|Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - February 12, 2013|
Agenda Item #14
Insurance Renewals: CSX Liability, Crime, Boiler & Machinery
Contact and/or Presenter Information
Raymond Carter, Risk Manager, ext. 3782
Motion to approve the purchase of Boiler & Machinery coverage for $53,689.00, Crime Coverage $3,247.68, and CSX – General Liability coverage for $13,710.96, for a total cost of $70,647.64, and allow the County Attorney or his designee to execute all related documents.
Boiler & Machinery
Manatee County purchases a Boiler and Machinery insurance policy to protect the County from losses due to a mechanical failure to equipment such as air conditioning systems, damage to large electrical motors and other systems that may fail due a to mechanical problem. The coverage has a total loss limit of $50,000,000.00 and a deductible of $5,000.00 per occurrence except for losses to air conditioning and refrigeration units. A minimum deductible of $10,000 would apply to these types of losses. All terms, conditions, etc. remain the same per the expiring policy with the carrier C.N.A. for a total annual premium of $53,689.00 with an effective renewal date of March 1, 2013. This represents an increase in premium from expiring of $4,262. This premium increase is due to a Boiler & Machinery loss that took place on March 30, 2012, from a valve that failed in a system resulting in water damage to the building and computer equipment located at 4751 66th Street West. The total recovery for this claim from the carrier was $37,033.55.
The County also purchases a Crime Policy for coverage against acts of employee dishonesty for theft of money or securities. For the 2013 Crime renewal we are recommending increasing the limits from $100,000 to $500,000. To obtain this increased coverage, the premium will increase by $1,414 above last year’s renewal. Due to the large amount of monies and securities handled throughout County Operations, Risk Management is recommending increasing this coverage. The annual premium for the Crime renewal at the increased limits is $3,247.68 with a renewal date of March 1, 2013. The deductible remains the same at $25,000 per occurrence.
CSX – General Liability
The County also purchases a CSX-General Liability insurance policy to maintain a contractual requirement with CSX Railroad. There are two different projects that are covered under this policy: (1) fiber optics that were installed underneath 8 railroad crossings and (2) storm water drain pipes installed at 2 railroad crossings. The annual premium for this policy is $13,710.96 with a renewal date of March 3, 2013. The deductible for this policy remains per expiring at $5,000.
The County Attorney recommends purchasing the Boiler & Machinery coverage from C.N.A. in the amount of $53,689.00, the Crime coverage in the amount of $3,247.68, and the CSX-General Liability coverage in the amount of $13,710.96, for a total of $70,647.64. The County Attorney also requests authorization to allow him or his designee to execute all related documents.
County Attorney Review
Not Reviewed (No apparent legal issues)
Explanation of Other
Instructions to Board Records
Please return a copy of the approved agenda to Risk Management (firstname.lastname@example.org).
Cost and Funds Source Account Number and Name
$70,647.64 Fund 505 Key 5050001500 Object 545000
Amount and Frequency of Recurring Costs
$70,647.64 One Time Payment
Attachment: MCBOCC Agenda Item B&M, Crime Option 2 $500k and CSX-GL.pdf