No preview available
HomeMy WebLinkAboutC21-160 AIG1                                            © 2021 Arthur J. Gallagher & Co. May 24, 2021 Eagle County, Colorado Attn: Abby Dallmann P.O. Box 850 500 Broadway Eagle, CO 81631 Re: Airport Liability Policy Effective: 6/1/2021 – 6/1/2022 Dear Abby: Thank you for the opportunity to evaluate your insurance program. Understanding the current state of the market, we have reviewed your program structure and coverage, identified the appropriate insurance partners, and considered your loss history to develop our proposal. We are recommending that we place your insurance program with National Union Fire Insurance Company of Pittsburgh, PA (AIG), achieving our goals of obtaining a competitively priced program that protects your risks and exposures. We are not aware of any changes in your exposures to loss, nor are we aware of any changes in your business operations that would necessitate additional coverage options. Please notify us immediately if you are planning any new business operations. We would like to outline the following notable points for your consideration: Any entity not named in this proposal, may not be an insured entity. This may include affiliates, subsidiaries, LLC’s, partnerships and joint ventures. The insurance carrier is National Union Fire Insurance Company of Pittsburgh, PA (AIG). The annual premium is per the below chart. You will receive an invoice from our office at time of binding. Premium AIG Starr Chubb  Old  Republic  Base Premium $26,927 $30,011 $85,061 $36,000  War $1,226 $1,501 $8,506 $3,600  Terrorism (TRIA) $736 $1,576 $2,127 $3,600  Surplus Lines Taxes N/A $993 N/A N/A  Total Premium $28,889 $34,080 $95,694 $43,200  The premium is subject to annual audit. Significant policy exclusions include but are not limited to the following: asbestos, nuclear, expected injury, contractual liability, liquor liability, workers compensation The renewal policy includes the following additional restrictions, coverage reductions or deductible increases: o Hangarkeepers deductible increased to $5,000 o Personal Injury Liability: Limit Decreased to $25,000,000 DocuSign Envelope ID: 44AF816A-7096-4704-A29E-BFBD6A87A09E C21-160   2                                                                                                                                                                                   © 2021 Arthur J. Gallagher & Co.  o Garagekeepers Deductible: Increased to $5,000 o Excess Employers Liability Limit: Decreased to $25,000,000  Immediately report all claims to: Arthur J. Gallagher Risk Management Services Attention: Brad Meinhardt brad_meinhardt@ajg.com Office: 702-998-3902  Gallagher is responsible for the placement of the following lines of coverage: Workers Compensation, Crime, Cyber, Public Entity Liability, Aviation, Property, Auto, Excess Liability It is understood that any other type of exposure/coverage is either self-insured or placed by another brokerage firm other than Gallagher. If you need help in placing other lines of coverage or covering other types of exposures, please contact your Gallagher representative.  It is recommended that you consider purchasing coverage for the following coverages, which are not included in your insurance program: o Pollution Liability o Foreign Liability To bind this policy, please refer to the 'Client Authorization to Bind Coverage' page attached. 1. Note any changes you desire to be made. 2. Date and sign. 3. Return prior to the effective date of coverage. We appreciate your business and look forward to working with you in the coming year. Please contact me if you have any questions. Sincerely, Nathan Kathol Client Service Manager Enclosure DocuSign Envelope ID: 44AF816A-7096-4704-A29E-BFBD6A87A09E     Compensation Disclosure Schedule Coverage(s) Carrier Name(s) Wholesaler, MGA, or Intermediary Name 1 Estimated Annual Premium 2 Comm % or Fee 3 Gallagher U.S. owned Wholesaler, MGA or Intermediary % Airport Liability National Union Fire Insurance Company of Pittsburgh, PA (AIG), Arthur J. Gallagher (Las Vegas) $28,889 0% 15% Airport Liability Starr Indemnity & Liability Company Arthur J. Gallagher (Las Vegas) $34,080 0% 15% Airport Liability ACE Property & Casualty Insurance Company (Chubb) Arthur J. Gallagher (Las Vegas) $95,694 0% 15% Airport Liability Old Republic Insurance Company Arthur J. Gallagher (Las Vegas) $43,200 0% 15% 1. We were able to obtain more advantageous terms and conditions for you through an intermediary/ wholesaler. 2. If the premium is shown as an indication: The premium indicated is an estimate provided by the market. The actual premium and acceptance of the coverage requested will be determined by the market after a thorough review of the completed application. * A verbal quotation was received from this carrier. We are awaiting a quotation in writing. 3. The commission rate is a percentage of annual premium excluding taxes & fees. * Gallagher is receiving ___% commission on this policy. The fee due Gallagher will be reduced by the amount of the commissions received. DocuSign Envelope ID: 44AF816A-7096-4704-A29E-BFBD6A87A09E   Important Disclosures IMPORTANT: The proposal and/or any executive summaries outline certain terms and conditions of the insurance proposed by the insurers, based on the information provided by your company. The insurance policies themselves must be read to fully understand the terms, coverages, exclusions, limitations and/or conditions of the actual policy contract of insurance. Policy forms will be made available upon request. We make no warranties with respect to policy limits or coverage considerations of the carrier. TRIA/TRIPRA Disclaimer – If this proposal contains options to purchase TRIA/TRIPRA coverage, the proposed TRIA/TRIPRA program may not cover all terrorism losses. While the amendments to TRIA eliminated the distinction between foreign and domestic acts of terrorism, a number of lines of coverage excluded under the amendments passed in 2005 remain excluded including commercial automobile, burglary and theft insurance; surety insurance, farm owners multiple perils and professional liability (although directors and officers liability is specifically included). If such excluded coverages are required, we recommend that you consider purchasing a separate terrorism policy. Please note that a separate terrorism policy for these excluded coverages may be necessary to satisfy loan covenants or other contractual obligations. TRIPRA includes a $100 billion cap on insurers' aggregate liability. TRIPRA is set to expire on December 31, 2027. There is no certainty of extension, thus the coverage provided by your insurers may or may not extend beyond December 31, 2027. In the event you have loan covenants or other contractual obligations requiring that TRIA/TRIPRA be maintained throughout the duration of your policy period, we recommend that a separate "Stand Alone" terrorism policy be purchased to satisfy those obligations. Compensation Disclosure 1. Gallagher Companies are primarily compensated from the usual and customary commissions, fees or, where permitted, a combination of both, for brokerage and servicing of insurance policies, annuity contracts, guarantee contracts and surety bonds (collectively “insurance coverages”) handled for a client’s account, which may vary based on market conditions and the insurance product placed for the client. 2. In placing, renewing, consulting on or servicing your insurance coverages, Gallagher companies may participate in contingent and supplemental commission arrangements with intermediaries and insurance companies that provide for additional compensation if certain underwriting, profitability, volume or retention goals are achieved. Such goals are typically based on the total amount of certain insurance coverages placed by Gallagher with the insurance company, not on an individual policy basis. As a result, Gallagher may be considered to have an incentive to place your insurance coverages with a particular insurance company. If you do not wish to have your commercial insurance placement included in consideration for additional compensation, contact your producer or service team for an Opt-out form. 3. Gallagher Companies may receive investment income on fiduciary funds temporarily held by them, or from obtaining or generating premium finance quotes, unless prohibited by law. 4. Gallagher Companies may also access or have an ownership interest in other facilities, including wholesalers, reinsurance intermediaries, captive managers, underwriting managers and others that act as intermediaries for both Gallagher and other brokers in the insurance marketplace some of which may earn and retain customary brokerage commission and fees for their work. If you have specific questions about any compensation received by Gallagher and its affiliates in relation to your insurance placements, please contact your Gallagher representative for more details. In the event you wish to register a formal complaint regarding compensation Gallagher receives from insurers or third- parties, please contact Gallagher via e-mail at Compensation_Complaints@ajg.com or by regular mail at: Chief Compliance Officer Gallagher Global Brokerage Arthur J. Gallagher & Co. 2850 Golf Rd. Rolling Meadows, IL 60008      DocuSign Envelope ID: 44AF816A-7096-4704-A29E-BFBD6A87A09E   CARRIER RATINGS AND ADMITTED STATUS Proposed Insurance Companies A.M. Best’s Rating & Financial Size Category * Admitted/Non-Admitted ** National Union Fire Insurance Company of Pittsburgh, PA (AIG), A XV Admitted Starr Indemnity & Liability Company A XV Non-admitted ACE Property & Casualty Insurance Company (Chubb) A++ XV Admitted Old Republic Insurance Company A+ XV Admitted *Gallagher companies use A.M. Best rated insurers and the rating listed above was verified on the date the proposal document was created. Best's Credit Ratings™ reproduced herein appear under license from A.M. Best and do not constitute, either expressly or impliedly, an endorsement of Gallagher’s service or its recommendations. A.M. Best is not responsible for transcription errors made in presenting Best's Credit Ratings™. Best’s Credit Ratings™ are proprietary and may not be reproduced or distributed without the express written permission of A.M. Best.  A Best’s Financial Strength Rating is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. It is not a warranty of a company’s financial strength and ability to meet its obligations to policyholders. Best's Credit Ratings™ are under continuous review and subject to change and/or affirmation. For the latest Best’s Credit Ratings™ and Guide to Best’s Credit Ratings, visit the A.M. Best website at http://www.ambest.com/ratings. **If coverage placed with a non-admitted carrier, it is doing business in the state as a surplus lines or non-admitted carrier, and is neither subject to the same regulations as an admitted carrier nor do they participate in any state insurance guarantee fund. Gallagher companies make no representations and warranties concerning the solvency of any carrier, nor does it make any representation or warranty concerning the rating of the carrier which may change. DocuSign Envelope ID: 44AF816A-7096-4704-A29E-BFBD6A87A09E     EAGLE COUNTY, COLORADO CLIENT AUTHORIZATION TO BIND COVERAGE After careful consideration of Gallagher’s proposal dated May 24, 2021, we accept the following coverage(s). Please check the desired coverage(s) and note any coverage amendments below: POLICY OPTIONS: YES NO OPTION DESCRIPTION National Union Fire Insurance Company of Pittsburgh, PA (AIG) Premium: $26,927 Include War? Premium: $1,226 Include Terrorism (TRIA)? Premium: $736 Starr Indemnity & Liability Company Premium: $30,011 Include War? Premium: $1,501 Include Terrorism (TRIA)? Premium: $1,576 ACE Property & Casualty Insurance Company (Chubb) Premium: $85,061 Include War? Premium: $8,506 Include Terrorism (TRIA)? Premium: $2,127 Old Republic Insurance Company Premium: $36,000 (not including 3% SL taxes Include War? Premium: $3,600 Include Terrorism (TRIA)? Premium: $3,600 The above coverage may not necessarily represent the entirety of available insurance products. If you are interested in pursuing additional coverages other than those addressed in the coverage considerations included in this proposal, please list below: ____________________________________________________________________________________ ____________________________________________________________________________________ EXPOSURES AND VALUES We confirm the payroll, values, schedules, and other data contained in the proposal, and submitted to the underwriters, are compiled from our records and we acknowledge it is our responsibility to see that they are maintained accurately. If no updates were provided to Gallagher, the values, exposures and operations used were based on the expiring policies. I have read, understand and agree that the above-information is correct and has been disclosed to us prior to authorizing Gallagher to bind coverage and/or provide services to us. __________________________________________ Client Signature __________________________________________ Dated DocuSign Envelope ID: 44AF816A-7096-4704-A29E-BFBD6A87A09E 5/27/2021