HomeMy WebLinkAbout2002 03 11 Informational C Purchase of Insurance for Costs Resulting in Catastrophic Events
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COMMISSION AGENDA
ITEM C
Consent
Informational X
Public Hearing
Regular
March 11, 2002
Meeting
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Mgr. 1 Dept.
Authorization
PURPOSE: The General Services Department wishes to inform the Commission that some
preliminary research has been done in response to a question raised at a recent City Commission
meeting, The question related to the City's ability to require a business to purchase insurance
coverage to pay for fire suppresion, law enforcement, and other costs resulting from a
catastrophic event, such as occurred at Affordable Tire Company.
RELEVANT FACTS:
1. Businesses can purchase insurance to guard against costs related to fire suppresion
and law enforcement, with such policies typically carrying limits of $2,500.00, but
with higher limits available at increased premium cost.
2. Such coverage is a highly-specialized risk, and is available through carriers such as
The Hartford, Travelers Insurance, and CAN Insurance.
3. The City's broker for property and casualty insurance, Paul Dawson of Risk
Management Associates, Inc., was consulted, and he suggested that the business in
question contact a very large brokerage such as Brown and Brown in Maitland or
Insurance Services of America. They have access to all markets, and would be best
equipped to guide the business.
4. For further information, CNA Insurance in Orlando was contacted. They advised
that such coverage requires very unique undenvriting, and that no information about
anyone business until it applies for coverage, and the company's site and operations
were evaluated.
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March 11,2002
City Commission Informational Agenda
Item "C"
5. In summary, insurance coverage for fire suppression and law enforcement costs is
available, but at high premium cost, and only through carriers that underwrite this
kind of special risk.
ATTACHMENTS: None
COMMISSION ACTION: None Required.