Agenda Item #18
Aboveground and Underground Fuel Storage Tank Policy Renewal
Renew the district's under (UST) and above (AST) ground diesel and gasoline fuel storage tank policy. The policy covers the district's nine (9) underground and nineteen (19) aboveground fuel tanks from accidental spills. The State of Florida, Department of Environmental Protection requires gasoline and diesel fuel tank owners/operators to carry insurance for their tanks when the gallon capacity exceeds 550 gallons for above ground and 110 gallons for underground tanks.
The last policy procured for the district's UST and AST insurance was a two (2) year policy with Indian Harbor Insurance (XL Group) and is set to expire on March 24, 2017. The district property and casualty broker, Arthur J. Gallagher and Co. was tasked with marketing a new or renewal policy for this exposure. During this process, four (4) carriers responded to the marketing. Two (2) carriers declined to offer a quote as they do not insure USTs that have been in the ground greater than 26 years. All of the district's UST's have been underground in excess of 30 years. One carrier has not responded to the bid request and one carrier indicated that they would not quote a "tank pollution" only policy. The remaining carrier, Indian Harbor Insurance (XL Group) was the only carrier willing to offer a quote. Indian Harbor Insurance has quoted a two (2) year policy to cover this exposure at a cost of $18,807.00. This policy has the same terms as the current policy, which is a $25,000 deductible per occurrence and will cover the District for corrective action following a fuel spill up to $1,000,000 and a $5,000,000 aggregate. This renewal is an increase of $252.00 from the premium charged in 2015.
Grant the Superintendent authority to bind the School Board’s storage tank third party liability coverage insurance effective March 24, 2017 in the amount of $18,807.00.
Information - 2/28/2017
Consent after Information3/14/2017
Authority for Action
Board Policy 8710, Florida Department of Environmental Protection Rule #62-761.900
Involves Expenditure of Funds Directly in the Classroom
Source of Funding
Operating - Other
Mark Langdorf, Director, Office of Employee Benefits & Risk Management, ext. 620
Dr. Carol Kindt, Deputy Superintendent/Chief Human Resources Officer, Human Resources Services, ext. 200
Attachment: 2017-19 Ins. Policy - UST-AST Pollution Surplus Lines Disclosure - 2-3-2017.pdf
Attachment: 2017-19 Ins. Policy - UST-AST Pollution Carriers Responding to Bid - 2-3-2017.pdf
Attachment: 2017-19 Ins. Policy - UST-AST Pollution Authorization to Bind Coverage - 2-3-2017.pdf
Attachment: 2017-19 Ins. Policy - UST-AST Pollution Proposal 2-3-2017.pdf