PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                      Item No.         7d 
STAFF BRIEFING 
Date of Meeting     September 24, 2013 
DATE:      September 16, 2013 
TO:       Tay Yoshitani, Chief Executive Officer 
FROM:     Jeff Hollingsworth, Risk Manager 
SUBJECT:   Briefing on the Port  liability insurance renewal for the policy year
beginning on October 1, 2013 
SYNOPSIS 
This briefing is on the upcoming Port's liability insurance renewal. The Port's current
liability insurance program expires on September 30, 2013. The Port is in the process of
finalizing the purchase of this coverage for the policy year starting on October 1, 2013, 
and expiring on September 30, 2014. 
BACKGROUND 
The Commission presentation will focus around the issues of renewing the insurance
liability program.   The primary insurance policies to be renewed include the airport
operators general liability, the non-aviation general liability, police professional liability,
public official's liability, fiduciary liability, and employee dishonesty (crime). The
renewal process for these policies include updating the Port underwriters on current and
forecast finances, the operating budget, current and ongoing operations, and on-going and
new claims. The Port uses an insurance broker (Alliant Insurance Services, Inc.) to help
collect and aggregate the renewal data and then submit the data to incumbent and
prospective insurance carriers to obtain quotes for the renewal. 
Additional factors to those mentioned above include the strength of the Port's indemnity
agreements with its lessees, prime tenants, and contractors as well as in personal and
professional service agreements.  The distinction between operations controlled and run
by the Port versus what tenants do is also a factor. The number and magnitude of current
and recently closed claims is also part of the underwriting review.  Examples of Portmanaged
operations that the underwriters will review closely include the new rental car
busing operation, marina operations, and airport parking. 
The current state of the insurance markets also dictates the type of pricing that the Port
will obtain on its renewal.  Certain areas such as general liability have remained fairly
flat, while areas such as errors and omissions, directors/officers, and public official's
liability have had market increases since a year ago.  The Port self-insures auto liability
for the first million but then insures auto, including all Port vehicle operations, through

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 16, 2013 
Page 2 of 2 
excess coverage up to $50 million. Thus the size of the Port's fleet has a direct impact on
the cost for this coverage. 
Each policy has a specific deductible. The deductible and the limits of the policy impact 
the cost of coverage.  In general, higher deductibles and lower limits will result in lower
premium costs. Adding non-standard coverage, such as terrorism liability, will add to the
cost of the policy. 
Areas that the underwriters are focusing on for this renewal include overall limits at the
Airport, the rental car facility busing operation, the ramp control tower at the Airport, and
the anticipated amount of rail operations on the rail link. 
Risk Management will review the quotes our broker provides and then consider options
to limit or enhance coverage. The goal is to minimize cost increases but at the same time
not under-insure critical operations. Risk Management will review options with division
Budget and Finance to get their input prior to binding coverage on September 30. 
The insurance renewed on September 30, 2012, at a cost of $781,000. The renewal cost
for September 30, 2013, is anticipated to be between $800,000 and $815,000. 
ATTACHMENTS TO THIS BRIEFING 
Computer slide presentation. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None