Report to Carson Reclamation Authority
Monday, December 05, 2022
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
With the Tokio Marine Contractors Pollution/Professional Liability ("CPL/PLI") program set to expire on December 21, 2022, the objective of this renewal program is to secure dedicated coverage for CRA 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 cannot be and the CRA does not wish to extend the policy under the current terms. The original policy cost more than $3,000,000, though 40% was paid for by CAM-Carson, LLC. This new program is designed to respond in excess of valid and collectible insurance afforded by the WSP program.
This bridge-period coverage is 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.
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 manuscript their program for the exacerbation coverage the CRA requested.
Limits of liability are quoted with $5,000,000 each incident and a $5,000,000 policy aggregate, in excess of a $50...
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