|Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - February 11, 2014|
Agenda Item #12
Boiler & Machinery, Crime, and CSX-General Liability Insurance
Contact and/or Presenter Information
Raymond Carter, Risk Manager
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.
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.
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
Instructions to Board Records
Please return a copy of the approved agenda item to the Risk Management Division-Raymond Carter, Risk Manager (email@example.com).
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