ITEM NO: 7b_Supp 
DATE OF 
MEETING:__9/11/2012______ 
Liability Insurance 
Renewal Update 
Presented September 11, 2012 
Jeff Hollingsworth, Risk Manager

Outline of Presentation 
Review of Liability Insurance Coverage 
Insurance Premium Factors
Premium Re-Cap 
Renewal Coverage Process 
Expiring Premium 2011-2012 
Renewal Issues 2012-2013 

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

3

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   Not purchasing. 
Compensation 

4

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 

5

Insurance Premium Factors 
Size of automobile fleet and how utilized 
Inter-local agreements 
Number of employees and payroll 
Airport enplanements, Seaport TEUs,
Eastside Rail Corridor, cruise
passengers/vessel calls 

6

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

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$600,000,000                                                                                                         $1,600,000
Liability Insurance Premium Versus Total Revenue
-Liability Premium *Port Revenue

$1,400,000
$500,000,000

$1,200,000

$400,000,000
$1,000,000
Premiun
$300,000,000                                                                                                          $800,000
Reverue                                                                                                                                                                     Liability
Port                                                                                                                                                           $600,000
"g":

$400,000

$100,000,000 |   |                     |   l   |   |   |   |   |   |   $200,000



l          l          |          l          l          I          |          |          |          |          I          l          l
2000   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011   2012  2013 Est
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Renewal Coverage Process 
Coverage will run 10/1/2012 to 9/30/2013 
Risk Management department networks with other port
and Airport entities to check current limits, deductibles,
and coverage offered in the marketplace. 
Update to broker of operations, and current claims and
litigation. 
Port's broker markets the coverage 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. 
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Expiring Premium: 2011-2012 
Coverage Line     Limits           Deductible   Expiring Premium 
10/1/2011-9/30/2012 
Non-Aviation           $50 Million             $1,000,000      $435,000 

Airport                $500 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 = $776,000 
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Coverage Issues For 2012-2013 
(To Be Finalized In Discussion With Divisions prior to 10/1/2012)
Terrorism 
Purchase for non-aviation liability policies 
Airport Limits 
Keep at $500 Million 
Ramp Insurance at Airport 
Continue to purchase for ramp control vendor 
Excess Worker Compensation 
Not pursuing 
Cyber Liabiltiy Coverage 
To look at over the course of next year 

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Operational Issues 2012-2013 
(To Be Reviewed In Discussion With Divisions prior to 10/1/2012)
Real Estate Division 
Eastside Rail Corridor operating volumes should not be
significant enough to impact premium 
Maintenance of East Marginal Way Grade Separation 
Special events/use of Port parks 
Aviation Division 
Landside Busing Operations  Coverage for operations
between terminal and RCF/Bus Maintenance Facilities 
Renewal Estimate~ $780,000 to $800,000

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