8K
Date: June 17, 2025
To: Honorable Mayor and Members of the City Council
From: Ian Dailey, Finance Director
By: Jason Nishiyama, Deputy Finance Director | [email protected] Subject: Finance – Approve Renewal of Automobile Physical Damage Insurance Coverage and Authorize Finance Director to Execute the Insurance Binder. Expenditure:
Not-To-Exceed $369,030 (Non-General Fund).
RECOMMENDATION
Recommendation of the Finance Director that City Council:
1. Approve renewal of automobile physical damage insurance coverage from The Hanover Insurance Group, Inc. through Alliant Insurance Services Inc. of Irvine, CA, at a premium in the amount of $335,482 plus a 10% contingency in the amount of $33,548, for a total not-to-exceed $369,030 for a one-year period beginning July 1, 2025 and ending July 1, 2026; and
2. Authorize Finance Director or designee to execute the insurance binder.
FUNDING
Funding is available in the Self-Insurance Fund’s fiscal year 2025-26 operating budget.
DISCUSSION
Background
The City owns and operates a variety of vehicles including automobiles, transit buses and other motor equipment, valued at over $92,256,433 insurable value. To protect the City against losses associated with collision, vandalism, fire, and theft, the City purchases automobile physical damage insurance that covers repair or replacement costs. Throughout the year Staff coordinates with the City’s insurance broker, Alliant Insurance Services to find the most comprehensive and cost-effective insurance solution for the City. Annually before policy expiration in July, Staff receives insurance premium dues and requests City Council’s approval prior to coverage expiration.
Analysis
In 2021 City Council approved a new auto insurance carrier, Hanover Insurance Inc. (Hanover).
This was advantageous to the City because Hanover provided better coverage, lower and uniform deductibles and lower premium cost. Staff directed the insurance broker to research the market 1 City Council
June 17, 2025
to ensure the City is getting the best rates and the required coverage levels. Based on the research it was confirmed that Hanover continued to provide the same coverage structure at the most competitive rates compared to the market.
The City went through an underwriting review and was approved for a renewal at no reduction in coverage from the previous year as follows:
Insurance Carrier Hanover Insurance Company
A.M. Best Rating A (Excellent)
Standard & Poor’s Rating A (Strong)
Coverages All Risk – Collision, Fire, Theft, Vandalism etc.
Covered Vehicles City’s vehicle schedule as of 5/6/25
Deductible Amount $50,000 per occurrence
Coverage Amount Replacement Cost
(Cost to replace the insured vehicle with a new one of like kind and quality—without deduction for depreciation)
Premium (including
contingency*)
$369,030
* The premium quoted by the insurance carrier is based on the vehicles identified on the City’s vehicle schedule as of 5/6/25. Therefore, Staff is recommending a 10% contingency added to ensure vehicles purchased during the fiscal year can be added to the coverage without delay.
Recommendation
Staff recommends the renewal of automobile physical damage insurance coverage from Hanover Insurance Inc. through Alliant Insurance Services at a premium for a total not-to-exceed $369,030 for a one-year period beginning July 1, 2025 and ending July 1, 2026.
ATTACHMENTS
1. Hanover Proposal
2. Auto Physical Damage Insurance Historical Premium
2 Auto Physical Damage
Insurance Proposal
Presented by Rennetta Poncy
Date Presented June 4, 2025
City of Torrance
Alliant Insurance Services, Inc.
18100 Von Karman Avenue 10th Floor
Irvine, CA 92612
O 949 756 0271
CA License No. 0C36861
www.alliant.com
Attachment 1
3 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 1 Table of Contents
Company Profile ............................................................................................................................................................................................................. 2 Alliant Advantage ........................................................................................................................................................................................................... 3 Your Service Team ........................................................................................................................................................................................................ 4 Named Insured ............................................................................................................................................................................................................... 5 Premium Summary ........................................................................................................................................................................................................ 6 Auto Physical Damage Coverage .................................................................................................................................................................................. 7 Disclosures ................................................................................................................................................................................................................... 14 NY Regulation 194 ................................................................................................................................................................................................ 15 Privacy .................................................................................................................................................................................................................. 15 FATCA: .................................................................................................................................................................................................................. 15 Guarantee Funds .................................................................................................................................................................................................. 16 Claims Reporting: ................................................................................................................................................................................................. 16 Changes and Developments ................................................................................................................................................................................ 16 Certificates / Evidence of Insurance .................................................................................................................................................................... 17 Flood Disclosure .......................................................................................................................................................................................................... 18 Optional Coverages ..................................................................................................................................................................................................... 19 Glossary of Insurance Terms ....................................................................................................................................................................................... 20 Request to Bind Coverage ........................................................................................................................................................................................... 21
4 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 2 Company Profile
Alliant provides risk management, insurance, and consulting services to thousands of clients nationwide, delivering tailored products and services engineered to mitigate risk, improve performance, and promote long -term growth. Our core business includes property and casualty in surance services, middle-market brokerage, employee benefits, and underwriting, each staffed with dedicated industry specialists who understand the unique market dynamics facing their clients.
In addition to our 90-plus year legacy of service and results, Alliant is one of the industry’s fastest-growing organizations. As America’s 10th largest insurance brokerage, we have an active presence in every U.S. market and an extensive arsenal of best -in-class resources and intelligence that moves our clients forward in today’s competitive market climate.
Alliant has a broad reach that covers a wide range of industries, including:
▪ Agriculture
▪ Aviation
▪ Construction
▪ Energy and Marine
▪ Environmental
▪ Healthcare
▪ Financial Institutions
▪ Law
▪ Public Entity
▪ Real Estate
▪ Tribal Nations
▪ And many more
5 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 3 Alliant Advantage
Alliant Competition
90 years of leadership in meeting the insurance needs of businesses and public entities across the US.
✓
National presence with best-in-class resources and expertise. ✓
Privately owned and operated. ✓
Flat management structure with no bureaucracy, empowering senior leadership to take a hands-on approach to client service that expands the entire lifecycle of the relationship.
✓
A full-service insurance agency that addresses all of your risk and insurance needs, including property, casualty, life, and health.
✓
A diverse team of industry specialists who understand the unique needs of your business.
✓
Considerable buying power through more than 40 insurance carriers, enabling for the delivery of the best coverage at the most competitive pricing ✓
State-licensed support staff. ✓
A full-service approach that includes risk management services to help identify hazards and present options.
✓
Workers’ compensation insurance claims management at no additional charge. ✓
6 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 4 Your Service Team
Rennetta Poncy
Senior Vice President
[email protected] Phone: 949 660 8107
Banesa Laird
Vice President
[email protected] Phone: 949 660 8193
Carol Hill
Account Manager Lead
[email protected] Phone: 949 660 8104
7 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 5 Named Insured
City of Torrance
NAMED INSURED DISCLOSURE
▪ Name Insured(s) should match State of Incorporation filing. Inform Alliant if there is a difference or change ▪ The First Named Insured policy status granted includes certain rights and responsibilities. These responsibilities do not apply to other Named Insureds on the policy. Some examples for First Named Insured status include; (1) being designated to act on behalf of all insureds for making policy changes, (2) receiving of correspondence, (3) distributing claim proceeds, and (4) making premium payments
▪ Are ALL entities listed as named insureds? Coverage is not automatically afforded to all entities unless specifically named. Confirm with your producer and service team that all entities to be protected are on the correct policy. Not all entities may be listed on all policies based on coverage line. ▪ Additional named insured is (1) A person or organization, other than the first named insured, identified as an insured in the policy declarations or an addendum to the policy declarations. (2) A person or organization added to a policy after the policy is written with the status of named insured. This entity would have the same rights and responsibilities as an entity named as an insured in the policy declarations (other than those rights and responsibilities reserved to the first named insured). ▪ Applies to Professional Liability, Pollution Liability, Directors & Officers Liability, Employment Practices Liability, Fiduciary Liability policies (this list not all inclusive). Check your Policy language for applicability. These policies provide protection to the Named Insured for claims made against it alleging a covered wrongful act.
8 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 6 Premium Summary
Coverage Expiring Premium* Renewal Premium*
Auto Physical Damage $ 328,632.00 $ 335,482.00
TOTAL $ 328,632.00 $ 335,482.00
*Not Include TRIA premium
Payment Terms
• Premium is due within 30 days of policy inception
• Agency Bill
• Payment Plan: Annual
Options
• None
9 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 7 Auto Physical Damage Coverage
Present Coverage Proposed Coverage
Insurance Company Hanover Insurance Company Hanover Insurance Company A.M. Best Rating A (Excellent), Financial Size Category: XV (Greater than or Equal to $2 Billion)
as of June 22, 2023
A (Excellent), Financial Size Category: XV
(Greater than or Equal to $2 Billion)
as of June 26, 2024
Standard & Poor’s Rating A (Strong) as of August 17, 2023 A (Strong) as of September 4, 2024 California Status Admitted Admitted
Policy/Coverage Term July 1, 2024 to July 1, 2025 July 1, 2025 to July 1, 2026 Policy # IH3H66834303 TBD
Coverage Form • Scheduled Vehicle Physical Damage Floater - IM441-1075 01 09 - “All Risk”
• Contractor's Equipment Coverage –
IM441-1471 01 20 – “All Risk”
• Scheduled Vehicle Physical Damage Floater -
IM441-1075 01 09 - “All Risk”
• Contractor's Equipment Coverage –
IM441-1471 01 20 – “All Risk”
Auto Physical Damage Covered Vehicles As per schedule on file - Schedule Dated: 6/3/24 As per schedule on file - Schedule Dated: 5/6/25
Auto Physical Damage Covered Property Insured’s Vehicles and Vehicles Insured have Leased from Others Under a Written Lease
Contract
Insured’s Vehicles and Vehicles Insured have
Leased from Others Under a Written Lease
Contract
Auto Physical Damage Property Not
Covered
Aircraft or Watercraft; Cargo; Communication
Equipment; Contraband; Leased or Rented
Property; Personal Effects; Mobile Equipment;
Tools; Loaned Property; Suspended, Revoked, or
Invalid License; Waterborne Property
Aircraft or Watercraft; Cargo; Communication
Equipment; Contraband; Leased or Rented
Property; Personal Effects; Mobile Equipment;
Tools; Loaned Property; Suspended, Revoked, or
Invalid License; Waterborne Property
10 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 8 Auto Physical Damage Coverage - Continued
Present Coverage Proposed Coverage
Auto Physical Damage Perils Excluded Civil Authority; Nuclear Hazard; War and Military Action; Contamination or Deterioration; Criminal,
Fraudulent, Dishonest or Illegal Acts; Loss of Use;
Mechanical Breakdown; Missing Property;
Pollutants; Temperature/Humidity; Voluntary
Parting; Wear and Tear; Weight of Load
Civil Authority; Nuclear Hazard; War and Military
Action; Contamination or Deterioration; Criminal,
Fraudulent, Dishonest or Illegal Acts; Loss of Use;
Mechanical Breakdown; Missing Property;
Pollutants; Temperature/Humidity; Voluntary
Parting; Wear and Tear; Weight of Load
Limits
Auto Physical Damage
Catastrophe Limit - Any One Occurrence
for All Vehicles
$ 10,000,000 $ 10,000,000
Coverage Extensions
Additional Debris Removal Expenses $ 50,000 $ 50,000
Supplemental Coverages
Newly Acquired and substitute
Vehicles
$ 1,000,000 $ 1,000,000
Number of Days 365 Days 365 Days
Pollutant Cleanup and Removal $ 25,000 $ 25,000
Towing and Labor Costs $ 25,000 $ 25,000
Contractors Equipment
Contractor's Equipment per Schedule
Submitted
$ 3,349,013 $ 2,773,077
11 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 9 Auto Physical Damage Coverage - Continued
Present Coverage Proposed Coverage
Limits – Continued
Contractors Equipment - Continued
Unscheduled Contractor's Equipment Not Covered Not Covered
Newly Acquired Contractor's Equipment $ 1,000,000 Maximum Limit Per Any One Item $ 1,000,000 Maximum Limit Per Any One Item
Additional Coverages
Business Personal Property $ 25,000 $ 25,000
Continuing Rental or Lease Expense $ 25,000 $ 25,000
Contract Penalty $ 25,000 $ 25,000
Debris Removal 25% of the limit, up to additional $75,000 25% of the limit, up to additional $75,000 Employee Tools and Work Clothing $ 10,000 Any One Occurrence $ 10,000 Any One Occurrence $ 1,000 Any One Item $ 1,000 Any One Item
Engine Emissions Green Coverage $ 5,000 Any One Occurrence $ 5,000 Any One Occurrence $ 10,000 Any One Policy Period $ 10,000 Any One Policy Period Equipment Borrowed from Others $ 50,000 $ 50,000
Equipment Leased and Rented from
Others
$ 50,000 $ 50,000
Equipment Leased or Rented to
Others
$ 25,000 $ 25,000
Equipment Loaned to Others $ 25,000 $ 25,000
Expediting Expense $ 25,000 $ 25,000
Extended Warranties $ 5,000 $ 5,000
12 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 10 Auto Physical Damage Coverage - Continued
Present Coverage Proposed Coverage
Limits – Continued
Contractors Equipment - Continued
False Pretense $ 100,000 $ 100,000
Fire and Police Department Service
Charges
$ 25,000 $ 25,000
Fire Suppression Equipment $ 50,000 $ 50,000
Hauling Property of Others as a
Carrier for Hire
$ 200,000 $ 200,000
Installation or Rigging Property $ 25,000 $ 25,000
Loss Adjustment Expenses $ 5,000 $ 5,000
Pollutant Clean Up and Removal $ 25,000 $ 25,000
Preservation of Property $ 5,000 $ 5,000
Rental Reimbursement $ 10,000 $ 10,000
Rental Reimbursement Waiting
Period
24 Hours 24 Hours
Reward Payments $ 10,000 $ 10,000
Spare Parts and Fuel $ 10,000 $ 10,000
Theft Prevention Devices Deductible
Waiver
$ 25,000 $ 25,000
Waterborne Property $ 250,000 $ 250,000
Deductible
Auto Physical Damage $ 50,000 $ 50,000
Contractors Equipment $ 50,000 Per Occurrence $ 50,000 Per Occurrence 13 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 11 Auto Physical Damage Coverage - Continued
Present Coverage Proposed Coverage
Contractors Equipment Coinsurance Waived Waived
Valuation
Auto Physical Damage Replacement Cost Replacement Cost Contractors Equipment Replacement Value on Items 5 Years or Newer Market Value with Replacement Value on Items 5 Years or Newer
Endorsement & Exclusions
(including but not limited to)
• Privacy Policy Disclosure
• Commercial Marine Reporting Claims
• Notice – Rejection of Terrorism Coverage and
Disclosure of Premium
• Disclosure Pursuant to Terrorism Risk
Insurance Act
• Important Information About Your Insurance
Company
• Contractors Equipment Important Notice to
Policyholders
• Minimum Earned Premium
• Reporting Schedule
• Valuation Changes
• Loss Payable Schedule
• Common Policy Conditions
• California Fraud Statement
• Exclusion of Loss Due to Virus or Bacteria
• Commercial Inland Marine Conditions
• California Changes- Actual cash Value
• California Changes
• • Privacy Policy Disclosure
• Commercial Marine Reporting Claims
• Notice – Rejection of Terrorism Coverage and
Disclosure of Premium
• Disclosure Pursuant to Terrorism Risk
Insurance Act
• Important Information About Your Insurance
Company
• Contractors Equipment Important Notice to
Policyholders
• Minimum Earned Premium
• Reporting Schedule
• Valuation Changes
• Loss Payable Schedule
• Common Policy Conditions
• California Fraud Statement
• Exclusion of Loss Due to Virus or Bacteria
• Commercial Inland Marine Conditions
• California Changes- Actual cash Value
• California Changes
14 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 12 Auto Physical Damage Coverage - Continued
Present Coverage Proposed Coverage
Endorsement & Exclusions - Continued
(including but not limited to)
• California Changes – Cancellation and
Nonrenewal
• Exclusion of Certain Computer-Related Losses
• Certified Act of Terrorism Exclusion (With
Limited Exception)
• Trade or Economic Sanctions Endorsement
• Reporting Conditions Values
• Loss Payable Options
• Endorsement #1 - Scheduled "Vehicles" is
Amended to: $101,812,967
• Endorsement #2 – Amended Agency Address
• California Changes – Cancellation and
Nonrenewal
• Exclusion of Certain Computer-Related Losses
• Certified Act of Terrorism Exclusion (With
Limited Exception)
• Trade or Economic Sanctions Endorsement
• Reporting Conditions Values
• Loss Payable Options
Auto Physical Damage Rating Base $ 101,812,967 Total Insured Value of Vehicles Annual Adjustment required
$ 92,256,433 Total Insured Value of Vehicles
Annual Adjustment required
Rate
Auto Physical Damage $ 0.3125/100 $ 0.353/100
Contractors Equipment $ 0.313 $ 0.354
Total Cost Excluding TRIA $ 317,411.00 Auto Physical Damage Premium $ 10,466.00 Contractors Equipment Premium
$ 755.00 Mid-term Endts’ Premium
$ 328,632.00 Total Cost
$ 325,665.00 Auto Physical Damage Premium
$ 9,817.00 Contractors Equipment Premium
$ 335,482.00 Total Cost
Total Cost Including TRIA Not Applicable $ 325,665.00 Auto Physical Damage Premium $ 9,817.00 Contractors Equipment Premium
$ 9,226.00 TRIA Premium
$ 344,708.00 Total Cost
15 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 13 Auto Physical Damage Coverage - Continued
Present Coverage Proposed Coverage
Minimum Earned Premium $ 5,750.00 $ 6,325.00
Policy Auditable Yes Yes
Quote Valid Until No Longer Applicable July 1, 2025
Binding Conditions No Longer Applicable • A written request to bind coverage • Signed TRIA form
See Disclaimer Page for Important Notices and Acknowledgment
16 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 14 Disclosures
This proposal of insurance is provided as a matter of convenience and information only. All information included in this prop osal, including but not limited to personal and real property values, locations, operations, products, data, automobile schedules, financial data and loss experience, is based on facts and representations supplied to Alliant Insurance Services, Inc. by you. This proposal does not reflect any independent study or investigation by Alliant Insurance Services, Inc. or its agents and employees.
Please be advised that this proposal is also expressly conditioned on there being no material change in the risk between the date of this proposal and the inception date of the proposed policy (including the occurrence of any claim or notice of circumstanc es that may give rise to a claim under any policy which the policy being proposed is a renewal or replacement). In the event of such change of risk, the insurer may , at its sole discretion, modify, or withdraw this proposal, whether or not this offer has already been accepted.
This proposal is not confirmation of insurance and does not add to, extend, amend, change, or alter any coverage in any actua l policy of insurance you may have. All existing policy terms, conditions, exclusions, and limitations apply. For specific informa tion regarding your insurance coverage, please refer to the policy itself. Alliant Insurance Services, Inc. will not be liable for any claims arising from or related to information included in or omitted from this proposal of insurance.
Alliant embraces a policy of transparency with respect to its compensation from insurance transactions. Details on our compensation policy, including the types of income that Alliant may earn on a placement, are available on our website at www.alliant.com. For a copy of our policy or for any inquiries regarding compensation issues pertaining to your account you may also contact us at: Alliant Insurance Services, Inc., Attent ion: General Counsel, 701 B Street, 6th Floor, San Diego, CA 92101.
Analyzing insurers' over -all performance and financial strength is a task that requires specialized skills and in -depth technical understanding of all aspects of insurance company finances and operations. Insurance brokerages such as Alliant Insurance typi cally rely upon rating agencies for this type of market analysis. Both A.M. Best and Standard and Poor's have been industry leaders in this area for many decades, uti lizing a combination of quantitative and qualitative analysis of the information available in formulating their ratings.
A.M. Best has an extensive database of nearly 6,000 Life/Health, Property Casualty and International companies. You can visit them at www.ambest.com. For additional information regarding insurer financial strength ratings visit Standard and Poor's website at www.standardandpoors.com.
Our goal is to procure insurance for you with underwriters possessing the financial strength to perform. Alliant does not, ho wever, guarantee the solvency of any underwriters with which insurance or reinsurance is placed and maintains no responsibility for any loss or damage arising from the financial failure or insolvency of any insurer. We encourage you to review the publicly available information collected to en able you to make an informed decision to accept or reject a par ticular underwriter. To learn more about companies doing business in your state, visit the Department of Insurance website for that state.
17 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 15 NY Regulation 194
Alliant Insurance Services, Inc. is an insurance producer licensed by the State of New York. Insurance producers are authoriz ed by their license to confer with insurance purchasers about the benefits, terms and conditions of insurance contracts; to offer advice concerning the substantive benefits of particular insurance contracts; to sell insurance; and to obtain insurance for purchasers. The role of the producer in any particular transaction typically involves one or more of these activities.
Compensation will be paid to the producer, based on the insurance contract the producer sells. Depending on the insurer(s) and insurance contract(s) the purchaser selects, compensation will be paid by the insurer(s) selling the insurance contract or by ano ther third party. Such compensation may vary depending on a number of factors, including the insurance contract(s) and the insurer(s) the purchaser selects. In some cases, other factors such as the volume of business a producer provides to an insurer or th e profitability of insurance contracts a producer provides to an insurer also may affect compensation.
The insurance purchaser may obtain information about compensation expected to be received by the producer based in whole or i n part on the sale of insurance to the purchaser, and (if applicable) compensation expected to be received based in whole or in part on any alternative quotes presented to the purchaser by the producer, by requesting such information from the producer.
Privacy
At Alliant, one of our top priorities is making sure that the information we have about you is protected and secure. We value our relationship with you and work hard to preserve your privacy and ensure that your preferences are honored. At the same time, t he very nature of our relationship may result in Alliant’s collecting or sharing certain types of information about you in order to provide the products and services you expect from us. Please take the time to read our full Privacy Policy posted at www.alliant.com, and contact your Alliant service team should you have any questions.
Other Disclosures / Disclaimers
FATCA:
The Foreign Account Tax Compliance Act (FATCA) requires the notification of certain financial accounts to the United States Inter nal Revenue Service. Alliant does not provide tax advice so please contact your tax consultant for your obligation regarding FATCA.
18 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 16 Other Disclosures / Disclaimers - Continued
Guarantee Funds
Established by law in every state, guaranty funds are maintained by a state's insurance commissioner to protect policyholders in the event that an insurer becomes insolvent or is unable to meet its financial obligations. If your insurance carrier is identi fied as ‘Non -Admitted’, your policy is not protected by your state’s Guaranty Fund.
Claims Reporting:
Your policy will come with specific claim reporting requirements. Please make sure you understand these obligations. Contact your Alliant Service Team with any questions.
Changes and Developments
It is important that we be advised of any changes in your operations, which may have a bearing on the validity and/or adequac y of your insurance.
The types of changes that concern us include, but are not limited to, those listed below:
▪ Changes in any operations such as expansion to another state, new products, or new applications of existing products. ▪ Travel to any state not previously disclosed.
▪ Permanent operations outside the United States, Canada or Puerto Rico. ▪ Mergers and/or acquisition of new companies and any change in business ownership, including percentages. ▪ Any newly assumed contractual liability, granting of indemnities or hold harmless agreements. ▪ Any changes in existing premises including vacancy, whether temporary or permanent, alterations, demolition, etc. Also, any n ew premises either purchased, constructed or occupied
▪ Circumstances which may require an increased liability insurance limit. ▪ Any changes in fire or theft protection such as the installation of or disconnection of sprinkler systems, burglar alarms, etc. This includes any alterations to the system.
▪ Immediate notification of any changes to a scheduled of equipment, property, vehicles, electronic data processing, etc. ▪ Property of yours that is in transit, unless previously discussed and/or currently insured.
19 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 17 Other Disclosures / Disclaimers - Continued
Certificates / Evidence of Insurance
A Certificate or Evidence is issued as a matter of information only and confers no rights upon the certificate holder. The ce rtificate does not affirmatively or negatively amend, extend or alter the coverage afforded by a policy, nor does it constitute a c ontract between the issuing insurer(s), authorized representative, producer or recipient.
You may have signed contracts, leases or other agreements requiring you to provide this evidence. In those agreements, you ma y assume obligations and/or liability for others (Indemnification, Hold Harmless) and some of the obligations that are not covered by insurance. We recommend that you and your legal counsel review these documents.
In addition to providing a Certificate or Evident of Insurance, you may be required to name your landlord, client or customer on your policy as a loss payee on property insurance or as an additional insured on liability insurance. This is only possible wit h permission of the insurance company, added by endorsement and, in some cases, an additional premium.
By naming the certificate holder as additional insured, there are consequences to your risks and insurance policy including:
▪ Your policy limits are now shared with other entities; their claims involvement may reduce or exhaust your aggregate limit. ▪ Your policy may provide higher limits than required by contract; your full limits can be exposed to the additional insured. ▪ There may be conflicts in defense when your insurer has to defend both you and the additional insured. ▪ An additional insured endorsement will most likely not provide notification of cancellation. Some insurance companies use a “ blanket” additional insured endorsement that provides coverage automatically when it is required in a written contract. Most insura nce companies do not want to be notified of all additional insureds when there is a blanket endorsement on the policy. If a notice of cancella tion is required for the additional insured party, you must notify us immediately and we will request an endorseme nt from your insurance company. There may be an additional premium for adding a notice of cancellation endorsement for an additional insured.
See Request to Bind Coverage page for acknowledgement of all disclaimers and disclosures.
20 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 18 Flood Disclosure
Flooding is a serious threat to both personal and commercial clients. Flooding can happen anywhere, not just zone referred to as high-risk areas (Special Flood Hazard Area). Your Alliant team is ready to explain how it works and the associated costs.
Basic Facts
Congress created the NFIP in 1968 in response to the rising cost of taxpayer -funded disaster relief for flood victims and the increasing amount of damage caused by floods. The NFIP makes federally backed flood insurance available in communities that agree to adopt and enforce floodplain management ordinances to reduce future flood damage. The NFIP is self -supporting for the average historical loss year. This means that unless there is a widespread disaster, operating expenses and flood insurance claims are financed through premiums collected.
Commercial buildings or residential dwellings owned by commercial entities are considered commercial property. All others are residential dwellings
The FEMA Summary for Commercial Property and FEMA Standard Summary of Coverage provides information on the following:
• Types of Flood Insurance Coverage
• What is a Flood- “a General and temporary condition of partial or complete inundation of two or more acres of normally dry land area”… • Deductibles – various options to meet your financial needs • What is Covered and What is Not
• The valuation of the Property – Actual Cash Value or Replacement Cost Additional Information
• Flood Zones
o https://www.fema.gov/flood-zones
• Excess Flood Insurance (contact your Producer for additional information) o Increased limits over the maximum flood limit provided by NFIP FEMA Glossary of Flood Terms
https://www.fema.gov/national-flood-insurance-program/definitions
Please indicate your selection:
☐ I would like to receive a flood quote
☐ I do NOT wish to purchased flood insurance
Signature: Date:
Name Printed / Typed:
Company Name:
21 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 19 Optional Coverages
The following represents a list of insurance coverages that may not be included in this proposal but are optional and may be available with further underwriting information. This list is not inclusive of all coverages and if you have questions contact your Alliant represen tative. If you would like addition quotes please check Yes/No across from the coverage below, sign and return.
Target Coverages
Yes No
CRIME
Employee Dishonesty ☐ ☐
Computer Fraud ☐ ☐
Social Engineering ☐ ☐
Increased Limits ☐ ☐
CYBER RISK ☐ ☐
FLOOD INSURANCE ☐ ☐
MANAGEMENT LIABILITY
Directors & Officers Liability ☐ ☐
Employment Practices Liability ☐ ☐
Fiduciary Liability ☐ ☐
UMBRELLA / EXCESS LIABILITY (Increased Liability Limits) ☐ ☐
Selecting the “Reject All or Accept All” option will override any selections you have made above ☐ Reject All ☐ Accept All for Consideration
Signature of Authorized Insurance Representative Date
Title
Printed / Typed Name
22 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 20 Optional Coverages – Continued
Other Coverage Options
Note some of these coverages may be included with limitations or insured elsewhere. This is a partial listing as you may have additional risks not contemplated here which are unique to your organization. • Business Income/Extra Expense
• Earthquake
• Employed Lawyers
• Employee Benefits Liability
• Equipment Breakdown
• Food Borne Illness
• Foreign Insurance
• Garagekeepers Liability
• Hired Auto Physical Damage
• Kidnap & Ransom
• Law Enforcement Liability
• Media and Publishers Liability
• Network Security / Privacy Liability and Internet Media Liability • Non-Owned & Hired Automobile Liability
• Pollution Liability
• Owned/Non-Owned Aircraft
• Owned Watercraft
• Professional Liability
• Property in Transit
• Property of Others (Clients, Employees, Other)
• Special Events Liability
• Spoilage
• Student Accident
• Volunteer Accidental Death & Dismemberment (AD&D)
• Workers Compensation & Employers Liability
• Workplace Violence
Glossary of Insurance Terms
Below are links to assist you in understanding the insurance terms you may find within your insurance coverages:
http://insurancecommunityuniversity.com/university-resources/insurance-glossary-free https://consumers.ambest.com/content.aspx?rec=261613
http://www.irmi.com/online/insurance-glossary/default.aspx
23 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 21 Request to Bind Coverage
City of Torrance
We have reviewed the proposal and agree to the terms and conditions of the coverages presented. We are requesting coverage to be bound as outlined by coverage line below:
Coverage Line Bind Coverage for:
Auto Physical Damage excluding TRIA ☐
Auto Physical Damage including TRIA ☐
Did you know that Alliant works with premium financing companies? Are you interested in financing your annual premium? Yes, please provide us with a financing quote. No, we do not wish to finance our premium. ☐ ☐
This Authorization to Bind Coverage also acknowledges receipt and review of all disclaimers and disclosures, including exposures used to develop insurance terms, contained within this proposal.
Signature of Authorized Insured Representative Date
Title
Printed / Typed Name
This proposal does not constitute a binder of insurance. Binding is subject to the final carrier approval. The actual terms and conditions of the policy will prevail.
24 Auto Physical Damage Insurance Historical Premium
Policy Year Carrier
Name Coverage Deductible
Information Premium ($)
2022 - 2023 Hanover All risk coverage for
all vehicles owned
and vehicles leased
from others.
$25k deductible $ 192,244
2023 - 2024 Hanover All risk coverage for
all vehicles owned
and vehicles leased
from others.
$25k deductible $240,687
2024 - 2025 Hanover All risk coverage for
all vehicles owned
and vehicles leased
from others.
$50k deductible $328,632
Attachment 2
25