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File #: 21-1266    Version: 1
Type: Agenda Item Status: Approved
File created: 7/27/2021 In control: Board of Supervisors
On agenda: 8/10/2021 Final action: 8/10/2021
Title: Human Resources, Risk Management Division, recommending the Board: 1) Approve Pollution Extended Benefit Period insurance coverage for a total amount of $25,270; and 2) Authorize the Human Resources Department, Risk Management Division, to sign and approve binding documents. FUNDING: Risk Management Internal Service Fund.
Attachments: 1. A - Invoice Pollution ERP BOS Rcvd 8-5-21
Related files: 21-1065
Title
Human Resources, Risk Management Division, recommending the Board:
1) Approve Pollution Extended Benefit Period insurance coverage for a total amount of $25,270; and
2) Authorize the Human Resources Department, Risk Management Division, to sign and approve binding documents.

FUNDING: Risk Management Internal Service Fund.

Body
DISCUSSION/BACKGROUND
The Pollution Program provides first- and third-party coverage for bodily injury, property damage, and clean-up costs caused by pollution conditions at scheduled owned or leased sites or arising from certain operations.

Pollution/Remediation Legal Liability policies are written on a “Claims Made and Reported” coverage form, which means that all claims and all known incidents that could give rise to a claim must be reported to the company during the policy period or back to its retroactive date an extended reporting period (ERP), also known as tail coverage, in order for coverage to apply. This is important in that the County’s Prism partners have had some unfortunate circumstances in the past where incidents or claims that would likely have otherwise been covered, however were not, because the reporting requirement of known circumstances or incidents was overlooked.

Alliant sent a communication on April 27, 2021 notifying members that the current carrier, Illinois Union (Chubb), was non-renewing. With this change, came a loss of retroactive coverage, effective July 1, 2021, which triggered action required by each member to report any known pollution incidents. The change in the retroactive date removes coverage for any known and unknown conditions and provides new conditions coverage only for claims involving mold, restoration costs and legionella and sewage backup claims.

On July 20, 2021 with Legistar item 21-1065, the Board approved a renewal policy with Ironshore totaling $15,904. The renewal carrier, Ironshore, excludes all pollution conditions that occurred prior to the renewal policy’s incept...

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