Report to Carson Reclamation Authority
Thursday, December 28, 2023
Discussion
SUBJECT:
Title
CONSIDER AUTHORIZING EXECUTIVE DIRECTOR TO APPROVE AND BIND COVERAGE ON A POLLUTION LEGAL LIABILITY ("PLL") BRIDGE POLICY WITH A LIMIT OF $50,000,000, ADDING AN ADDITIONAL SIX YEARS TO THE EXISTING POLICY, FROM BEAZLEY ECLIPSE (LLOYDS SYNDICATES 623 AND 2623) PROCURED THROUGH MARSH USA, INC. IN AN AGGREGATE PREMIUM AMOUNT NOT TO EXCEED $2,000,000, PLUS APPLICABLE SURPLUS LINES TAXES AND BROKERAGE FEES
Body
I. SUMMARY
Pollution Legal Liability ("PLL") is site specific pollution coverage (typically defined as discharge, dispersal, release, escape, migration, emanation of a pollutant or waste from or through an insured location) for third party bodily injury and property damage claims and first party claims for cleanup costs. In 2017, the CRA obtained a PLL program for the Site with $200,000,000 limits of liability per incident and in the aggregate, a Self-Insured Retention (the SIR, or deductible) of $250,000 per incident and a term of 10 years from December 31, 2017 to December 31, 2027 (the "Existing PLL Program"). The Existing PLL Program includes coverage for pre-existing and new pollution conditions.
The Existing PLL Program lists the CRA, the City of Carson, RES, Macerich (CAM-Carson, LLC) and future developer partners of CRA as insureds with the unrestricted ability to make a claim under the Existing PLL Program. It does not extend coverage to contractors or subcontractors working on the Project. CAM has a dedicated sublimit of $50,000,000 and any future developer partners of CRA, such as Carson Goose Owner, LLC ("CGO"), will have dedicated sublimits in amounts to be determined and negotiated under their respective Insurance Administration Agreements. The Existing PLL Program is primary and non-contributory to any other insurance carried by CAM, or any other future developers.
For financing purposes, CGO will require 10 years of PLL coverage from when it ...
Click here for full text