Title: BOILER AND MACHINERY INSURANCE POLICY

Description:

• The Premium may increase by a maximum of 15% ($7,388) over the expiring policy as a result of an increase in Total Insured Values, the number of boilers/locations, and a premium rate increase.
• 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 352 objects at over 177 locations.
• In the event we would self-insure this risk to save premium, required inspections are available from the State at a cost of approximately $15,000. We would forgo any insurance recovery that would be available through this policy.  We are expecting a claim recovery of approximately $46,500 to $57,000 from our current policy for a damaged chiller motor at Diamond View Elementary.  Additionally, we would still be required to purchase insurance for schools funded through the COPS program at a cost of approximately $27,000.
• The District’s broker, Arthur J. Gallagher and Co., has recommended this Boiler and Machinery Insurance and receives no commission on this policy.

Recommendation:

I recommend that the School Board renew its Boiler and Machinery Insurance policy with Hartford Steam Boiler, effective December 31, 2004 to December 31, 2005, for a premium not to exceed $56,642.

Financial Impact:
The financial impact to the District for this coverage is $56,642.  The source of funds is the General Funds budget.

For Additional Information, contact:

Joseph M. Moore (moorej@palmbeach.k12.fl.us) ;Dianne L. Howard