1 EASTERN MUNICIPAL WATER DISTRICT Risk Management and Insurance Program Doug Hefley Director of Safety, Risk and Emergency Management June 17, 2015

2 Overview Risk Management and Insurance Consultant utilized to: o Review current broker services and insurance coverages o Oversee broker and insurance program selection process o Audit workers’ compensation third party administrator program o Recommendations for program enhancement

3 Current Insurance Coverages Coverages o Liability Package General Liability - $1,000,000 Occurrence/$3,000,000 Aggregate Public Officials and Management Liability - $1,000,000 Occurrence/$3,000,000 Aggregate Cyber and Privacy Crisis Management - $1,000,000 Each Event/$250,000 Each Privacy Event Self-Insured Retention - $1,000,000 o Commercial Auto Liability - $1,000,000 Occurrence/No Aggregate Liability Bodily Injury and Property Damage Hired Auto Physical Damage Deductible - $10,000 o Excess Liability - $10,000,000 Covers Liability Package and Auto

4 Current Insurance Coverages Coverages continued o Property - $291,708, Scheduled Facilities/$250,000 All Other Facilities Flood – Limited to $1,000,000 Deductible - $15,000 o Equipment Breakdown (Boiler and Machinery) - $100,000,000 Deductible - $15,000 o Excess Workers’ Compensation Self Insured Retention $750,000 Coverage Limits $10,000,000 Coverage through Safety National Casualty Corporation

5 Oversee Broker and Insurance Selection Test the insurance market Request for Proposal issued Responses evaluated Interviews conducted The Goodwin Insurance Agency selected Glatfelter Public Practice selected Procurement of an additional $10,000,000 of Excess Liability

6 Workers’ Compensation TPA Consultant audit of TPA Recommendations o Program and services cost savings opportunities o Enhance Claim Handling Guidelines o Additional training opportunities Request for Proposals for Workers’ Compensation Third Party Administrator Services

7 Recommendations for Program Enhancement Consultant recommendations to be implemented in FY o Examination of insurance verification process o Obtain Earthquake hazard analysis and consider loss strategies o IT and SCADA Vulnerability Assessment and consider purchasing coverages o Adopt Risk Management Philosophy and Policy Statement

8 Recommendations for Board Consideration Approve and authorize the following: Execution by the General Manager, of a Brokers’ Agreement covering a two-year term with two one-year optional extensions with The Goodwin Insurance Agency; Procurement of General Liability, Commercial Auto, Excess Liability, Additional Excess Liability, Property, and Equipment Breakdown Insurance Packages Glatfelter Public Practice in the amount of $951,330; Procurement of Excess Workers’ Compensation Insurance from Safety National Casualty Corporation in the amount of $185,047; Appropriation of $1,136,377 for all District coverage, including all brokers’ commissions and fees; and Authorize the General Manager, to execute agreements within the established authority level to implement the recommendations made by G2 Risk Consulting

9 Contact Information EASTERN MUNICIPAL WATER DISTRICT Doug Hefley Director of Safety, Risk and Emergency Management (951) ext