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Home My WebLink About1996-06-10 96-252 ORDERCOUNCD.ACTION DateJune 17,19% Ilan No.96_252— Item/Subject: Airport Commercial Liability it smance. Responsible Department Purchasing/Airport Commentary: Over the last few years only one or two insurance companies have been able to provide the $100,000,000 commercial liability assurance coverage for Bangor lntemmional Avpmt. Each year Owen Cole of Sargent, Tyler & Wert has solicited prices for the insurance and we have used this information as the basis for pumbasing the coverage for the Airport. This arrangement has been wed as a continuation of the bid award made to Sargent, Tyler & West about six years ago. In addition to Owen's solicitation I have contacted various commercial insurance agencies to sot if they could locate other sources of this rather specialized insmence. Ova the years no other sources were identified by the mho agencies. When the makot for this coverage opens up we will formally bid the Ai@ort insurance. On June 3, 1996 the Firimace Committee reviewed the purchase of this insurance from AIG Aviation, inc. for $105,000 and referred this action to the City Council with a recommendation for approval. AQP � Manager's Commands: 7!2MJrI,IDV- City Manger Associated Information: memorandums and Sargent, Tyler & West quotation Budget Approval: Fiwnce D' ec�to� Legal Approval: City Solicitor haraduced For: k Passage ❑ Fimt Reading ❑ Referral 96-252 Aeugned to Camegm Soucy - Tuna 10, 1996 CITY OF BANGOR (TITLE.) Mrber, Aum,oriang theeur�hasy afAirport.Cnromacul Uabdgy mauraeaa Gom A[c Aviation Inc. .................. _........ BV the City Couneil of CitV OfBanyor. ORDERED, TEAT the Purchase ofConunercial Liability Insurance vith$100,000,000 in coverage for Bangor httemational Airport with a premium of $105,000 is haeby authonzed from AIG Aviation, Inc. for Fiscal Year IM. IN CITY COUNCIL 96-252 June 10, 1996 Passed 0 R 0 E R CITY CLEM Title, Authorizing the purchase of Airport Comercial Liability Insurance from AIG Avaintion Inc. ...................................... ............�.p./.�.,.Q�.j//./........... ..... .o wi/"^` Mig�nd'/W/ — ........ RA r::.F V Councilman 96-25L. To: Finance Committce OiA C From: Subleot: CbUfie NBtchdl, Claims Consultant General Uabithy Insurance Renewal- Bangor International Airport Date: May 16, 1996 1 For a number of years, the City has utilized the experience of Owen Cole to assist us in purchasing genual liability insumnaa for Bangor International Airport b OGAviadioml char been our insurer throughout this period. Our current premium is $97, Mr. Cole has solicited quotes for this insurance for the year beginning 7-1-96. For a number of yem,AlGhasbeentheoWy Bantoquotesuchcov ge. This year, a quote was also received from Associated Aviation Underwrites. 1'hetwo quotes are: AIG Aviation, Inc. $105,000 Associated Aviation Underwriters $135,000 Based on these quotations, vie would recommend renewing our coverage with AIGAv"mon. Attached you wiH find a summary of coverages. AIG offers a$50,000 deductibie. Asan alternate, they proposed a $75,000 deductible with a premium of $95,000 I would recommend we retain the $50,000 deducuble. Since the premium will exceed $100,000, the fun Council's approval is required CM! Attachment 96-252 Memorandum To: Fm once Common From: DmidN Pellegrino, Purchmerng Agent Date: 0513111996 Subject. Airport ConuoerctalLiabilityl rance While discussing the renewal of the A'irport's $100,000,000 Commercial Liability Insurance m the previous Finance Committee meeting, Councilor Popper asked about the amount of coverage and the carrier for the Portland Tmporfs insurance. Charlie sditchell contacted the risk manager for the City of Portland and was given the following information: L The Portland Jetport carries $25,00,000 of commercial general liability insurance. 2. The coverage is provided by Associmes Aviation Underwriters. The explanation given for the relatively small amount of coverage at the Portland Ietport was that rrmaimermenu and deicing services were contracted out. These services are provided by Bangor Ntemuional Ahwd and mnmiwte a major exposure forthe A'upom. In spite of the lower risk at Portland thew coverage is considered inadequate. Logan Airport carries $300,000,000 and this amount would not be considered too much for Bangor International Airport. The rationale for gas coverage is the Bangor International Airport regularly accommodates 747 aircraft that carry in excess of 300 passengers. The insurance industry estimates claim settlements at approximately, $1,000,000 par Passenger when adjusting disasters. The $100,000,000 coverage m Bangor is considered a logical compromise of the risks. Council Popper also sated about the need for $25,000,000 coverage for Host Liquor Liability. Owen Cole of 5argem, Tyler &Won explained that this item is"throwm in"or standard to the policy witlmm a di8'mamce inthe premium. Wourcoveragewerereducedto 1,000,000 the premium would not change since it is not considered an exposure. Mr. Cole will be at the meeting to answer try further questions that may arise concerning the City's Airport Commercial Liability Insurance coverage. May 9, 1996 Mr. Charlie Mitchell Risk Manager City Of Bangor 73 Harlow Street Bangor, ME 04401 mmla a: A. Commercial General Liability Coverage Premises & Operations $ 100,000,000 Per Occurrence Elevators Escalators independent Contractors Contractual Liability Incidental Medical Malpractice , Sign Misdirection $ 25,000,000 Personal Injury Liability $ 25,000,000 Aggregate Host Liquor Liability . $ 25,000,000 Aggregate Pzermscs Medical Payments $ 1,000 Each Person $ 10,000 Per Occurrence Cargo Legal Liability. $ 400,000 Fire Legal Liability S 100,000 SARGENT, TYLER & WEST P.O. Boz 492, ScarboroSgb, ME 04070-0492 r 96-252 Q Page -2- Baugor International Airport B. Products & Completed Operations $ 100,000,000 Aggregate Independent Contractors: Sale Of New Antcreft $ If Any Included Contractual Liability: Sale Of Used Aircraft - $ If Any Included Personal Injury Liability: Fuel Sales $ 5,194,000 Included Fire Legal Liability: Parts Not Installed $ If Any Included B. Products & Completed Operatrons: Parts Installed $ 26,000 Included Sale Of New Aircraft Service & Repair $ 202,000 Included Sale Of Used Aircraft - Cargo Hauling $ 150,000 Included C. Hangarkeepers Legal Liability $ 100,000,000 Each Aircraft Parts Not Installed Rate: $ 1OQ000,000 Each Occurrence D. Nan Ownership Liability $ 100,000,000- Per Occurrence Service & Repair Up To (20) Seats flat Rate Premium: Included a Fellow Employee Exclusion Is Deleted In The CGL Coverage I A. Premises & Opemdons: Rate: flat Rate Premium: Included Independent Contractors: Rate: Flat Rate Premium: Included Contractual Liability: Rate: Flat Rate Premium: Included Personal Injury Liability: Rate: Flat Rate Premium: Included Fire Legal Liability: Rate: Flat Rate Premium: Included B. Products & Completed Operatrons: Rate: Flat Rate Premium: Included Sale Of New Aircraft Rale: Flat Rate Premium: Included Sale Of Used Aircraft - Rate: Flat Rate Premium: Included Fuel Sales Rate: Flat Rate Premium: Included Parts Not Installed Rate: Flat Rate Premium: Included pis Installed Rate: Flat Rate Premium: Included Service & Repair Rate: flat Rate Premium: Included C. Hangarkeepers Legal Liability Rate: Flat Rate Premum: Included Page -3- Bangor lntemadonal Auport D. Non Ownership Liability: Rate: Flat Rate Premium: Included 11 ._a . . $ 50,ODO Bach & Every Occurrence $ 50,000 Deductible Aggregate $ 105,000 Total Annual Preuuum $ 75,000 Each & Every Occ=nce 75,000 Deductible Aggregate $ 95,000 Total Arcual Premium 96-252 C�