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Board of Trustees Meeting July 8, 2008 |
Agenda Item: New Business
Board Approval to renew AvQuest Insurance Policy for non-owned commercial aircraft in an amount not to exceed $13,000.00 from the Fund #6000.01.205 Property and Liability Insurance.
Background:
Non-owned aircraft insurance coverage is not currently offered through Vector Control Joint Powers Agency (VCJPA). The Coachella Valley Mosquito and Vector Control District, as most districts in VCJPA, hires an outside company to do aerial application of control products and, as part of that agreement, requires the contractor to have specific limits and types of coverage. At the request of VCJPA, AVQuest developed a program to protect only the interests of the districts.
The AVQuest Insurance renewal proposal for the coming fiscal year is currently in a bid process. As in past years the coverage requests an additional chemical liability of $1,000,000 per occurrence, non-chemical liability of $1,000,000 per occurrence, endorsements for Acts of Terrorism per the Terrorism Risk Insurance Act (TRIA) of 2002, and extension of the policy to cover residential spraying.
Discussions with the Insurance Broker indicate that costs for renewal should not increase over last years premium by more than 10%.
Staff Recommendation:
Staff recommends approval of renewal of Insurance Policy for non-owned commercial aircraft coverage with AvQuest.
Fiscal Impact:
Current funds available from Fund #6000.01.205, Property and Liability Insurance, is $99,211 which is 100% of the budgeted amount for this line item. This expenditure is approximately 13% of the available balance.