Board of Airport Commissioners

RESOLUTION NO.      - Renewal of Los Angeles World Airports Insurance Polices:  Including General All-Risk Property and Terrorism, General Aviation Liability, War and Allied Perils (Terrorism), Cyber Liability and Technology Errors and Omissions, Employment Practices Liability, and Earthquake Parametric coverages, arranged and paid through Alliant Insurance Services, Inc., Broker of Record, in amount not to exceed $27,223,450 for one (1)-year policies or $33,623,450 including a two (2)-year General Aviation Liability policy \nPURPOSE: The purpose of this item is to authorize staff to negotiate within the requested not-to-exceed premium limits the renewal of various property and liability insurance policies, as listed in the staff report, that expire between July 1, 2023 and August 1, 2023. \nRECOMMENDATIONS: Adoption of the Report requesting that the Board of Airport Commissioners determine that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.f of the Los Angeles City CEQA Guidelines; approve purchase of up to $2.5 billion limits of General All-Risk Property Insurance (inclusive of a Business Interruption endorsement, up to $25 million coverage for Earthquake, $100 million coverage for Flood, $1 billion coverage for Wind Storm damage, $250 million coverage for Boiler and Machinery coverage) and up to a $2.5 billion coverage for Terrorism insurance for a one-year policy from primary insurance underwriter American International Group/American Home Company, and/or FM Global for a total premium not to exceed $17,001,200 (plus, any additional required state and federal taxes and fees); further approve purchase of up to $1.3 billion limits of General Aviation Liability insurance and up to $1.0 billion limits of War and Allied Perils (Terrorism) insurance coverages, for a one- or a two-year policy period from Global Aerospace, Inc., Starr aviation/Starr Surplus Lines Company, or Chubb as the primary leader for a total premium not to exceed $5.93 million for the first year and $6.4 million for the second year (plus any additional required state and federal taxes and fees); further approve purchase of up to $30 million limit of Cyber Liability and Technology Errors and Omissions insurance coverage for a one-year policy or for a two-year policy for a total premium not to exceed $1,067,250 (plus any additional required state and federal taxes and fees); further approve purchase of up to $75 million primary and excess Earthquake Parametric insurance coverage for a one-year period from Swiss RE, Homesite Ins. Co./American Family, London-Chaucer syndicate, and/or Beazley for a total premium not to exceed $2.5 million (plus any additional required state and federal taxes and fees); further approve purchase of up to $10 million aggregate and primary excess Employment Practices Liability insurance coverage for a one-year policy period from the following underwriters: Zurich, Ironshore, Chubb and/or Global Aerospace, Inc. for a total premium not to exceed $725,000 (plus any additional required state and federal taxes and fees); authorize the Chief Financial Officer to set annual self-insured, non-aggregate retention, or deductible payments of up to $750,000 per General All-Risk Property and Terrorism, Bodily Injury and Property Damage, Personal and Advertising Injury and Cyber Liability and Technology Errors and Omissions claims, payable directly to the Lead Underwriter and/or contracted Los Angeles World Airports (LAWA) Broker of Record, Alliant Insurance Services, Inc.; further authorize the Chief Financial Officer to negotiate and set the annual self-insured retention, non-aggregate retention, or deductible payments per occurrence up to $1 million for Excess Auto and up to $2.5 million Employment Practices Liabilities and a Public Officials coverage, payable directly to Lead Underwriter and/or contracted LAWA Broker of Record, Alliant Insurance Services, Inc.; further authorize the Chief Financial Officer to continue negotiating and set the total premium cost not to exceed $27,223,450 for one-year policies or $33,623,450 if the second year is included in the General Aviation Liability policy (plus any additional required state and federal taxes and fees); further authorize the Chief Financial Officer to submit the above premiums to the contracted LAWA Broker of Record (Alliant Insurance Services, Inc.), which, by contract has the authority to receive and disburse premiums to the various participating insurance underwriters on behalf of LAWA; further authorize the Chief Executive Officer, or the Chief Financial Officer, to approve payment of all claim-related expenses in the final negotiated amount not to exceed $500,000 or less per claim up to an aggregate of $1 million per year. (Tatiana Starostina)\n