Fax riskrnanagement@alliant.com w ■ ■ ■ Supplemental Proposal Support Materials ■ TABLE OF CONTENTS ■ ■ ■ TITLE PAGE Risk Management Assessment Tools 3 Sample Best Practices for Municipal Risk Management 4-9 ■ Sample Action Plan 10-11 ■ Risk Management Committee Charter 12-14 ■ Sample Municipal Risk Management Checklists and Fact Sheets ■ (Demonstrating our experience and expertise working with 15 w municipalities) ■ Playground Risk Factor Evaluation 16-17 Playground Safety Checklist Municipal 18 Warning Signage for Accessible Ponds and Lakes 19 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ w ■ ■ ■ 1w 1 1w bd w ■ RISK MANAGEMENT ■ ASSESSMENT TOOLS ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Page 3 ■ Ak ffian Operational Best Practices for Municipalities Background Many of our municipal clients have limited resources and labor and have asked Alliant Risk Management Services (ARMS) what specific Best Practices they should adopt that will address and help reduce the severity and frequency for property and casualty claims or loss incidents. Based on our experience with more than 200 cities and county clients nationwide and a review of hundreds of claims we have condensed what operational areas municipalities should focus their efforts on for the greatest return on invested resources. This document is based on our combined team's experience, consulting project work, and root cause investigations for municipalities nationwide. Best Practices Recommendations ARMS has developed a set of recommended risk management policies and procedures for our municipality clients. We continue to monitor and revise the recommendations based on claims experience, changes in exposures and liability, and the best practices of our clients. The focus of the recommendations is on those areas that lead to more than 80% of our claims. The areas currently addressed by policies include: • Vehicle Use and Operations - • Sewer Loss Prevention and Maintenance • Police Operations • Fire Operations • Sidewalk Maintenance • Urban Forest Management • Facilities Maintenance and Hazard Identification • Contractor Selection and Control • Road Maintenance • Contractual Risk Transfer • Playground Safety • Claim Reporting and Follow Up • ADA Compliance and Transition Plan • Aquatics Programs • Special Events The best practices recommended in each of the above categories are listed on the following pages. Municipal clients are encouraged to request specific policies and procedures referenced in the best practices from your ARMS consultant, as needed. If the municipal client currently has a policy or practice that meets or exceeds the recommendations they are encouraged to share them for review and feedback from the Alliant risk management team. Contact your ARMS consultant for more information, riskmanagement@alliant.com. page 4 Operational Best Practices for Municipalities Vehicle Use and Operations City has adopted a comprehensive fleet management program to include driver training (defensive driver training), driver screening and selection, vehicle use, non-owned vehicle use, and vehicle maintenance. Driver Selection and Training Measures There is a written program in place that is actively utilized as the basis for driver selection and screening of employees and prospective employees for driving related duties. There is evidence that employees with negative Motor Vehicle Records (MVR) activity as defined by the written municipal best practice standards are provided personnel counseling, training, rehabilitation, and/or removed from driving responsibilities depending on the nature and seriousness of the activity on their MVR or observed driving behavior. .... All employees who drive any vehicle on Agency business are enrolled in the Department of Motor Vehicles Pull Notice Program and MVRs are reviewed to prevent negligent retention. Note: Release required for ••� drivers whose license does not require participation in the PULL program. Vehicle Maintenance Measures +� Vehicles and records are maintained to meet standards and warranties relevant to the vehicles or equipment and to help defend negligence claims. Vehicle Operations Measures The City has adopted a vehicle use policy that includes a "distracted driver" policy covering the use of cell phones and other potential in-car distractions. All vehicle accident investigations reflect any "distracted driver' implication as part of the root cause analysis. Sidewalk Inspection and Maintenance City has adopted a sidewalk/walkway inspection, maintenance, and complaint response plan. Measures There is an effective, written City-specific procedure in place to minimize sidewalk defects such as raised offsets, tilts or steep cross slopes, sunken sections, spalling, improper repairs to surround structures such as .... drains, and offsets between public and private sidewalks. The City has passed an ordinance stating the abutting property owner is responsible for maintaining the ..� sidewalk and is liable for injuries to the public for failure to maintain, or the Council has considered and declined to pass such an ordinance. . �... The City has a written process in place to notice property owners to repair sidewalks, as allowed by the Streets & Highways Code, or has a program to repair sidewalks themselves. LThe City has a follow up procedure to ensure defects have been addressed by marking, barricading, etc. within reasonable periods. LThe City has a follow up procedure to ensure defects have been mitigated by the property owner or other responsible party within a reasonable period. Photographs are taken and maintained in Public Works to visually record action taken to guard against contact by the public with a hazardous sidewalk site. This will aid in defense against allegations of inaction by the City. Urban Forest Management (Trees and Vegetation) The City has a written urban forest management plan, which includes selection and placement of trees and provides for identification and mitigation of tree/shrub/vegetation related hazards. The City has an ordinance outlining the rights and responsibilities of tree owners Measures The City has passed an ordinance describing its ownership or control of trees in its jurisdiction and the �r responsibility of property owners to maintain their trees so as not to interfere with public safety or convenience. Failure to do so may result in action by the City and/or liability for the owner for any damages. There is a written process to select, situate, and maintain trees to minimize hazards, hardscape damage, and maintenance costs. Urban forest management is under the control and supervision of persons who have the necessary professional credentials and expertise to qualify as an urban forester or arborist. A written plan is in place and documented to provide for methodical, periodic inspection, care, maintenance, and complaint/emergency response for trees and other vegetation. Urban forest management plan inspection and monitoring frequency is prioritized by degree of exposure of the public to vegetation hazards. (i.e. obscured intersections, parks, playgrounds) This includes weed two abatement and other fire hazards. '� page 5 ... Operational Best Practices for Municipalities Sewer Loss Prevention and Management The City has an ordinance requiring backflow prevention devices that at a minimum meet the most current plumbing code. The City maintains a written program for risk assessment and review, regular inspection, preventive maintenance, and emergency response for its sanitary sewers stem. Measures An ordinance is in place that meets or exceeds current plumbing code requirements for backflow devices. Council meeting minutes reflect recommendations and cost justification by staff for adoption of an ordinance r... requiring backflow devices when events not addressed by the code occur, such as when a property owner suffers a loss, remodels, or sells the property. Key personnel have been trained to interact with property owners when responding to reports of sewer backup. Training topic outline and document templates are available for review. A written sewer inspection and maintenance procedure is in place and adherence to the procedure is documented. The protocols include identification and attention to"high frequency or impact areas" of the system. ice Ris . [bject c management is of the over s ris u an s u e t to the risk assessment and evaluation review process as conducted by representatives from all City Measures City written General Orders (GO's) or guidelines reflect dates indicating reviews and updates. Key policies are reviewed annually. mom The City uses a legal liability service or other qualified consultant for updated policy and procedure notification and advice. WAN City departments have adopted a"force options" approach to policing. Training records reflect this philosophy. AMW Code 3 driving standards are in place which reflect current legal liability and professional standards that minimize risk to others sharing roads with emergency vehicles. City departments comply with all State-mandated peace officer training requirements, including refresher training for perishable skills, and training to General Orders is documented. L Digital audio-visual technology in patrol vehicles, and digital audio recorders on person, are used to provide defense a ainst alleged police misconduct claims. I � TISKiii t5gmen exposure an s out be ... bject to the risk assessment and evaluation review process as conducted by representatives from all City artments. ... Measures The department has a written policy clearly defining if and how emergency response (Code 3) driving is permitted and executed. The department has equipment, procedures, and training in place to address equipment/gear that may not .,� be enclosed or secure and may fall from the apparatus. Dispatch has either been transferred to another agency or detailed training, data and communication management, and technology are used to prevent dispatch error. Facilities Maintenance and Hazard Identification City owned and/or operated facilities, including those for which joint use agreements are in place, present risk exposures to users and neighboring facilities. A process for scheduled, documented inspection of City buildings and other facilities should be in place. Measures Checklists or other tools used to document inspections are available for review. Action items are prioritized and are assigned for correction with a due date for completion. Completion date Mir is recorded. All new or newly acquired facilities have a documented risk assessment review for structural and operational risk. Buildings that have not been determined to be adequately protected against natural disaster or fire are not .... used for public gatherings and classes nor leased to others. amp ,�.. page 6 Operational Best Practices for Municipalities Playground Safety City playgrounds must be designed, inspected, and maintained in compliance with the State of California requirements, which are described in The Handbook for Public Playground Safety and ASTM F187-95. _ Measures A current playground equipment inventory exists for each playground. An annual playground audit is available for review and reflects equipment as stated in the inventory. The audit is conducted either by a Certified Playground Safety Inspector(CPSI) or personnel trained by a CPSI. Ln Documented monthly inspections and repair records are available for review. Inspections are conducted and ■ signed off by a CPSI or staff who was trained and overseen by a CPSI. Depending on frequency and intensity of use, weekly and/or daily inspection checklists are available for audit. For playgrounds that do not comply with accessibility requirements under the Americans with Disabilities Act (ADA), an action plan with time tables to bring the site into compliance is available for review. ,�.. Contractor Selection and Control Additional selection and evaluation criteria are used along with "low bidder" to ensure safe, cost effective, completion of City projects for large projects. LMeasures City has contractor selection criteria that includes reference and site checks, interviews, insurance loss history, L&I citation history, and license verification for general and all subcontractors. The contractor has a safety program (IIPP) in place. LThe contractor has site protection, traffic control, trained workplace safety zone specialists, inspection, and debris removal plan(s) in place. (as appropriate) Contracts are reviewed for safety plans, staffing, oversight, and accountability. Ir City has documented planning, oversight, and quality control meetings with contractor. r.m Road Maintenance r.. City has a systematic process in place for inspection, maintenance, repair and emergency response for roadways. Measures LThe City Council and/or City Engineer signs off on all road site protection plans to preserve governmental immunity. iCity has on staff or access to a State-DOT trained work zone safety specialist to over see and approve all work zones. b,. To enhance the City's ability to defend claims, protection of work sites should be documented in photographs to illustrate protection provided to ensure drivers/pedestrians/cyclists do not come in contact with hazardous conditions. Contract language is signed by contractors accepting responsibility for the clean up and debris removal from work sites to reduce the potential for damage to vehicles or cyclist. City has adopted a minimum Pavement Maintenance Index to serve as the standard to which road surfacing is to be maintained. Example: PMI=70 Contractual Risk Transfer Bad All contracts in which the City is involved are part of the risk management review process. Contracts should ® have appropriate hold harmless provisions and insurance requirements. Measures A contract review process is in place to provide for consistent contract administration and oversight. Contracts contain appropriate hold harmless clauses and insurance requirements. All contracts are reviewed and approved by legal counsel to ensure that the City is adequately protected and risk is transferred or shared as intended. Contract administrator obtains required insurance documentation prior to work commencing. i Raw page 7 Operational Best Practices for Municipalities L Claim Reporting and Follow Up Successful claim resolution is ensured by good communications among claimant, City, and adjuster with immediate reporting of claims. Measures L City has assigned a claims liaison to facilitate flow of information to and from the City needed to evaluate and resolve claims. LDesignees from each City City are identified and trained to provide claimants with information and address ® their needs without inappropriately increasing the liability of the City. ■i� All claims are reported promptly to the city for payment or rejection as appropriate. Property damage claims not exceeding 10% of the City's deductible may be paid directly by the City, and those claims are also reported to the city, to maintain an accurate record of claim frequency and severity and to provide trending information. ADA Compliance and Transition Plans The Congressional passage of the Americans with Disabilities Act (ADA), which became effective in 1992, _. dictates equal access to public buildings and facilities, along with hiring and other EEOC-enforced Iprovisions Measures Cit s have an ADA transition plan in place. Documentation verifies action taken on transition plan items. Five-year budget and development plans reflect budgeting for ADA compliance projects. LAlternative procedures are in place to provide access for disabled persons to buildings and facilities until full structural access is achieved. �, ,.,,t.,, 40"Itics Programs The program measures below are not a comprehensive list of all the important practices, which should be in place to help ensure a well-managed and safe aquatics operation. However these measures are good measures to use in the self-evaluation process. They will assist in ensuring that a City-managed aquatics All staff responsible for facility operations and swimmer/participant safety are certified by a recognized �.. agency and have received site-specific training with clear assignment of responsibilities. This includes validated, current certifications; required training in pool and/or concession operations; equipment; safety; security; and emergency response, including use of oxygen delivery and use of automated external defibrillators if available. W= At lease one facility staffer is certified as a Lifeguard Manager, or has attended educational sessions on Lifeguard Management and has experience in supervision. LFacility has all recommended rescue equipment, communication devices, posted warnings, information, and instruction signage present and in operable condition. how Equipment such as diving boards, slides, blobs, and other play equipment are correctly installed for water depth, weight, and use requirements as recommended by the YMCA or other recognized standards. LDocumented inspections of this equipment are performed daily. Lifeguard rotations are no longer than 20-30 minutes with change of body position every 5-10 minutes. If Dedicated supervision is provided forspecial equipment such as slides. ir. Starting Platforms are only in place for competitions, and are only used under close supervision by participants that have been properly educated in their use. "No diving" is marked clearly on the pool deck in all areas that have less than 5 feet of water depth. Diving instruction should not take place in less than 9 feet of water. how A Lifeguard on duty supervises all programs and rentals. ■ Daily pool maintenance and water quality logs are on site and kept up to date. L `. ... page 8 Operational Best Practices for Municipalities Special Events & Facility Rentals LThe program measures below are not a comprehensive list of all the important practices which should be in place to help ensure an incident-free, well-managed and successful special event. However these measures r„ are good measures to use in the self evaluation process. They will help ensure the planning and execution of La City-sponsored event or facility rental includes the most highly-recommended management controls. Contractual Risk Transfer and Contractor Selection and Management Best Practices are followed when issuing permits for an event, renting out a facility, or in hiring or screening contractors for the event. LIf the permittee, renter, or contractor does not have insurance coverage as referenced in the Contractual Risk Transfer best practices, Special Events Insurance, including liquor liability coverage for anyone serving has alcohol, is obtained by the sponsor and/or required by all participating organizations Any organization serving alcohol must be properly licensed, have properly trained servers, and control quantities. Security is provided for any event with alcohol. LFor outdoor events, a pre-event safety audit and inspection of site, permanent and temporary structures, lighting, communications, accessibility, emergency plans, traffic and crowd control are conducted and .... documented. Unless provided by an independent contractor, shuttle and parking services are provided by employees who meet the recommended written Driver Selection and Training Best Practices, in vehicles which meet applicable safety standards. ■ w ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ page 9 ■ 1)Illiant . City/Town of Annual Risk Management Action Plan Program Year 1. Using data from your Frequency and Severity Trending Worksheet, identify the 5 most frequently occurring and 5 most severe types of general liability claims occurring for the last 5 years, i.e. 7/1/09 to 7/1/14. Create additional justifiable risk exposure action plans as needed. Top 5 GL claims Top 5 GL claim types Top 5 priorities to by frequency by cost address based on cost and frequency 2. 2. 2. 3. 3. 3. 4 4. 4. 5. 5. 5. Additional Risk Exposures L iii L page 10 Alliant Insurance Services, Inc. • 720 Olive Way• Suite 1700 • Seattle, WA 98101 PHONE (206) 204-9140• FAX (206) 204-92058 •www.alliant.com ■ ■ &Affiant 2. Establish action plan for each of the top 5 priority risk exposures. Include measurable action items, and define who is accountable or responsible, and establish target dates for update or completion. ■ Top 5 priorities Action needed to Target date for ■ to address based reduce or eliminate Person on cost and exposure and/or responsible update or L frequencyrelated costsillm completion 1. 6 2. 3. ■ L 4. .... 5. Additional Risk Exposures mom r page 11 Alliant Insurance Services, Inc. • 720 Olive Way• Suite 1700• Seattle, WA 98101 PHONE (206) 204-9140• FAX (206) 204-9205•www.alliant.com ■ AAk l ant Risk Management Committee Charter 1. Purpose The Risk Management Committee (RMC) provides oversight and coordination for ■ the City's safety and risk management programs. These programs include, but are not limited to, employee safety and health, workers compensation, general liability, property, vehicle and financial risk management. Its members provide data, information, and analysis of the City's actual and potential risk exposures to its departments and Council. 'This information Ld provides the basis for allocation of resources, risk control and mitigation, and adherence to the City's Risk Management Policy. .... 2. Membership a. The committee is chaired by the designated Risk Manager. .�.. b. Permanent members include: i. Department heads .� ii. City Manager iii. Finance Director iv. Chair of the City Safety Committee (if separate) c. Other participants may include those with needed technical expertise. Note: If this committee is combined with the Safety Committee, membership r.. should include representatives from employee labor groups. 3. Meeting Frequency ban The Risk Management Committee meets bi-annually or on an emergency basis. (If combined with Safety Committee, it must meet quarterly to comply with the City's IIPP requirements). The schedule for these meetings should allow for risk management goals and action plans to be addressed in the City's annual •� budgeting and Capital Improvement Program (CIP) process. 4. Role and Function of the Committee a. Trend analysis and monitoring of data relating to accidents and claims.2 b. Review claims made against the City and their costs to identify major cost areas and prioritize action plans. i i 1 The inclusion of the City Council in this instance is optional z Alliant Insurance Services can provide a Management Data Report twice yearly to assist this process.Workers' compensation insurers,TPAs or JPAs may provide similar information for employee injuries. Internal logs and records should be used as well. page 12 Alliant Insurance Services, Inc. •720 Olive Way•Suite 1700•Seattle,WA 98101 .� PHONE(206)204-9140 9 FAX(206)204-9205•www.alliant.com -- Al/leant c. Identify and evaluate risk exposures including financial, infrastructure, safety and health of employees and the public, vehicle operations, and other areas �. of concern. Cl. Evaluate and recommend risk mitigation and control strategies. e. Review risk financing options. f. Ensure risk management programs are effective and support the City's Risk Management Policy. g. Review inspection programs, findings, and safety and health issues submitted by employees, safety committees, and citizen groups which have City-wide .� implications. h. Evaluate proposed programs, events, and major equipment purchases to ..� determine if they exposure the City to unacceptable levels of risk, or recommend ways to minimize their risks.3 i. Review and ensure the quality of accident investigations performed by ... departments. j. Develop and maintain a protocol for communicating information following a serious safety or health incident to Council employees, and the public. This should include interaction with media representatives. 5. Committee Deliverables a. Meeting Minutes b. Prioritized Action Plans based on trends or potential exposures. c. Recommendations to persons/groups of authority regarding safety and risk .... issues which may require policy change. Cl. Records of follow up and action plan completions 6. Authority a. The Risk Management Committee has the authority, with the approval of the City Manager and Finance Director, to authorize action plans to address significant trends or risk exposures which could negatively impact the city. ... Negative impacts may include human suffering; financial, cultural, or political losses; and interference with the City's ability to perform the necessary functions of local government. 7. Committee Performance Measures a. The RMC maintains a current list of five to ten significant risk exposures, which are prioritized according to potential impact on the City. b. The RMC develops action plans annually to address the City's most frequent and/or severe claim types. These may include, but not be limited to, workers' compensation, liability, vehicles, or property damage. aim 3 The Risk Evaluation tool in the Alliant Municipal RM Manual may assist in the evaluation process. Alternatively, Alliant's Loss Control Consultants can provide a written Risk Management Program Assessment. page 13 Alliant Insurance Services, Inc. •720 Olive Way•Suite 1700•Seattle,WA 98101 """ PHONE(206)204-9140•FAX(206)204-9205•www.alliant.com Affiant c. Meeting minutes reflect the status of action plans, active follow-ups, and steps to implement plans. ..., d. Risk exposure identification and action plan summaries are provided to all employees and suggestions for mitigation considered. page 14 w Alliant Insurance Services, Inc. • 720 Olive Way•Suite 1700 •Seattle,WA 98101 PHONE(206)204-9140 • FAX(206)204-9205 •www.alliant.com ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ SAMPLE MUNICIPAL RISK MANAGEMENT ■ CHECKLISTS AND FACT SHEETS ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ page 15 r Your City Playground Inspection l�///ant Park/Playground Location: Inspected By: Risk Factor Evaluation LOCATION: YES NO SUPERVISION 1. Adults present when children are on equipment 2. Children can be easily viewed when on equipment 3. Children can be viewed in crawl spaces nrn 4. Rules posted regarding expected behavior bow AGE-APPROPRIATE DESIGN L 1. Playgrounds have separate areas for ages 2-5 and 5-12 L 2. Signage indicating age group for equipment provided 3. Platforms allow change of direction to get on/off structure 4. Platforms have appropriate guardrails 5. Equipment design prevents climbing outside the structure 6. Supporting structure prevents climbing on it r.. FALL SURFACING; r.. 1. Appropriate surfacing provided 1111110 2. Six foot use zone has appropriate surface L 3. Appropriate depth of loose fill provided 4. Concrete footings are covered Lw 5. Surface is free of foreign objects EQUIPMENT MAINTENANCE ...i 1. Equipment is free of broken parts �. 2. Equipment is free of missing parts 3. Equipment is free of protruding bolts now 4. Equipment is free of noticeable gaps ... 5, Equipment is free of head entrapments 6. Equipment is free of rust 7. Equipment is free of splinters 8. Equipment is free of cracks/holes page 16 Alliant Insurance Services, Inc. - 720 Olive Way•Suite 1700- Seattle,WA 98101 i PHONE(206)204-9140- FAX(206)204-9205•www.alliant.com dW ' `761ffiant Scoring: For every YES, your playground receives one point. Add up the 4. number of points for each section. Supervision Age-Appropriate Design Fall Surfacing ...,. Equipment Maintenance TOTAL 20-23 = A Congratulations on having a SAFE playground. Make sure you maintain this level of excellence. +� 16-19 = B Your playground is on its way to providing a SAFE environment for children. Work on the areas checked NO. L 12-15 = C Your playground has potential for being hazardous for children. La Take corrective measures. 8-11 = D Children are at risk on this playground. Start today and make improvements. N 7 and Do not allow children on this playground. L Below N page 17 Alliant Insurance Services, Inc. • 720 Olive Way• Suite 1700• Seattle, WA 98101 ` PHONE (206) 204-9140 - FAX (206)204-9205•www.alliant.com W hi A'Affiant Ld Aid Playground Safety Checklist Playground Name/Location Date: Person Completing Inspection: COMPLETEDA. OVERALL STRUCTURI,' NEEDS ATTENTION I. l ootin s are not exposed, cracked, or loose 2. Clamps show no signs of slippage, cracking,or failure rr.., 3. Clamp drive screws and/or bolts are secure 4. Welds are intact and free of cracks on: a. Slide and deck enclosures b. Challenge ladders c. Swing,ring,trek,and track ride cross beams d. Arch,curly,and pipe climbers e. Mounting blocks 5. No rust or corrosion evident 6. No splintered,cracked,or otherwise deteriorated wood (pay special attention to areas where chains or rails thread through the wood 7. No scratched,chipped,or peeling paint 1C-- 8. Metal parts show no visible cracks,bending,warping,or breakage 9. No broken or missing arts (e.g. bolts,nuts, screws,etc. ■ 10. All bolts,nuts, screws,etc. are tight 11. All joints are secure (pay special attention to sectional slides, ■ pipe climbers,and challenge ladders 12. Swivels,bearings,and grease fittings are lubricated and not worn (pay special attention to tire swings,belt swings,etc. 14. No sharp edges or unsafe protrusions (check metal corners, bolts,etc.—max. thread protrusion is 1/8" 15. No ex osed components creating inch or crush j2oints ATTENTIONB. PLAY EVENTS NE S COMPLETED ■ 1. Plastic is not cut or cracked 2. All slide supports/anchors are intact and secure ■ 3. All "S" hooks are closed and not excessively worn COMPLETEDSURROUNDING ARE NEEDS ATTENTTON ■ 1. Surface material is not scattered off or excessively worn (pay ■ special attention to areas at the end of slides and under swings) 2. Surface material is at least 12" dee ■ 3. A clear use area of at least 72"is kept around all a ui ment ■ page 18 Alliant Insurance Services, Inc. • 720 Olive Way• Suite 1700 • Seattle, WA 98101 PHONE (206) 204-9140 • FAX (206)204-9205 •www.alliant.com ■ r �Awant ► Warning Signage for Accessible Ponds and Lakes A pond or lake is defined as a body of water that is more than 12 inches deep and at least 10 feet across at its widest points. A pond or lake is accessible when it does not have a continuous surrounding barrier within 50 feet of its shoreline (that is higher than four feet with no openings wider than 2 feet). Although accessible ponds and lakes can be attractive spots for activities such as boating, fishing, and swimming, they present a variety of hazards. To minimize the hazards associated with ponds and lakes, well- maintained warning signage should be posted. Placement Place warning signs on all sides of the pond and at any openings leading to the pond. Since sign placement will vary according to the pond's layout and terrain, it may be acceptable to separate warning signs up to 100-500 feet from each other, as long as each opening to the lake or pond has a visible warning sign. Warning signs may be posted either in the pond or on the shore. Ensure that warning signs are visible from the shore of the pond and that are no obstructions (e.g. trees, bushes) blocking any part of them. For ponds located on golf courses, warning signs may be posted at the main entrance to the golf course Iinstead of at each pond therein. Construction Warning signs, including their graphics, must be made of a weather-resistant material such as metal, pressure-treated wood, plastic, or other approved material. Warning signs may use universal symbols for prohibited activities. LWarning signs must be securely fastened to the ground. Suggested warning messages: • WARNING Lff • No swimming or boating L, • Pond or Lake not monitored for hazardous conditions Size Warning signs must be at least 12 inches high and 18 inches wide I ' Lettering on warning signs must be at least 1.5 inches high with any graphics visible by a person with normal vision from 50 feet away. Maintenance Warning signs must be regularly maintained to ensure that they are still visible and in good condition. The Lff person who owns or controls land that includes an accessible pond or lake is responsible for this maintenance. 71is Alliant Loss Control Services fact sheet is not intended to be exhaustive.The discussion and best practices suggested herein should not be regarded as legal advice.Readers should pursue legal counsel or contact their insurance providers to gain more detailed and exhaustive advice. page 19 Alliant Insurance Services, Inc. • 720 Olive Way• Suite 1700 • Seattle, WA 98101 PHONE(206)204-9140 9 FAX(206)204-9205•www.alliant.com