Laserfiche WebLink
Insurance Renewals <br />June 2, 2008 <br />Page 2 of 3 <br />purchase statutory excess Workers' Compensation insurance for claims that <br />exceed our self-insured retention of $500,000. The City Manager will <br />review the quotations and make the final decision to secure the coverage. <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. Since 1993, PEPIP has grown to include more than 6,400 <br />members in thirty-two states. The goal of PEPIP is to give public <br />agencies group purchasing power. Our continued participation in PEPIP <br />will ensure the City's ability to purchase property insurance at <br />competitive rates. We estimate that our property insurance premium will <br />be $400,000. This will provide $1,000,000,000 of coverage for insured <br />City properties. It will also provide the City with $100,000,000 for <br />boiler and machinery damage and $82,500,000 for flood damage. Properties <br />in Flood Zone A will have $50,000,000 of insurance coverage. All PEPIP <br />members share $600,000,000 of terrorism coverage on an annual aggregate <br />basis with a maximum of $200,000,000 for any one member. The City will <br />not seek earthquake coverage due to excessive premium cost. <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 except $5,000 for <br /> Redevelopment Properties <br />Boiler & Machinery $2,500 to $350,000, depending on <br /> the pieces of equipment involved <br />The City joined the California State Association of Counties - Excess <br />Insurance Authority (CSAC-EIA) Crime Bond Program on April 1, 2004. Our <br />current policy will end on July 1, 2008. The estimated premium to renew <br />the policy for the next three years is $40,000. The Crime Bond Program <br />provides $10,000,000 of coverage with a $25,000 deductible per <br />occurrence. This program provides coverage for the following situations: <br />1. Employee dishonesty <br />2. Faithful performance issues <br />3. Forgery and alteration <br />4. Theft, disappearance and destruction <br />5. Robbery and safe burglary <br />6. Computer fraud including funds transfer coverage <br />7. Money orders and counterfeit paper currency <br />29A-2 <br />