Report to Carson Reclamation Authority
Monday, June 05, 2023
Consent
SUBJECT:
Title
AUTHORIZE EXECUTIVE DIRECTOR TO APPROVE AND BIND COVERAGE ON A PUBLIC ENTITY LIABILITY POLICY FROM CHUBB COMPANIES USA, WRITTEN BY ACE AMERICAN INSURANCE COMPANY, PROCURED THROUGH MARSH USA, INC. IN AN AGGREGATE LIMIT OF NO MORE $10,000,000 AND A PREMIUM AMOUNT NOT TO EXCEED $180,490.00
Body
I. SUMMARY
This action authorizes the Executive Director to approve and bind a renewal of a Public Entity Liability Policy on behalf of the Carson Reclamation Authority offered by Chubb Companies USA, underwritten by ACE American Insurance Company. As in previous years, the CRA's broker Marsh recommends placing such a policy instead of a standard Directors and Officers Liability (D&O) policy to ensure that the public officials are adequately covered for their D&O exposure - personal liability as well as Errors and Omissions exposure (E&O) and Employment Practices Liability (EPL) exposure.
This policy is a much broader D&O type coverage and tailored to CRA in its capacity as a quasi-governmental agency making development decisions on environmentally contaminated property and includes both E&O and EPL in one policy form.
This year's premium of $180,490.00 reflects smallest increase (about 0.1%) in the past 4 or 5 years. Over the past few years, due to ongoing significant changes in the public officials' liability market and the D&O markets overall, the CRA saw significant increases in quoted premium for the same coverage, from slightly less than $80,000 in 2020 to $130,040 in 2021 to $180,351.00 last year, while maintaining the Self-Insured Retention (SIR) at $250,000. SIR is similar to deductibles in personal insurance. Part of the increase was also attributed to the claim activity by the CRA on the current policy due to the ongoing CAM-Carson, LLC litigation, which also reduced the number of other companies willing to provide quotes on the policy.
One option once again would be to ...
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