ITEM NO: 7c_supp_________
DATE OF
MEETING:__Sept 22, 2009_______
Liability Insurance
Renewal Briefing
Port Risk Management
Presented September 22, 2009
Jeff Hollingsworth, Risk Manager

Outline of Presentation
Review of Existing Coverages
Premium Re-Cap
Renewal Process for 10/1/2009
Specific Issues
Renewal Recommendation

2

Major Liability Coverages
Coverage   Description
Police      Police operations
Public      Wrongful acts of any Port
Officials     employee/volunteer
Employment Wrongful acts of Port with
Practices    respect to employees
Seaport     All seaport operations
Airport     Only airport operations
Auto      Liability of Port's fleet
3

Minor Liability Coverages
Coverage   Description
Fiduciary        Benefit plans for employees
Foreign        Acts of Port employees working/traveling abroad
Mobile Home    Acts of Port with respect to airport mobile home
parks
Crime        Employee dishonesty acts
Vessel          Police boat
Bonds        Self-insured pension bonds
Excess workers    Liability to worker injuries above Port's self
compensation     insurance program
4

Insurance Premium Factors
Premium rates depend on:
Total operating/capital budget of Port
Record of past losses and claims
Payroll
Strength of our indemnity agreements with tenants
Operations directly controlled by Port versus those
under ownership of tenant
Size of fleet
Number of employees and concentration

5

Liability Premium Re-Cap



6

Renewal Coverage Details
Coverage will run 10/1/2009 to 10/1/2010
Port selected a new broker who has an identified small
business partner. A 10% target goal of small business
involvement is included in the broker service agreement.
Risk management reviews claims incurred, coverage
costs/options, and deductibles with Division management
Risk management networks with other public entities and
Ports to check limits, deductibles, losses, and coverage
exclusions or enhancements during renewal process

7

Premium: 2008-2009
Coverage Line     Limits           Deductible   Expiring Premium
10/1/2008-10/1/2009
Seaport              $50 M (Million)          $1,000,000      $231,000
Losses
Paid~$13K
Airport               $300 M                $50,000        $222,000
Loss Paid~ $36K
Reserved ~
$100K
Police                $3 M                 $1,000,000      $87,.000
Paid - $0.00
Auto              Self Insured First Million   Self-Insured     Self-Insured

Public Officials and       $5 M Public Officials       $1,000,000      $122,000
Employment Practices     $5 M Employment        $1,000,000
Incurred ~$61K
Other Coverage (includes   Varies                Varies         $44,000
Crime, Fiduciary, Foreign,
Bonds, Mobile Home)
Total 2007 = $937,000  Total 2008    $706,000 Total
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Specific Issues 2009-2010
Terrorism
Excluded under all policies after 9/11
Not purchased for the Airport since 9/11
Purchased on Seaport side for cruise
Airport Limits
Benchmarking Against Other Airports
Ramp Insurance at Airport
Purchased by Port for vendor
Excess Worker Compensation
Not insured

9

Other Airports-Limits
Entity      Deductible   Limits
Purchased
Cincinnati      $100,000      $300 Million
Minn/St Paul    $50,000       $500 Million
LAWA     $10,000    $1.30 Billion
San Francisco   $25,000       $500 Million
Metro WA DC  $200,000     $750 Million
Philadelphia    $ 1 Million     $500 Million



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Liability Renewal Recommendation
Renew most coverage as its expiring
Review limits of coverage for benchmark airports
Evaluate cost of terrorism and war risk
Ramp insurance  Port continue to purchase
Renew coverage with terrorism for seaport
Evaluate excess worker compensation
Total cost ~ $810,000 (if renewed as expiring)
Excludes excess workers compensation
Costs to be reviewed when quoted with Divisions
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