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September 10, 2019 - Regular Meeting Agenda Item #17
Subject Purchase of Aircraft Liability Insurance for the Manatee County Board of County of Commissioners' owned unmanned aircraft (drone) program. Briefings Briefing Provided Upon Request Contact and/or Presenter Information
Mitchell O. Palmer, County Attorney, ext.3750
Linda R. Klasing, Risk Manager, ext.3750
Action Requested Motion to approve the purchase of liability insurance for the Manatee County Board of County of Commissioners' owned unmanned aircraft (drone) program in an amount not to exceed $8,139 as shown in the attached proposal from First Florida Insurance Brokers, and to approve the County Attorney, or his designee, to execute all related required documents. Enabling/Regulating Authority Ordinance 16-26 Background Discussion
The Manatee County Board of County Commissioners previously approved and put into place an unmanned aircraft (drone) program, including a drone policy which includes the requirement of aircraft liability insurance to protect against liability that arises from the use of unmanned (drone) aircraft. This is a new coverage that the County is purchasing to provide insurance for liability and hull craft for the Board of County Commissioners' owned drones and liability for personally owned drones used for County business.
This policy is being handled by the Risk Management Division via the County’s insurance broker, First Florida Insurance Brokers. This insurance policy is being purchased through Westchester Fire Insurance Company and covers unmanned aircraft when being used in the United States (excluding Alaska), Canada, and Mexico, or while the aircraft is dismantled and being transported between destinations.
The total premium for this policy is $8,139 (inclusive of all taxes and fees), for liability coverage of $1 million per occurrence per drone and hull coverage that varies per drone. The Risk Management Division of the County Attorney’s Office recommends purchasing this aircraft liability policy in the amount of $8,139 (inclusive of all taxes and fees). Further, the County Attorney requests authorization for him, or his designee, to execute all related documents.
Manatee County Government Administrative CenterHonorable Patricia M. Glass Chambers, First Floor
9:00 a.m. - September 10, 2019
County Attorney Review Other (Requires explanation in field below) Explanation of Other This is a County Attorney item. Reviewing Attorney Palmer Instructions to Board Records Please return a stamped copy of this Agenda Memorandum certifying its approval by the Board of County Commissioners to Linda R. Klasing at [email protected]. Thank you. Cost and Funds Source Account Number and Name $8,139.00 Fund 5050001500 Risk Management General Liability Fund Amount and Frequency of Recurring Costs One-time payment of $8,139.00 Attachment: MCBOCC Aircraft Liability Proposal 2019-2020.pdf
Manatee County Government Administrative CenterHonorable Patricia M. Glass Chambers, First Floor
9:00 a.m. - September 10, 2019
https://mewe.com/faq
Primary Contact:
Maggie Boykin, ARM-P Vice President, Property & Casualty
Prepared By:
Sharon Cardoso, AAI, ACSR, CISR, CPIA Senior Account Manager
100 SOUTH ASHLEY DRIVE, SUITE 250 TAMPA, FL 33602
813-902-3502 – PHONE
813-223-3932 – FAX
[email protected] – EMAIL [email protected] – EMAIL
DATE: MAY 21, 2019
WWW.FFINSBR.COM
MANATEE BOARD OF COUNTY COMMISSIONERS
AIRCRAFT LIABILITY
RENEWAL INSURANCE PROPOSAL
TERM: ANNUAL – TBD
Creating Unique Risk Solutions
Table of Contents
MANATEE COUNTY BOARD OF COUNTY COMMISSIONERS AIRCRAFT LIABILITY
TERM: ANNUAL – TBD
Creating Unique Risk Solutions
TAB SUBJECT PAGE NUMBER
1 Named Insured 1
2 Schedule of Insured Aircraft 2
3 Aircraft Liability Proposal 3
4 Market Response 4
5 Authorization to Bind 5
6 Sample Policy Form - Westchester Fire Insurance Company
6
7 Renewal Rate Summary N/A
TABLE OF CONTENTS
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Creating Unique Risk Solutions
MANATEE COUNTY BOARD OF COUNTY COMMISSIONERS AIRCRAFT LIABILITY
TERM: ANNUAL - TBD
Manatee County Board of County Commissioners
1112 Manatee Avenue West Bradenton, FL 34205
NAMED INSURED AND MAILING ADDRESS
NAMED INSURED
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Creating Unique Risk Solutions
MANATEE COUNTY BOARD OF COUNTY COMMISSIONERS AIRCRAFT LIABILITY
TERM: ANNUAL - TBD
SUMMARY OF VALUES SCHEDULE OF INSURED AIRCRAFT
Drone # F.A.A. Number Year Make and Model Aircraft Type
1 FA3P4XWWCC 2018 DJI Mavic Pro Quad Rotor
2 FA3P4XYPF3 2018 DJI Mavic Pro Quad Rotor
3 FA3P4Y4LKR 2018 DJI Phantom 4 Pro Quad Rotor
4 FA3P4Y9FMH 2018 DJI Phantom 4 Pro Quad Rotor
5 FA3P4YCAP9 2018 Yuneec H520 (32
Cameras) Camera
6 FA3FL3M774 2018 DJI Phantom 4 Pro Quad Rotor
7 FA3HMLCWKM 2018 DJI Mavic Pro Quad Rotor
8 FA3LWWTREY 2018 DJI Mavic Pro Quad Rotor
SIGNED SCHEDULE OF INSURED AIRCRAFT DUE PRIOR TO BINDING
Approved and Accepted By
Manatee County Board of County Commissioners
Signature – Date Signed
SCHEDULE OF INSURED AIRCRAFT
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Creating Unique Risk Solutions
MANATEE COUNTY BOARD OF COUNTY COMMISSIONERS AIRCRAFT LIABILITY
TERM: ANNUAL - TBD
NAMED INSURED Manatee County Board of County Commissioners
POLICY PERIOD Annual - TBD
CARRIER [BEST RATING]
Westchester Fire Insurance Company A++ XV | Admitted
TERRITORY While the aircraft is in the United States of America (excluding Alaska), Canada or Mexico, or while the aircraft is dismantled and is being transported between ports in the territory.
PILOT Any operator approved by the Named Insured
PURPOSE OF USE All uses required by the Named Insured
POLICY FORM AC 101 (07-07) & AC 102 (11-98)
AIRCRAFT LIABILITY Single Limit Bodily Injury (excluding passengers) and property damage
HULL COVERAGE In motion and not in motion coverage.
AIRCRAFT LIABILITY
DRONE Each Occurrence Limit Deductible
1 $1,000,000 $0
2 $1,000,000 $0
3 $1,000,000 $0
4 $1,000,000 $0
5 $1,000,000 $0
7 $1,000,000 $0
8 $1,000,000 $0
HULL COVERAGE
DRONE Each Occurrence Limit In Motion/Not in Motion Deductible
1 $1,300 $130
2 $1,300 $130
3 $1,400 $140
4 $1,400 $140
5 $5,000 $500
6 $1,799 $180
7 $900 $90
8 $900 $90
AIRCRAFT LIABILITY PROPOSAL
THIS DOCUMENT PROVIDES AN OUTLINE OF PROPOSED INSURANCE COVERAGE AND IS NOT ALL ENCOMPASSING, BEING LIMITED TO PROGRAM HIGHLIGHTS ONLY. RESPECTIVE CARRIER POLICY FORM IS ENCLOSED FOR YOUR REVIEW AND FULL UNDERSTANDING OF ALL PROGRAM TERMS, CONDITIONS, DEDUCTIBLES, SUBLIMITS AND EXCLUSIONS.
Aircraft Liability
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Creating Unique Risk Solutions
MANATEE COUNTY BOARD OF COUNTY COMMISSIONERS AIRCRAFT LIABILITY
TERM: ANNUAL - TBD
TERMS & CONDITIONS [NOT LIMITED TO…]
➢ AC-109 (11-98) NON OWNED AIRCRAFT LIABILITY ENDORSEMENT
➢ 30 DAYS NOTICE OF CANCELLATION, NON-RENEWAL OR REDUCTION IN COVERAGE BY INSURER, BUT 10 DAYS NOTICE FOR NON-PAYMENT OF PREMIUM.
➢ AC 103 (11-98) PILOTS WHO MAY FLY THE AIRCRAFT
➢ AC 110 (11-98) WAR, HI-JACKING AND OTHER PERILS EXCLUSION CLAUSE (AVIATION)
➢ AC 112 (02-08) EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)
➢ AC 159 (11-98) NUCLEAR RISK EXCLUSION CLAUSE
➢ AC 160 (11/98) AIRCRAFT ADDITIONAL EQUIPMENT (CGOET THERMAL IMAGER; AMOUNT OF INSURANCE: $1,799; DEDUCTIBLE: $180)
➢ AC 160 (11/98) AIRCRAFT ADDITIONAL EQUIPMENT (E90 4K 1’ CMOS; AMOUNT OF INSURANCE: $1,299; DEDUCTIBLE: $130)
➢ AC 161 (11-98) DATE RECOGNITION EXCLUSION ENDORSEMENT
➢ AC 162 (11-98) DATE RECOGNITION LIMITED COVERAGE ENDORSEMENT
➢ AC 165 (01-15) AMENDMENT TO INCLUDE COVERAGE FOR CERTIFIED ACTS OF TERRORISM; CAP ON LOSSES FROM CERTIFIED ACTS OF TERRORISM
➢ AC 167 (02-08) WAR, PHYSICAL DAMAGE COVERAGE ENDORSEMENT ADDITIONAL PREMIUM: AS QUOTED
➢ AC 168 (11-03) POLLUTION ENDORSEMENT
➢ AC 170 (01-15) LIMITED TERRORISM COVERAGE ENDORSEMENT
➢ AC 171 (02-05) PERSONAL INJURY EXTENSION ENDORSEMENT
➢ AC 176 (02-05) KNOWLEDGE, CONSENT AND UNINTENTIONAL FAILURE TO REPORT ENDORSEMENT
➢ ALL-21101 (11-06) TRADE OR ECONOMIC SANCTIONS ENDORSEMENT
➢ AC FL (02-99) FLORIDA CHANGES – CANCELLATION AND NONRENEWAL
ANNUAL PREMIUM
AIRCRAFT LIABILITY PREMIUM $6,000.00
HULL COVERAGE PREMIUM $1,260.00
ADDITIONAL COVERAGES (THERMAL IMAGER AND E90 CAMERA) $279.00
NON-OWNED AIRCRAFT LIABILITY ENDORSEMENT AC 109 (11-98) $600.00
TOTAL PREMIUM $8,139.00
WAR/TRIA PREMIUMS
WAR PREMIUM $670
TRIA PREMIUM $670
WAR/TRIA COMBINED $915
THIS DOCUMENT PROVIDES AN OUTLINE OF PROPOSED INSURANCE COVERAGE AND IS NOT ALL ENCOMPASSING, BEING LIMITED TO PROGRAM HIGHLIGHTS ONLY. RESPECTIVE CARRIER POLICY FORM IS ENCLOSED FOR YOUR REVIEW AND FULL UNDERSTANDING OF ALL PROGRAM TERMS, CONDITIONS, DEDUCTIBLES, SUBLIMITS AND EXCLUSIONS.
Aircraft Liability
AIRCRAFT LIABILITY PROPOSAL
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Creating Unique Risk Solutions
MANATEE COUNTY BOARD OF COUNTY COMMISSIONERS AIRCRAFT LIABILITY
TERM: ANNUAL - TBD
A++ to A+ A to A- B++ to B+ B to B- C++ to C+ C to C-
Superior Excellent Very Good Good Fair Marginal
(In $000 of Reported Policyholders’ Surplus Plus Conditional Reserve Funds)
FSC I Up to 1,000
FSC IX 250,000 to 500,000
FSCII 1,000 to 2,000 FSC X 500,000 to 750,000
FSC III 2,000 to 5,000 FSC X 750,000 to 1,000,000
FSC IV 5,000 to 10,000 FSC XI 1,000,000 to 1,250,000
FSC V 10,000 to 25,000 FSC XII 1,250,000 to 1,500,000
FSC VI 25,000 to 50,000 FSC XIII 1,500,000 to 2,000,000
FSC VII 50,000 to 100,000 FSC XV 2,000,000 to more
FSC VIII 100,000 to 250,000
Best’s Insurance Reports, published annually by A.M. Best Company, Inc., presents comprehensive reports on the financial position, history, and transactions of insurance companies operating in the United States and Canada. Companies licensed to do business in the United States are assigned a Best’s Rating which attempts to measure the comparative position of the company or association against industry averages. First Florida Insurance Brokers used A.M. Best & Co.’s rating services to evaluate the financial condition of insurers whose policies we propose to deliver. The rating of the carrier and the year of publication of that rating are indicated. First Florida Insurance Brokers makes no representations and warranties concerning the solvency of any carrier, nor does it make any representation or warranty concerning the rating of the carrier which may change. Copies of the Best’s Insurance Reports on the insurance companies are available upon your request.
Westchester Fire Insurance Company
A++ XV 12/13/18 No Quoted See Proposal Page 3
A.M. Best Financial Strength Guide
MARKET RESPONSE
CARRIER
A.M. BEST RATING
RESPONSE SURPLUS
LINES
ACTION
RESPONSE
A.M. BEST
as of
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Creating Unique Risk Solutions
MANATEE COUNTY BOARD OF COUNTY COMMISSIONERS AIRCRAFT LIABILITY
TERM: ANNUAL - TBD
The proposal is an outline of the coverages proposed by the insurers, based on the information provided by your company. It does not include all the terms, coverages, exclusions, limitations, or conditions of the actual contract language. The policies themselves must be read for those details. Policy forms are included in this proposal for your review. The information contained in this proposal is based on the historical loss experience and exposures provided to First Florida Insurance Brokers. This proposal is not an actuarial study. Should you wish to have this proposal reviewed by an independent actuary, we will be pleased to provide you with a listing of actuaries for your use.
In general, First Florida Insurance Brokers may be compensated as follows:
1. First Florida Insurance Brokers is compensated from the usual and customary commissions or fees received from the brokerage and servicing of policies handled for a client’s account. As permitted by law, we occasionally receive both commissions and fees, with client authorization.
2. First Florida Insurance Brokers may access other facilities, including wholesalers, reinsurance
intermediaries, captive managers, underwriting managers and others that act as intermediaries for both First Florida and other brokers in the insurance marketplace.
3. In placing, renewing, consulting on or servicing any retail insurance policy, First Florida
Insurance Brokers has not participated in Property and Casualty contingent commission agreements with insurance companies that provide for additional compensation if underwriting, profitability, volume and retention goals are achieved.
4. First Florida Insurance Brokers strongly supports compensation transparency with annual
disclosures to clients.
If coverage is placed with a Non-Admitted Carrier, the carrier is doing business in the state as a surplus lines or non-admitted carrier. Surplus Lines and/or non-admitted carriers are not subject to the same regulations which apply to an admitted carrier nor do they participate in the Florida state insurance guarantee fund.
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IMPORTANT DISCLOSURES
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Creating Unique Risk Solutions
MANATEE COUNTY BOARD OF COUNTY COMMISSIONERS AIRCRAFT LIABILITY
TERM: ANNUAL - TBD After careful consideration of the Aircraft Liability proposal dated May 21, 2019, we accept your
insurance program per indicated option below:
Bind above selected as presented in FFIB proposal dated May 21, 2019 Bind above selected with the following exception(s)
Client Exceptions:
It is understood and agreed that referenced proposal provides only a summary of the insurance program options offered. The actual policies will contain the complete terms, conditions, deductibles, exclusions, etcetera. Please review policy language for a full understanding of purchased program. Please provide the County with respective binders and invoices for above selected program at your earliest convenience prior to the effective date; as well as, term certificate(s) of insurance, as applicable.
Linda Klasing Maggie Boykin, ARM-P Risk Manager Vice President – Property & Casualty Manatee County BOCC First Florida Insurance Brokers Dated Dated
Aircraft Liability & Hull Coverage
• Aircraft Liability Coverage
• Hull Coverage
• Additional Coverages (Thermal Imager and E90 Camera)
• Non-owned Aircraft Liability Endorsement Westchester Fire Insurance Company $8,139.00 [inclusive of all fees]
War Premium Westchester Fire Insurance Company $670.00 [inclusive of all fees]
TRIA Premium Westchester Fire Insurance Company $670.00 [inclusive of all fees]
War/TRIA Premium Westchester Fire Insurance Company $915.00 [inclusive of all fees]
AUTHORIZATION TO BIND
COUNTY SELECTION