ITEM NO:  __7a_Supp_______
DATE OF
MEETING:__Sept 7, 2010_____
Liability Insurance
Renewal Briefing
Port Risk Management
Presented September 7, 2010
Jeff Hollingsworth, Risk Manager

Outline of Presentation
Review of Liability Insurance Coverage
Insurance Premium Factors
Liability Premium Re-Cap
Renewal Coverage Process
Expiring Premium 2009-2010
Renewal Assumptions for 2010-2011

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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
Airport         Airport operations only
Auto         Automobile liability (above what is self insured)

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Liability Insurance Coverage
Coverage   Description of Exposure Covered
Fiduciary        Liability of managing employee benefit plans
Foreign        Port employees who are in foreign countries
Mobile Home    Acts of Port with respect to airport mobile home
parks (Will not be renewed)
Crime        Dishonest acts of Port employees
Vessel          Police boat and vessels for Real Estate
Bonds        Self-insured pension bonds, notary bonds, custom
bonds, etc..
Excess Workers   Do not purchase at this time.
Compensation
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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 in any location
Airport enplanements, Seaport TEUs, Rail link
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Liability Premium Re-Cap



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Renewal Coverage Process
Coverage will run 10/1/2010 to 10/1/2011
Risk management networks with other port and airport
entities to check market limits, deductibles, and coverage
exclusions or enhancements during renewal process
Port submits completed application packages and signed
declarations to the Port's broker, who markets the account
and solicits insurance bids on the Port's behalf.
Risk management reviews insurance bids and proposals to
include coverage costs/options, and deductibles with
Division management prior to binding coverage with our
broker.
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Expiring Premium: 2009-2010
Coverage Line     Limits           Deductible   Expiring Premium
10/1/2009-10/1/2010
Non-Aviation          $50 Million            $1,000,000      $386,000

Airport               $300 Million            $50,000        $222,000

Police                $10 Million             $1,000,000      Included in Non-Aviation
Paid - $0.00
Auto              Self Insured First Million   Self-Insured     No Premium  Self insured
Claims ~ $20,000 Incurred
Public Officials and       $10 Million              $1,000,000      Included in Non-Aviation
Employment Practices                        $1,000,000
Incurred ~$61K
Other Coverage (includes   Varies                Varies         $50,000
Crime, Fiduciary, Foreign,
Bonds, Mobile Home)
Total 2008= $705,000   Total 2009    $658,000 Total

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Assumptions For 2010-2011
(To Be Finalized In Discussion With Divisions)
Terrorism
Purchase for non-aviation liability policies
Airport Limits
Keep at $300 Million
Ramp Insurance at Airport
Continue to purchase for ramp control vendor
Excess Worker Compensation
Do not insure-due to cost

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Assumptions For 2010-2011
(To Be Finalized In Discussion With Divisions)
Rail operating volumes not enough to impact
premium for Real Estate Division
Renew the Combined Non-Aviation policy
Includes police, public officials, and employment
practices coverage
Total cost ~ $675,000 to $700,000 (Estimated)

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