Item No.:                    7f_supp 
Meeting Date:        September 8, 2015 

Liability Insurance Renewal Update 
2015-2016

Renewal Coverage Process 
Coverage will run 10/1/2015 to 9/30/2016 
Risk Management department compares coverage terms and
costs with other port and airport entities to validate the
coverage we are selecting and to ensure we leave no gaps in
coverage.
Quotes on coverage are reviewed and final costs are discussed
with Division Finance and Budget 
Bind coverage on September 30, 2015

The Port uses a licensed broker to access insurance markets to obtain quotes on coverage which
Risk Management then reviews during the renewal process. Several policies are placed in London.

Port's 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 (marine, cruise) 
Aviation                 Airport operations only 
Auto                  Automobile liability (Above what is selfinsured
or $ 1 Million per claim) 

In 2014, Risk Management handled 116 auto claims; liability costs were $23,000 and physical
damage costs were $80,000.

Port's 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 Port vessels 
Bonds                  Self-insured pension bonds, notary
bonds, custom bonds, etc. 
Excess Workers Compensation    Not purchasing 

The Port has not purchased excess workers compensation in recent years due to cost.

Insurance Premium Factors 
Insurance markets 
Strength of Port indemnity agreements/leases 
Amount of Port's deductible 
Limits requested 
Special coverage requests 
Number of open claims and litigation 
Reserves on claims and litigation 
Port reserves at the end of second quarter totaled $3.2 Million, down from $3.5 Million in Q1.

Expiring Premium: 2014-2015 
Coverage Line     Limits          Deductible   Expiring Premium 
10/1/2014 -9/30/2015 
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         $10 Million             $1,000,000       Included in Non-Aviation 
Employment Practices 

Cyber               $5 Million             Varies - $50,000   $48,000 
Other Coverage: Crime,   Varies               Varies         $38,000 
Fiduciary, Foreign, Bonds 
Total = $849,000 

The Port added cyber coverage on 12/1/2014  last year's renewal saw no major increases.

$700,000,000                                                                  $1,400,000
Liability Insurance Premium Versus Total Revenue
2005 to 2016 Est
$600,000,000                                                                  $1,200,000


$500,000,000                                              Liability Premium          $1,000,000

Port Revenue
$400,000,000                                                                  $800,000


$300,000,000                                                                  $600,000


$200,000,000                                                                  $400,000


$100,000,000                                                                  $200,000


$- $-
2005  2006  2007  2008  2009  2010  2011  2012  2013  2014  2015 2016 Est

The Port's increase in the cost of liability insurance is tracking with revenue growth.

Liability Coverage Issues For 2015-2016 
(To Be Finalized In Discussion With Divisions prior to 10/1/2015) 
Terrorism 
The TRIA Act was reauthorized in 2015 (Terrorism Risk and Insurance Act) 
Continue to purchase for non-aviation liability policies but looking at stand-alone coverage 
Airport Liability Limits 
Staying at $500 Million 
Public Entity General Liability 
Initial quote from insurer is a 22% increase in premium 
Increase due to reserves on litigation claims the insurance company is carrying 
First premium increase since October 1, 2013. 
Marine Excess Liability Limits 
Staying at $50 Million 
Adding the Northwest Seaport Alliance as an additional insured onto this policy 
Excess Worker Compensation 
Not pursuing 
Cyber Liability Coverage 
Added as new coverage on 12/1/2014 
Will renew on October 1, 2015 with $5 Million in limits 
The Port's increase in the cost of public entity liability insurance is 22% or ~ $75,000.

Renewal Estimate For 2015-2016 
(To Be Finalized In Discussion With Divisions prior to 10/1/2015) 

Renewal Estimate ~ $940,000 to $960,000 
Overall total insurance costs for 2015 will be at or slightly less than budget.
Through end of July, insurance costs are roughly $72,000 below budget year
to date. 


The Port's favorable property insurance renewal on July 1, 2015 will offset most of the
increase to the liability insurance.