Laserfiche WebLink
Insurance Renewals <br />June 18, 2007 <br />Page 2 <br />The Public Entity Property Insurance Program (PEPIP) was established on <br />May 15, 1993 with seventeen public agencies that included the City of <br />Santa Ana. The purpose of PEPIP is to provide public agencies with group <br />purchasing strength in a challenging property insurance market. Since <br />1993, PEPIP has grown to include over 6, 000 members in 30 states, which <br />has allowed the group to purchase adequate property insurance at <br />affordable premiums. Renewal of the City's participation in PEPIP will <br />ensure the City's ability to continue purchasing property insurance at <br />competitive rates. The $356,017 premium will provide $1,000,000,000 of <br />coverage for insured City properties. PEPIP will provide the City with <br />$100,000,000 for boiler and machinery damage and $82,500,000 in flood <br />damage except $50,000,000 in Flood Zone A. All PEPIP members share <br />$600,000,000 of terrorism coverage on an annual aggregate basis with a <br />maximum of $200,000,000 for any one member. However, due to the excessive <br />premium cost of earthquake insurance, the City will not seek this <br />coverage. <br />Insurance deductibles will be as follows: <br />Coverage Deductible <br />Flood $100,000 except $250,000 for Flood <br /> Zone A locations <br />Vehicles <br />Fire Fighting $50,000 <br />Vehicles <br />All other $25,000 <br />All other occurrences $10,000 <br />Boiler & Machinery $2,500 to $350,000, depending on the <br /> pieces of equipment involved <br />Environmental insurance covers pollution risks which are excluded in <br />liability policies and provides coverage for property losses at scheduled <br />City locations. The coverage includes the following: (1) City streets, <br />roads, storm drains and sewer lines (2) pesticide and herbicide spraying <br />(3) emergency response activities (4) transportation of City wastes by <br />vendors (5) City storage tanks above and below the ground (6) clean up <br />costs. The insurance is "Claims Made" instead of "Occurrence" coverage <br />which means a loss needs to happen during the policy period and a claim(s) <br />needs to be filed in the policy period for coverage to apply. The limit <br />is $10,000,000 with a $500,000 deductible and is a joint purchase program <br />through the California State Association of Counties - Excess Insurance <br />Authority (CSAC-EIA) There are 47 members in the program and there is a <br />$50,000,000 program aggregate. The City would be entering for the last two <br />years of the three year program. <br />29A-2 <br />