City of San Antonio - File #: 15-2002

• File #: 15-2002
• Type: Purchase of Services
• In control: City Council A Session
• On agenda: 4/9/2015
• Posting Language: An Ordinance authorizing the purchase of aircraft hull and liability insurance from Commerce and Industry Insurance Company, a subsidiary of American International Group, for a one year term beginning May 1, 2015 for a cost of $118,744.00, from the FY 2015 Liability Fund. [Ben Gorzell, Chief Financial Officer; Troy Elliott, Director, Finance]

DEPARTMENT: Finance


DEPARTMENT HEAD: Troy Elliott, CPA


COUNCIL DISTRICTS IMPACTED: City Wide


SUBJECT:

Purchase of Aircraft Hull and Liability Insurance


SUMMARY:

This ordinance authorizes the City Manager or her designee to pay premiums for the City of San Antonio's Aircraft Hull and Liability insurance in the amount of $118,744. The coverage would be renewed with Commerce and Industry Insurance Company, a subsidiary of American International Group (AIG), for a term beginning May 1, 2015 through May 1, 2016. The proposed coverage term is for one year. This policy provides aircraft hull and liability insurance coverage for potential losses arising out of the operations of the San Antonio Police Department (SAPD) Helicopter Unit.



BACKGROUND INFORMATION:

The Aircraft Hull and Liability policy provides coverage for physical damage to any of the helicopters owned by the City for the use of the San Antonio Police Department. The liability portion of the policy protects the City (officers, officials, and employees) in the event of a claim due to bodily injury or damage to the property of others arising out of the operation of the aircraft. The limit of liability for any single occurrence is set at $10,000,000.00. A special endorsement provides protection for cargo, spare parts, and the FLIR (Forward-Looking Infra-Red) detection system mounted in the aircraft. Protection for risks arising from riots, civil commotion, and terrorism is included. The current coverage is provided by Commerce and Industry Insurance Company (AIG), which has provided this protection since May, 2014.

In December 2014, the Finance Department, Risk Management Division, in cooperation with the City's Broker of Record, Marsh USA, began the renewal process of gathering the information necessary to support an effective and timely request for insurance for these important City assets.

In January, 2015, Marsh published a solicitation for quotes and di...