www.mymanatee.org
Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - February 11, 2014
REVISED February 11, 2014 - Regular Meeting
Agenda Item #12


Subject
Boiler & Machinery, Crime, and CSX-General Liability Insurance

Briefings
None

Contact and/or Presenter Information

Raymond Carter, Risk Manager



Action Requested

Motion to approve the purchase of insurance including:  Boiler & Machinery coverage for $54,706.43, Crime Coverage, $3,276.53, and CSX – General Liability coverage for $17,256.46 for a total cost of $75,239.42; and authorize the County Attorney, or his designee, to execute all related documents.



Enabling/Regulating Authority

Ordinance 08-49



Background Discussion

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 and a deductible of $5,000 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 for a total annual premium of $54,706.43 with an effective renewal date of March 1, 2014.  This represents an increase in premium from expiring of $1,017.43.  This premium increase is due in part to a Boiler & Machinery loss that took place on December 4, 2013.  A boiler failed at the County Jail, due to a crack in the internal core.  The County's total recovery for this claim, after a $5,000 deductible, was $13,320.

Crime

The County also purchases a Crime Policy for coverage against acts of employee dishonesty for theft of money or securities.  The board approved raising the coverage limit last year from $100,000 to $500,000 per occurrence. The 2014 renewal will be the second year of a three-year premium rate guarantee of $3,276.53 annually.       

CSX – General Liability

The County also purchases a CSX-General Liability insurance policy to maintain a contractual requirement with CSX Railroad for completed projects which traverse under CSX controlled railways.  There are two different types of 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 $17,256.46 with a renewal date of March 3, 2014.  The deductible for this policy remains per expiring at $5,000; however, the premium has an increase of $3,545.50 from expiring policy because the minimum premium requirements of the carrier were raised.



County Attorney Review
Not Reviewed (No apparent legal issues)

Explanation of Other


Reviewing Attorney
N/A

Instructions to Board Records

Please return a copy of the approved agenda item to the Risk Management Division-Raymond Carter, Risk Manager (raymond.carter@mymanatee.org).



Cost and Funds Source Account Number and Name
505-0001500-545000, Risk Management-General Liability

Amount and Frequency of Recurring Costs
$75,239.42; One-Time Payment


Attachment:  Manatee BM & Crime 3-14 to 3-15.pdf
Attachment:  Manatee CSX 3-14 to 3-15 Revised 01.27.14.pdf