Title: IN3 RENEWAL OF BOILER AND MACHINERY INSURANCE POLICY

Recommendation:

I recommend that the School Board renew its Boiler and Machinery Insurance policy with Hartford Steam Boiler, effective December 31, 2006 to December 31, 2007, for a premium of $54,128.

Description:

• The premium increased by  5% ($2,570) over the expiring policy as a result of an increase in Total Insured Values and the number of boilers/locations.

• The District is able to renew the existing $20 million policy limit, which excludes windstorm and lightning coverages (also excluded by all Boiler and Machinery carriers).

• The deductible is $10,000 for all other perils.

• Hartford Steam Boiler provides inspections as required by Florida law and certificates for approximately 370 objects at over 182 locations. Although inspections are available from the State at a cost of approximately $15,000, the District would forgo any insurance recovery that would be available through this policy. 

• Last year, the District recovered over $63,800 from Hartford Steam Boiler for two Boiler & Machinery claims. In addition, the District is required, at a minimum, to purchase Boiler & Machinery insurance for schools funded through COPS program at a cost of approximately $27,000.

• The District’s insurance broker, Arthur J. Gallagher and Co. Inc., has recommended this Boiler and Machinery Insurance program and receives no commission on this policy.

Financial Impact:

For Additional Information, contact:
Joseph M. Moore (moorej@palmbeach.k12.fl.us) /Dianne L. Howard