TO: AC Transit Board of Directors
FROM: Jill A. Sprague, General Counsel
SUBJECT: 2022-2023 District Commercial Property Insurance Program Renewal
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to bind the District's 2022-2023 Commercial Property Insurance and Deadly Weapons Response insurance programs.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Authorizing the General Manager to bind the proposed insurance programs will allow the District to maintain its risk retention and risk transfer programs at optimum levels for the 2022-2023 policy period.
BUDGETARY/FISCAL IMPACT:
The total budgetary impact of binding the proposed insurance coverages as recommended by staff will not exceed $1,830,342 if the Board authorizes the binding of the recommended renewal options for both the expiring commercial property and the deadly weapons response insurance programs.
BACKGROUND/RATIONALE:
During the April 13, 2022, Board meeting, the Board authorized the General Manager to bind the 2022-2023 Excess Commercial Liability, Excess Workers' Compensation, Cyber-Liability, Fiduciary Liability, Commercial Crime, and Travel Accident components of the District's Transit Operations Insurance Program.
The District's 2021-2022 commercial property and deadly weapons response insurance programs will expire at 12:01 a.m. on July 1, 2022. Staff is requesting that the Board authorize the General Manager to bind both the renewal of the commercial property insurance program and the deadly weapons response insurance program as recommended in this report.
The Property Insurance Program being presented to the Board for consideration is a comprehensive commercial insurance policy that insures District property for damage to buildings, machinery, contents, as well as business interruption and loss of rental income, resulting from a covered cause of loss, such as ...
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