Workers' Compensation Excess InsuranceTHE CITY OF Dubuque
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DUB E ""-~"~'~~~
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Masterpiece on the Mississippi
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Workers' Compensation Excess Insurance
DATE: June 26, 2009
After Cottingham and Butler received quotes on behalf of the City, Personnel Director
Randy Peck is recommending approval of the renewal rate of $.12 per $100 of payroll
submitted by Safety National and to increase the self-insured retention (each accident)
from $450,000 to $500,000 effective July 1, 2009 through June 30, 2010, for the
workers' compensation excess insurance.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mi ael C. Van Milligen
MCVM:Iw
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Randy Peck, Personnel Director
THE CITY OF DUbUgUe
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~T T~ E Ae-AmedcaC~y
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Masterpiece an the Mississippi
2007
TO: Michael C. Van Milligen, City Manage
FROM: Randy Peck, Personnel Manager
SUBJECT: Workers' Compensation Excess Insurance
DATE: June 22, 2009
Cottingham and Butler presented the workers' compensation excess insurance renewal
options for coverage effective July 1, 2009, I have attached the renewal proposal for
your review. Quotes were obtained from our current carrier, Safety National, Midwest
Employers Casualty Company, ACE and AIG. Safety National presented the most
competitive proposal for the existing coverages. Safety National proposes a rate of
$.12 per $100 of payroll effective July 1, 2009 through June 30, 2010. The renewal
proposal provides for an estimated annual premium of $27,125 for Fiscal Year 2010.
The current annual premium is $25,083. The increase is related to the increase in our
payroll.
Safety National presented a proposal to increase the self-insured retention (each
accident) from $450,000 to $500,000. Increasing the retention amount would decrease
the premium by $1,170. The estimated annual premium would be $25,995. Safety
National also presented a proposal to include sworn police officers and firefighters
medical claims under the self-insured retention. They presented a quote based on
retention amounts of $450,000, $500,000 and $600,000. If we were to include sworn
police officers and firefighters medical claims under the retention limit, the premium
would increase between $13,000 and $54,000. Finance Director Ken TeKippe and I
have discussed whether there would be any financial advantage to include sworn police
officers and firefighters medical claims under the retention limit. Since we would be
liable for all medical expenses up to the retention amount, we recommend to continue
excluding sworn police officers and firefighter medical claims from the retention limit.
Ken and I recommend that we continue with Safety National as our excess workers'
compensation carrier effective July 1, 2009 through June 30, 2010. We also
recommend increasing the self-insured retention (each accident) from $450,000 to
$500,000 effective July 1, 2009. Cottingham and Butler has issued a binder to make
sure that there would be no lapse in coverage on July 1, 2009.
The requested action is for the City Council to pass a motion approving the renewal rate
of $.12 per $100 of payroll submitted by Safety National and to increase the self-insured
retention (each accident) from $450,000 to $500,000 effective July 1, 2009 through
June 30, 2010, for the workers' compensation excess insurance.
If you have any questions, please feel free to call.
RP:tlb
cc: Ken TeKippe, Finance Director
Jenny Larson, Budget Director
cess workers c.ompensat~on Insurance rt s
for
CITY OF DUBUQUE
Presented by:
Eric Larsen, Sales Executt've
Policy Period:
2009-2010
This is a convenient coverage summary not a legal contract. This proposal is provided to facilitate your understanding of your insurance program.
Please refer to the actual policies for specific terms conditions limitations and exclusions thnt will govern in the event of a loss. Specimen copies of
all policies are available for review prior to the binding of covernge.
In evaluating your exposures to loss, we hove been dependent upon information provided by you. If' there are any other areas that need to be
evaluated prior to binding of covernge, please bring these areus to our attention. Should any of your exposures change after coverage is bound, such
as your beginning new operations, hiring employees in new states, barying udditional property, etc., please !et us know so proper coverage can be
discussed.
Cottingham & Butler, /nc. is compensated through fees and/or commissions for services provided to clients related to managing, reducing, and
transferring risk. In addition, Cortingham & Butler, Inc. may enter into agreements with some insurance carriers through which it is compensated
for services provided on behalf of the carriers. This compensation is based on several factors such as overall volume, growth, and in some cases
profitability of the aggregate premium placed with such carriers. Cotringham & Butler subsidiaries may also receive compensation for services such
ns uti[izrttiort review, case management and claims handling performed directly for the carriers.
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Cottingham ~ Butler
C&B Insurance ~ SISCO ~ HealthCorp ~ Safety Management
Established 1887
CITY OF
LE OF NTE TS
Cottingham & Butler -Who We Are
Assurex Global
Service Team
Premium Summary and Payment Options
Excess Workers' Compensation
Appendix A - A.M. Best Rating & Analysis
Additional Coverages
Insurability of Punitive Damages
Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review.
Adequate lead time required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48
hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of S business days.
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CITY OF DUBUQUE
OUR MISSION
To PARTNER with our clients to PROTECT their most valuable assess
and to BUILD an exceptional company of passionate insurance professionals.
Cottingham & Butler is a privately held firm headquartered in Dubuque, Iowa with an
expanding set of office locations. Our regional offices are located throughout the United
States to provide our clients with the best service possible. We provide the high-touch
service you would expect from a local insurance broker combined with the high-end
expertise you need in the increasingly complex world of employee benefits and risk
management. As an owner of Assurex Global, the world's largest association of privately
held insurance brokers, we can help you handle almost any insurance-related problem
you may have!
We offer a complete set of employee benefits and risk management services including:
• Brokerage Expertise and Accountability
• Safety & Loss Control Consulting Services
• Claims Management
• Captive & Program Management
• International & Specialty Risks
• Employee Benefits Brokerage 8t: Consulting
• Medical Management Services
• Wellness & Disease Management Solutions
• Personal Insurance & Retirement Products
Our business model is built around three simple tenets:
1. Sit on the same side of the desk with your client.
2. Focus on the total cost of risk, not just insurance costs.
3. Deliver what we design.
This approach has served us well as evidenced by some highlights from our rich heritage:
• In business since 1887
• 54~' largest insurance broker in the United States
• Over 2,000 clients
• Business in over 40 states
• Over 13.5% average organic revenue growth per year over the last 20 years
• National Underwriter Commercial Insurance AGENCY OF THE YEAR 2007
Our plan for the future is simple: we aim to continue providing the very best in insurance solutions and services
for our clients through our team of highly motivated and talented insurance professionals.
Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review.
Adequate lead time required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48
hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of 5 business days.
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CITY OF DUBUQUE
Assurex Global is the world's largest privately held risk management and commercial insurance
brokerage group. Employing more than 20,000 insurance professionals on six continents, the 130-plus
independent insurance brokers who constitute Assurex Global generate annual premiums in excess of
$19 billion.
Founded in 1954, Columbus, Ohio-based Assurex Global is a unique international corporation that
marshals the experience, expertise, products and services of the world's most successful and respected
independent risk management, commercial insurance and employee benefits professionals.
Cottingham & Butler has been a member of Assurer Global since 1986.
PARTNER SELECTION
Only the best independent agency in each market area is invited to become an Assurex Global Partner.
Each is carefully selected on the basis of its premier market position, history of growth, quality,
breadth of services, integrity, and commitment to serve the clients of all Assurer Global Partners.
Assurex Global Partners meet rigorous fmancial and leadership standards to be admitted into the
organization. They are re-evaluated every 3 years.
PARTNER REVIEW:
Every Assurex Global Partner periodically undergoes an in-depth evaluation to ensure they continue to
meet stringent qualifications. Factors considered are growth, creativity and their ability to provide the
highest level of professional services.
A hallmark of Assurex Global is the fact that all Partners, regardless of city and country, are
committed to providing an immediate and professional response to other Partners' requests for advice
on local insurance conditions, assistance with local coverage's, and other local services, including
claims and loss control.
Worldwide, the sun never sets on Assurer Global. With Assurer Global, you enjoy access to the most
experienced local brokers, delivering the best insurance products and services in every country of the
world.
Wherever clients have assets at risk, hands-on advice and services are available from local Assurex
Global brokers familiar with the regulatory environment and customs of each country.
Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the pohcy u available for renew.
Adequate lead time required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48
hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of 5 business days.
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CITY OF DUBi~QUE
Sales Executive Eric Larsen Phone: 563-587-5602
Cell: 563-580-1831
Eric.Larsen @ cb-sisco.com
Account Administrator Michelle Sommers Phone: 563-587-5387
Michelle.Sommers @ cb-sisco.com
Account Service Representative Jill Kalb Phone: 563-587-5169
& Certificate Requests Jill.Kalb@cb-sisco.com
Brokerage Claims Representative Sheri Risley Phone: 563-587-5245
Sheri.Risley @ cb-sisco.com
After Hours Emergency Claim Reporting:
Direct to Insurance Companies:
Go to cb-sisco.com; click on report a claim; under #2 click on the link; if yes "click here" to see a list
of carrier telephone numbers
PO Box 28 800 Main Street
Dubuque, IA 52004-0028 Dubuque, IA 52001
(563) 583-7344 ~ • (800) 793-5235
www.cb-sisco.com
Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review.
Adequate lead time required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48
hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of 5 business days.
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CITY OF DUBUQUE
PREMIUM SUMMARY
2008/2009 2009/2010
COVERAGES:
Excess Workers' Compensation $25,083 $27,125
TOTAL ESTrniATED ANNUAL PREMIUM $25,083 $27,125
PAYMENT TERMS'
Full Annual Premium Due. Agency Billed.
PREMIUM PAYMENT POLICY
AGENCY BILLED POLICIES
During the policy period, if cancellation of a policy(s) results due to non-payment of premium, coverage
will be reinstated only twice. If a policy(s) is cancelled a third time, Cottingham & Butler, Inc. will not
reinstate coverage or present a renewal offer on any coverages.
FINANCED AND DII2ECT BILLED POLICIES
If cancellation and reinstatement of a policy(s) takes place more than twice during the policy period,
Cottingham & Butler, Inc. will not present a renewal offer on any coverages.
Note: Higher limits may be available. Please let us know if you would like a quote for higher limits.
In evaluating your exposures to loss, we have been dependent upon information provided by you. If there are any other
areas that need to be evaluated prior to binding of coverage, please bring these areas to our attention. Should any of
your exposures change after coverage is bound, such as your beginning new operations, hiring employees in new
states, buying additional property, etc., please let us know so proper coverage can be discussed.
Cottingham & Butler, Inc. is compensated through fees and/or commissions for services provided to clients related to
managing, reducing, and transferring risk. In addition, Cottingham & Butler, Inc. may enter into agreements with
some insurance carriers through which it is compensated for services provided on behalf of the carriers. This
compensation is based on several factors such as overall volume, growth, and in some cases profitability of the
aggregate premium placed with such carriers. Cottingham & Butler subsidiaries may also receive compensation for
services such as utilization review, case mana ement and claims handlin a ormed directl or the carriers.
Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review.
Adequate lead time required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48
hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of 5 business days.
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CITY OF DUBUQUE
j WORKERS' COMPENSATION COVERAGE SPECIFICATIONS
F...
2008/2009
2009/2010
2009/2010
{ Company: Safety National Safety National Safety National
A.M. Best Rating: A, X A, X A, X
Status: Admitted Admitted Admitted
Rating and Status as of.• 06/05/2009 06/05/2009 06/05/2009
Limits:
Workers' Compensation (each accident) Statutory Statutory Statutory
Employer's Liability (each accident) $1,000,000 $1,000,000 $1,000,000
Self-Insured Retention (each accident) $450,000 $450,000 $500,000
Aggregate Protection None None None
Estimated Payroll $20,902,496 $22,604,201 $22,604,201
Rate per $100 of Payroll .12 .12 .115
Policy subject to Annual Audit: Yes Yes Yes
TOTAL ESTIMATED ANI~TIJAL PREMIUM $25,083 $27,125 $25,995
Minimum Premium $25,083 $27,125 $25,995
Note: Higher limits may be available. Please let us know if you would like a quote for higher limits.
Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review.
Adequate lead time required to secure coverage. Adequate lead time will vary by lirse of coverage and company, but generally is a minimum of 48
hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of s business days.
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CITY OF DUBUQUE
FOR RS OMPEN ~I~l~~OVER~E~P-EC~II~'~~TT-O~C•O~NTIlQIIED
OPTIONS -INCLUDING POLICE & FIRE:
2009/2010 2009/2010
Company: Safety National Safety National
A.M. Best Rating: A, X A, X
Status:
Rating and Status as of.•
Limits:
Admitted Admitted
06/05/2009 06/05/2009
2009/2010 2009/2010
Safety National Safety National
A, X A, X
Admitted Admitted
06/05/2009 06/05/2009
Workers' Compensation (each accident) Statutory Statutory Statutory Statutory
Employer's Liability (each accident) $1,000,000 $1,000,000 $1,000,000 $1,000,000
Self-Insured Retention (each accident)
All Other
Police/Fire
$450,000 $500,000 $450,000 $500,000
$600,000 $600,000 $450,000 $500,000
Aggregate Protection None None None None
Estimated Payroll $33,993,351 $33,993,351 $33,993,351 $33,993,351
Rate per $100 of Payroll .12 .115 _ .24 .2124
Policy subject to Annual Audit: Yes Yes Yes Yes
TOT~,I. ESTIMATED AivNtrai. PREMIUM $40,792 $39,092 $81,584 $72,202
Minimum Premium $40,792 $39,902 $81,584 $72,202
Note: Higher limits may be available. Please let us know if you would like a quote for higher limits.
Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review.
Adequate lead Time required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48
hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of 5 business days.
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CITY OF DUBUQUE
WORKERS' COMPENSATION COVERAGE SPECIFICATIONS -CONTINUED
Rating Basis:
IA 0106 Tree Prunin $173,601
IA 3724 Millwri ht Work NOC & Drivers $123,670
IA 5192 Parkin Meters Install Service or Re air $116,583
IA 5506 Street or Road Construction Pavin /Re avin $876,559
IA 7382 Bus Co-All Other Em to ees & Drivers $945,005
IA 7403 Aircraft of Helico ter O s: Air Carrier-Scheduled or Su lemental $375,504
IA 7403 Aircraft of Helico ter O s: Sales or Service A enc All Other Em to ees Included Above
IA 7520 Waterworks O eration & SD $1,215,555
IA 7580 Sewa a Dis osal Plan O eration & Drivers $1,129,381
IA 8385 Business Co-Cara e Em to ees $73,058
IA 8392 Automobile Stora a Gara a or Parkin Station & Drivers $613,778
IA 8810 Clerical Office Em to ees $9,426,795
IA 8810 Public Libr Museum Professional Em to ees Included Above
IA 8831 Hos ital Veterin & Drivers $64,517
IA 8835 Public Health Nursin Association-All Em to ees $108,971
IA 9015 Buildin NOC-O erated b Owner $654,711
IA 9015 Swimmin Pool Public O eration Included Above
IA 9016 Skatin Rink O s & Drivers $0
IA 9060 Club-Coup $253,817
IA 9101 All Other Em to ees $95,462
IA 9182 Park NOC-All Other Em to ees & Drivers $1,451,683
IA 9154 Theater NOC-All Other Em to ees $0
IA 9402 Street Cleanin & Drivers $472,926
IA 9410 Munici al, Townshi ,Coun or State Em to ees $2,844,049
IA 9419 Munici al, Townshi Coun or State Em to ees NOC Included Above
IA 9403 Garba a and Refuse Collectin in Containers & Dum in $1,588,576
Total Estunated Annual Pa oll $22,604 Ol
TO ADD POLICEMEN & FIREMEN:
IA 7720 Police O cers $6, 059,122
IA 7710 Fire hters $5,330,028
Total Estimated Annual Pa roll $33,993,351
Please refer to the policy for speci, fc terms, conditions, [imitations, and exclusions. A specimen copy of the policy is available for review.
Adequate lead lime required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48
hours. Adequate lead time for Assign:ed Risk policies wil~l+vary by state, but generally is a minimum of 5 business days.
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CITY OF DUBUQUE
- W O~t1~R~rC-01~IPEN~~TI01~T~-O ~PE-CIFrC-A~ON~ _ ~O
Exclusions include but are not limited to the following:
~ Punitive Damages
~ Injury to employees knowingly illegally employed
~ Intentional Injury
~ Serious and willful misconduct of the employer including intentional acts or omissions resulting in an injury
W Injuries outside of U.S., its territories and possessions, and Canada
~ Employment Related Practices
W Crew Members of any vessel
~ Fines or Penalties
~ Damages to any employee under the USL&H Act, the Federal Employer's Liability Act, or Migrant and Seasonal
Agricultural Worker Protection Act.
W Monopolistic States are not covered: North Dakota, Ohio, Washington, West Virginia, and Wyoming
W Failure to comply with any health, safety, or notification law or regulation
W Firefighter and Policy Officer Employees (see option for Medical Benefits Only)
~ Relating to any employer owned, leased, or regulazly chartered aircraft
Other exclusions and coverage limitations apply.
Additional Options:
® Voluntary Compensation
^ United States Longshore & Hazborman's Act (USL&H)
^ Jones Act
^ Alternate Employer
^ Scheduled Waivers of Subrogation
^ Blanket Waiver of Subrogation
® Foreign Voluntary Compensation and Employer's Liability Coverage
^ Repatriation
^ Endemic Disease
^ Stop Gap (Coverage for Monopolistic States)
Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review.
Adequate lead lime required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48
hours. Adequate lead time far Assigned Risk policies wi~ll^+.vary by state, but generally is a minimum of 5 business days.
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~. CITY OF DUBUQUE
A.M. BEST RATING & ANALYSIS
The objective of Best's rating system is to provide an opinion as to an insurer's financial strength and ability to meet
ongoing obligations to policyholders. A.M. Best's opinions are derived from an evaluation of a company's balance sheet
strength, operating performance and business profile as compared with Best's quantitative and qualitative standards.
Level Cate or Level Cate o Level Cate~o
A++, A+ Su erior B, B- Fair D Poor
A, A- Excellent C++, C+ Mar final E Under Re ulato Su ervision
B++, B+ Ve Good C, C- Weak F In Li uidation
S Ratin Sus ended
Financial Size Categories
(In $000 of Reported Policyholders' Surplus Plus Conditional Reserve Funds)
Assigned to all companies and reflects their size based on their capital, surplus and conditional reserve funds in millions of
US dollars, using the scale below.
To enhance the usefulness of our ratings, A.M. Best assigns each company a Financial Size Category (FSC). The FSC is
designed to provide the subscriber with a convenient indicator of the size of a company in terms of its statutory surplus and
related accounts. Many insurance buyers only want to consider buying insurance coverage from companies that they
believe have sufficient financial capacity to provide the necessary policy limits to insure their risks. Although companies
utilize reinsurance to reduce their net retention on the policy limits they underwrite, many buyers still feel more
comfortable buying from companies perceived to have greater financial capacity.
FSC I Up to 1,000 FSC IX 250,000 to 500,000
FSC II 1,000 to 2,000 FSC X 500,000 to 750,000
FSC III 2,000 to 5,000 FSC XI 750,000 to 1,000,000
FSC N 5,000 to 10,000 FSC XII 1,000,000 to 1,250,000
FSC V 10,000 to 25,000 FSC XIII 1,250,000 to 1,500,000
FSC VI 25,000 to 50,000 FSC XIV 1,500,000 to 2,000,000
FSC VII 50,000 to 100,000 FSC XV 2,000,000 or more
FSC VIII 100,000 to 250,000
Best's Insurance Reports, published annually by A.M. Best Company, Inc., presents comprehensive reports on the financial
position, history, and transactions of insurance companies operating in the United States and Canada. Companies licensed
to do business in the United States are assigned a Best's Rating which attempts to measure the comparative position of the
company or association against industry averages.
Copies of the Best's Insurance Reports on the insurance companies aze available upon your request.
Cottingham & Butler uses A.M. Best & Co.'s rating services to evaluate the financial condition of insurers whose policies
we propose to deliver. The rating of the carrier and the year of publication of that rating are indicated. Cottingham &
Butter makes no representations and wan•anties concerning the solvency of any carrier, nor does it make any representation
or warranty concerning the rating of the carrier which may change.
j ADIVIITTED/NON-ADMITTED/GUARANTY FUND DATA
The term admitted or authorized carrier refers to an insurer, which has been approved (authorized) by a given state's
~ insurance department to write business within that state. An admitted or authorized carrier is protected by the State
f- Guaranty Fund should an insolvency (bankruptcy) of the insurer occur. Anon-admitted or unauthorized carrier in a given
state is not protected by the Guazanty Fund in that state should the carrier become insolvent.
It is important to keep in mind that an admitted or non-admitted status as well as the resulting applicability of any state's
guazanty fund aze issues only if/when a carrier is declared insolvent.
Please refer to the po&cy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review.
Adequate lead time required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48
hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of S business days.
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CITY OF DUBUQUE
DDITIONAL OVERAGES
Additional coverages that may be available but not limited to the following:
Auto Liability
Auto Physical Damage
Uninsured/tTnderinsured Motorist Coverage
General Liability
Employee Benefits Liability
Garage Liability
Garagekeepers
Property
Equipment Breakdown
Flood
Earthquake
Directors & Officers Liability
Crime/Employee Dishonesty
Fiduciary Liability - (The responsibility on trustees, employers, fiduciaries, professional administrators, and the
plan itself with respect to errors and omissions in the administration of employee benefit programs as
imposed by the Employee Retirement Income Security Act of 1974)
Kidnap & Ransom
Higher Liability Limits
Higher Umbrella Limits
Deductible Options
Pollution
Employment Practices Liability - (Wrongful termination, sexual harassment, sexual discrimination, etc.)
Business Income
Extra Expense
Professional Errors and Omissions
Internet Liability
Product Recall
Foreign/International Coverages
If you are interested in pricing for any of the above coverages or any other coverages, please contact our office.
In evaluating yoltr exposures to loss, we have been dependent upon information provided by you. If there are any other
areas that need to be evaluated prior to binding of coverage, please bring these areas to our attention. Should any of
your exposures change af7er coverage is bound, such as your beginning new operations, hiring employees in new
States buying additional property etc please let us know so proper coverage can be discussed.
Please refer to the policy for specific tenns, conditions, limitations, and exclusions. A specimen copy of the policy is available for review.
Adequate lead lime required to secure coverage. Adequate lead time will vary by line of coverage and compa~:y, but generally is a minimum of 48
hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of 5 business days.
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COMPANY NAME
INSURABILITY OF PUNITIVE DAMAGES PER STATEI
Punitive Damages are Insurable:
Alabama Alaska Arizona Delaware Georgia Hawaii Idaho
Iowa Louisiana Michigan Mississippi Montana New Hampshire New Mexico
Puerto Rico South Carolina Vermont Virgin Islands Washington Wisconsin Wyoming
Punitive Damages are NOT Insurable if directly assessed for an intentional wrong:
Arkansas Dist. Columbia Nevada North Cazolina North Dakota Oregon Tennessee
Texas West Virginia
Punitive Damages are NOT Insurable unless awarded out-of-state or vicariously assessed:
California
Punitive Damages are NOT Insurable if directly assessed and not statutorily imposed:
Connecticut
Punitive Damages are NOT Insurable if directly assessed:
Florida Illinois Indiana Kansas Missouri Ohio Pennsylvania
Rhode Island South Dakota
Punitive Damages are NOT Insurable if assessed for an intentional wrong:
Kentucky
Punitive Damages are NOT Insurable unless awarded out-of-state:
New York
Punitive Damages are NOT Insurable unless vicariously assessed for ne~liQence:
Oklahoma
Punitive Damages. are_NOT Insurable unless assessed for Bodily Iniurv caused by unintentional conduct:
Virginia
Punitive Damages are NOT Insurable:
Colorado Maine Massachusetts Minnesota Nebraska New Jersey Utah
t Information obtained from International Risk Management Institute, Inc. (IRMI), as of November 2006
Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review.
Adequate lead time required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minunum of 48 hours. Adequate lead
time for Assigned Risk policies will vary by state, but generally is a minimum of 5 business days.
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