Metro - File #: 2022-0021

• File #: 2022-0021
• Type: Program
• Status: Passed
• File created: 1/14/2022
• In control: Board of Directors - Regular Board Meeting
• On agenda: 4/28/2022
• Final action: 4/28/2022
• Title: AUTHORIZE the Chief Executive Officer to negotiate and purchase All Risk Property and Boiler and Machinery insurance policies for all property at increased policy limits at a not to exceed price of $5.5 million for the 12-month period May 10, 2022 through May 10, 2023.
• Sponsors: Finance, Budget and Audit Committee
• Indexes: Budget, Budgeting, Expo Line Operating Project (Project), General Overhead (Project), Gold Line Operations (Project), Insurance, Los Angeles Union Station, Maintenance practices, Metro Rail A Line, Metro Rail B Line, Metro Rail C Line, Metro Rail E Line, Metro Rail L Line, Non-revenue Vehicles, Operations and Maintenance, Operations Maintenance (Project), Operations Transportation (Project), Owned Property (Project), Program, Project management, Purchasing, Rail Operations - Blue Line (Project), Rail Operations - Green Line (Project), Rail Operations - Red Line (Project), Rolling stock, Station operations, Terrorism, Transit System, Union Station Property Management (Project), Westchester

Date	Action By	Action	Result
4/28/2022	Board of Directors - Regular Board Meeting
4/20/2022	Finance, Budget and Audit Committee

Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
APRIL 20, 2022

Subject
SUBJECT: PROPERTY INSURANCE PROGRAM

Action
ACTION: APPROVE RECOMMENDATION

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer to negotiate and purchase All Risk Property and Boiler and Machinery insurance policies for all property at increased policy limits at a not to exceed price of $5.5 million for the 12-month period May 10, 2022 through May 10, 2023.

Issue
ISSUE

The All Risk Property and Boiler and Machinery insurance policies expire on May 10, 2022.

Background
BACKGROUND

Our insurance broker, USI Insurance Services ("USI") is responsible for marketing the property insurance program to qualified insurance carriers. Quotes are currently being received from carriers with A.M. Best ratings indicative of acceptable financial soundness and ability to pay claims. The premium indications below are based upon current market expectations. Final pricing, however, is not available until approximately 30 days prior to binding coverage.

Metro established a program of Excess Commercial Property Insurance to protect against insured losses. Each year, Risk Management meets with USI to prepare for the upcoming marketing process and secure the data required to approach underwriters and obtain the most competitive coverage and pricing available.

Initial discussions begin in the first quarter of the fiscal year through an evaluation of market conditions to determine the availability of coverages and what levels of premium are indicated. Once established, an annual stewardship meeting is conducted in September to review what data will be required, including new infrastructure, such as rolling stock (bus, rail and non-revenue vehicles), real property (buildings and facilities), business personal property (equipment, furniture) and newly completed projects as each are accepted by the agency. Risk Management further obtains status data including targeted completion ...