Item No.:                    7a_supp 
Meeting Date:          September 30, 2014 
Liability Insurance 
Renewal Update

Outline of Presentation 
Review of Liability Insurance Coverage 
Insurance Premium Factors
Premium Re-Cap 
Renewal Coverage Process 
Expiring Premium 2013-2014 
Coverage Issues 2013-2014 
Renewal Issues 2014-2015

Liability Insurance Coverage 
Coverage           Description of Exposure Covered 
Law Enforcement         Police operations 
Public Officials            Wrongful acts of Port employees 
Employment Practices      Wrongful acts of Port with respect to
employees 
Non-Aviation            Non-aviation operations 
Aviation                 Airport operations only 
Auto                  Automobile liability (Above what is selfinsured
)

Liability Insurance Coverage 
Coverage             Description of Exposure Covered 
Fiduciary                  Liability of managing employee benefit
plans 
Foreign                    Port employees who are in foreign
countries 
Crime                   Dishonest acts of Port employees 
Vessel                    Police boat and other owned vessels 
Bonds                  Self-insured pension bonds, notary
bonds, custom bonds, etc. 
Excess Workers Compensation    Not purchasing

Insurance Premium Factors 
Total operating-capital budget/payroll
Past losses and claims 
Strength of our indemnity agreements with
tenants 
Indemnity/transfer in construction contracts 
Operations directly controlled by Port versus
tenant controlled operations 
Grain terminal run by tenant 
Marinas run by Port

Insurance Premium Factors 
Size of automobile fleet and how utilized 
Busing operations 
Inter-local agreements 
Added Normandy Park Dispatch Agreement 
Valley SWAT Team Interlocal 
Number of employees and payroll 
Airport enplanements, Seaport TEUs, Rail link

Insurance Premium Factors 
Insurance markets 
External events 
Amount of Port's deductible 
Limits requested 
Special coverage requests

$600,000,000                                                                             $1,600,000
Liability Insurance Premium Versus Total Revenue
$1,400,000
$500,000,000

$1,200,000

Liability
$400,000,000                                                                Premium
$1,000,000

$300,000,000                                                                             $800,000

$600,000
$200,000,000

$400,000

$100,000,000
$200,000

$- $-
2004   2005   2006   2007   2008   2009   2010   2011   2012   2013   2014  2015 Est

Renewal Coverage Process 
Coverage will run 10/1/2014 to 9/30/2015 
Risk Management department networks with
other port and airport entities to check current
limits, deductibles, and coverage offered in the
marketplace. 
Update of operations, and current claims and
litigation.

Renewal Coverage Process 
Port submits renewal information to the Port's
broker, who markets the account and solicits
insurance bids and coverage on the Port's
behalf. 
Risk Management reviews insurance proposals
and discusses issues/costs with Division
management prior to binding coverage

Expiring Premium: 2013-2014 
Coverage Line     Limits          Deductible   Expiring Premium 
10/1/2013-9/30/2014 
Non-Aviation          $50 Million            $1,000,000      $460,000 

Airport               $300 Million            $50,000        $282,000 
Police                $10 Million             $1,000,000      Included in Non-Aviation 

Auto                Self Insured First Million   Self-Insured      No Premium  Self insured 

Vessels               $ 1 Million              $5,000         $21,000 
Public Officials and      $10 Million             $1,000,000      Included in Non-Aviation 
Employment Practices 

Other Coverage: Crime,   Varies               Varies         $38,000 
Fiduciary, Foreign, Bonds 
Total = $801,000

Coverage Issues For 2014-2015 
(To Be Finalized In Discussion With Divisions prior to 10/1/2014) 
Terrorism 
The TRIA Act requires Congressional action; expires 12/31/2014 
Terrorism Risk and Insurance Act (TRIA) 
Purchase for non-aviation liability policies 
Airport Limits 
Staying at $500 Million 
Not purchasing terrorism coverage 
Marine General Liability 
Port does purchase terrorism coverage 
Excess Worker Compensation 
Not pursuing 
Cyber Liability Coverage 
New coverage  currently not purchased 
Reviewing options  Pricing ranges between $60,000 to $70,000

Renewal Estimate For 2014-2015 
(To Be Finalized In Discussion With Divisions prior to 10/1/2014) 

Renewal Estimate~ $805,000 to $815,000 with
no cyber coverage 
Renewal with Cyber Liability~ $870,00