Commercial General Liability Insurance New Jersey - PDF

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					SUMMARY STATEMENT

ITEM NO.                     SUBJECT:         Renewal of DRPA Commercial
                                              General Liability Policy

COMMITTEE:                                    Executive

COMMITTEE MEETING DATE:                       May 19, 2010

BOARD ACTION DATE:                           June 09, 2010


PROPOSAL:     That the Board authorize the renewal of the DRPA Commercial General
              Liability insurance policy placed through our brokers at Willis of New
              Jersey, Inc., for a one year term from August 1, 2010 through July 31,
              2011.

              The DRPA’s existing Commercial General Liability policy will
              expire August 1, 2010.

              Willis of New Jersey, Inc. aggressively marketed this coverage for the
              2010-2011 policy period to several insurance companies in order to
              secure the most competitive pricing available to the Authority. Our
              broker has recommended that we refrain from marketing the coverage
              on an annual basis. A summary of the Willis marketing efforts is as
              follows:
              Lexington       -        $84,450
              Travelers        -       Declined to quote due to marine risk

              No carriers could match the terms and conditions offered by our current
              incumbent, Lexington. The incumbent, Lexington, a wholly-owned
              AIG company, currently has an AM Best Rating of A (Excellent).
              Lexington has agreed to maintain the policy endorsement that would
              provide in the event Lexington’s financial rating drops to a B rating, a
              pro-rata return on our premium.

PURPOSE:      To reduce the DRPA’s exposure to risk by insuring against third-party
              bodily injury and property damage claims that occur at One Port
              Center, Cruise Terminal lots, and other designated lots and blocks.

BACKGROUND:   The Commercial General Liability policy insures the DRPA against
              losses by reason of liability imposed by law or assumed under contract by
              claims involving Bodily Injury, Personal Injury, Property Damage or
              Advertising Injury.

              The DRPA’s existing Commercial General Liability policy will
              expire August 1, 2010.
SUMMARY STATEMENT - 2 -                       Renewal of DRPA Commercial
Executive 6/09/2010                                  General Liability Policy
__________________________________________________________________________

                  Willis of New Jersey, Inc. aggressively marketed this coverage for the
                  2010-2011 policy period to several insurance companies in order to
                  secure the most competitive pricing available to the Authority. Our
                  broker has recommended that we refrain from marketing the coverage
                  on an annual basis. A summary of the Willis marketing efforts is as
                  follows:
                  Lexington       -        $84,450
                  Travelers        -       Declined to quote due to marine risk

                  No carriers could match the terms and conditions offered by our current
                  incumbent, Lexington. The incumbent, Lexington, a wholly-owned
                  AIG company, currently has an AM Best Rating of A (Excellent).
                  Lexington has agreed to maintain the policy endorsement that would
                  provide in the event Lexington’s financial rating drops to a B rating, a
                  pro-rata return on our premium.
                  The expiring premium for this policy was $82,018 and provides an “Each

                  Occurrence” Limit of $1 million per occurrence (general aggregate $5
                  million) subject to a $25,000 deductible. This year, the premium
                  will be $84,450, which is a 2.97% increase ($2,432). This
                  premium includes coverage for minor construction projects
                  performed in-house valued up to $10,000,

SUMMARY:          Amount:                 $84,450
                  Source of Funds:        Revenue and General Funds
                  Capital Project #:      N/A
                  Operating Budget:       DRPA Risk Mgt. C/E #8 – TBD
                                          (DRPA/OPC)
                  Master Plan Status:     N/A
                  Other Fund Sources:     N/A
                  Duration of Contract:   August 1, 2010 – July 31, 2011
                  Other Parties Involved: Willis of New Jersey
                                                                     DRPA-10-031
                                                Executive Committee: May 19, 2011
                                                          Board Date: June 09 2010
                                             Renewal of DRPA Commercial General
                                                                   Liability Policy


                                 RESOLUTION

RESOLVED:   That the Board of Commissioners approves and authorizes the placement of
            the DRPA’s General Liability Insurance Policy with Lexington Insurance
            Company, for a one year term beginning August 1, 2010 through July
            31, 2011. The limit of this renewal policy is $1 million per occurrence
            (general aggregate $5 million), subject to a $25,000 deductible. The
            premium for this policy is $84,450; and be it further

RESOLVED:   That the Chairman, Vice Chairman and the Chief Executive Officer must
            approve and are hereby authorized to approve and execute all necessary
            agreements, contracts, or other documents on behalf of the DRPA. If
            such agreements, contracts, or other documents have been approved by the
            Chairman, Vice Chairman and Chief Executive Officer and if thereafter
            either the Chairman or Vice Chairman is absent or unavailable, the
            remaining Officer may execute the said document(s) on behalf of DRPA along
            with the Chief Executive Officer. If both the Chairman and Vice Chairman are
            absent or unavailable, and if it is necessary to execute the said document(s)
            while they are absent or unavailable, then the Chief Executive Officer shall
            execute such documents on behalf of DRPA.

SUMMARY:    Amount:                 $84,450
            Source of Funds:       Revenue and General Funds
            Capital Project #:      N/A
            Operating Budget:      DRPA Risk Mgt. C/E #8 -TBD
                                    (DRPA/OPC)
            Master Plan Status:     N/A
            Other Fund Sources:     N/A
            Duration of Contract: August 1, 2010-July 31, 2011
            Other Parties Involved: Willis of New Jersey

				
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