| Resolutions - Risk Management: Consider four resolutions authorizing and directing the City Manager to purchase, for and on behalf of the City of Lubbock, inland marine insurance coverage from Travelers Lloyd’s Insurance Company, for which the premium amount shall not exceed $17,584; pipeline liability insurance coverage from Federal Insurance Company, for which the premium amount shall not exceed $5,150; crime insurance coverage from Travelers Casualty & Surety Company of America, for which the premium amount shall not exceed $7,577; and drones hull and liability coverage from Global Aerospace, Inc., for which the premium shall not exceed $4,552. |
Inland marine coverage insures direct physical loss for special classes such as fine arts, sound and broadcasting equipment, and radio towers at stated values.
The City's current inland marine insurance includes coverage for Broadcasting and Media equipment, Instruments of Communication, and Fine Arts with a deductible of $2,500 and a policy premium of $16,658. The renewal quote of $17,584 reflects an 5.56% increase in premium from FY 2020-21.
Pipeline liability coverage protects the City in case of an explosion of the City's gas pipeline.
The City's current pipeline liability insurance coverage is provided by Federal Insurance Company, Chubb Group with a premium of $5,150 for $2,000,000 in coverage with a $2,500 deductible. This premium and coverage remains unchanged for the FY 2021-22 policy period.
Crime coverage insures the loss of monies and securities from employee dishonesty, forgery or alteration, theft, disappearance, destruction, computer fraud, and funds transfer fraud.
The City’s current crime insurance coverage offers $2,000,000 million in coverage, including $100,000 of Social Engineering Fraud coverage, which protects against online scams used by criminals to trick, deceive, and manipulate their victims into giving out confidential information and funds, with a $50,000 deductible. The proposal is to renew the City’s current coverage at a premium of $7,577, a 8.74% increase over FY 2020-21.
Drone liability insurance covers liability claims that the City is legally obligated to pay, for bodily injury and property damage caused by commercial unmanned aerial vehicles (UAV) operation. Drone hull coverage covers the costs of physical damage to the UAV.
The quoted insurance policy has $1,000,000 million in coverage for drone liability insurance and ranges from $400 to $5,500 in hull coverage for unmanned aerial vehicles (UAV). The policy includes no deductible for the liability coverage and a 5% deductible for hull coverage.
Carriers bind insurance coverage October 1, 2021, after notification of City Council approval. Insurance policies are issued once the insurance company receives from the City the premium for the insurance coverage and are approved by the Texas Department of Insurance as to content. Current insurance policies are available in Risk Management. |
