Report to Carson Reclamation Authority
Monday, December 04, 2023
Discussion
SUBJECT:
Title
CONSIDER A CONTRACTOR POLLUTION LIABILITY POLICY WITH ALLIANZ WITH A LIMIT OF $5,000,000 AT A PREMIUM NOT TO EXCEED $52,250 PLUS SURPLUS LINES TAXES AND STAMPING FEES PROCURED THROUGH MARSH USA, INC.; AND AUTHORIZE THE EXECUTIVE DIRECTOR TO BIND THE POLICY
Body
I. SUMMARY
When the Tokio Marine Contractors Pollution/Professional Liability ("CPL/PLI") program expired on December 21, 2022, the CRA obtained narrower but dedicated coverage for conditions that are created or exacerbated as a result of the O&M being performed by WSP (the O&M contractor) onsite. The 2016 Tokio Marine policy was unable to be extend and the CRA wouldn't have wanted to continue the policy under its then-current terms. The original policy cost more than $3,000,000, though 40% was paid for by CAM-Carson, LLC. This new program was designed to respond in excess of valid and collectible insurance afforded by WSP's CPL program.
This bridge-period coverage was structured for one year, with the intention that the developer(s) will take over this obligation and coverage when development work begins as they obtain CPL coverage as required under their Insurance Administration Agreements with the CRA. That year has passed and the CRA is still in the position of needing a bridge policy until at least Carson Goose Owner, LLC is ready to close on their insurance programs in Q1 2024.
The CPL program quoted complements the robust Pollution Legal Liability ("PLL") program tower lead by Beazley by providing affirmative coverage for the activities/operation of the systems and the exacerbation of existing conditions.
Marsh recommends selection of the quoted Allianz program (as shown in the proposal in Exhibit 1), as this option is afforded on an Occurrence form, eliminating the need for Extended Reporting Period ("ERP") coverage to be purchased upon expiration. Allianz also agreed to affirmatively manuscrip...
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