Property/Builders’ Risk Insurance Program

2. Property/Builders’ Risk Insurance Program Informational Webinar Paul T. Williams, Jr. President November 7, 2013

3. Webinar Presenters • Ann Dodson- Assistant Director Risk Management and Safety • Patricia Gallagher- Risk Management Specialist • Michele Bryant- Risk Management and Safety Specialist

4. Agenda • Who is DASNY? • Overview of the Property/Builders’ Risk Insurance Program • Who is insured for Permanent Property • Who is insured for Builders’ Risk • Program Structure • Broker Services • Property Claims Services • Administrative Services • Loss Control Services • Broker Qualifications • Selection Process

5. DASNY Serves Two Primary Functions • Finance– for private and public clients • Construction– for public clients only, including: • State University of New York (SUNY) • City University of New York (CUNY) • NYC Health & Hospitals Corporations and Office of County Medical Examiner • NYC Court Facilities and NYS Office of Court Administration • NYS Departments of Health and Education • NYS Office of Mental Health and Office for People with Developmental Disabilities • Special Acts School Districts • This list is not fully exclusive, for additional information visit DASNY website at www.DASNY.org

6. Permanent Property Coverage • Permanent Property- 15.9 Billion • DASNY Offices- $52 Mil • State University of New York- $4.7 Bil • City University of New York-$10 Bil • New York State Department of Health $280 Mil • Special Acts Schools-$75 Mil • New York City Court- $33 Mil • Miscellaneous locations- $112 Mil Figures have been rounded .

7. Builders’ Risk Coverage • Builders’ Risk- 1.2 Billion • New York City Courts-$197 Mil • City University of New York-$587 Mil • New York State Department of Health-$847K • New York City Health and Hospitals-$199 Mil • New York State Department of Education-$637K • State University of New York-$270 Mil Figures have been rounded

8. Program Structure • Property - $750,000,000 per occurrence • Builders’ Risk - $75,000,000 per occurrence • Equipment Breakdown (Boiler & Machinery) - $750,000,000 per occurrence

9. Program Structure • Flood - $100,000,000, with lower sub limits for properties located in specific flood zones • Named Windstorm - $100,000,000 per occurrence • Fine Arts - $50,000,000 • Terrorism - $750,000,000 • Policy deductible is $250.000 • In addition to the above, the policy also includes several other sub limits and deductible levels

10. Broker Services • Program Placement, which includes taking the program to market and securing placement with carriers of appropriate size and financial strength. • Review and understand the various relationships between DASNY and its clients. • Represent and assist DASNY and its Clients in all discussions and transactions with all insurers.

11. Broker Services • Review policies and endorsements for accuracy and conformity to specifications and negotiated coverages. • Meet with staff designated by DASNY’s Assistant Director of Risk Management as necessary. • Provide additional services of a technical nature, as requested.

12. Property Claim Services • Assign a dedicated claim representative to act in the capacity of a consultant to DASNY and as a liaison between DASNY, the insurance carrier’s claim representative/adjuster and attorneys. • Notify insurance carriers of claims against the policy(ies) per procedures established in consultation with DASNY. • Monitor those claims until closing and advise DASNY as necessary.

13. Property Claims Services • Provide forensic accounting and property claims services, including catastrophic, large damage or complex property claims. • Participate in monthly claim status meetings and on an as-needed basis. • Assist with the collection and packaging of claim expense information.

14. Administrative Services • Assist DASNY in its communications with the insurance carrier and other parties associated with the insurance program. • Provide expertise and assistance in the interpretation and application of policy provisions, terminology, industry-specific/technical documents and applications, etc. • Process or facilitate the processing of certificates of insurance, deliver binders and policies.

15. Loss Control Services • Possess the knowledge and have the capability to conduct inspections/surveys. • Provide DASNY with a written loss prevention plan that identifies the recommended services. • Assist in the development and application of valuation methods/tools.

16. Broker Qualifications • Access to markets of sufficient capacity to meet the minimum program limits of $750 Million for Property/Builder’s Risk with carriers minimally rated “A-“ by A.M. Best at the time of submittal. • Strong knowledge of all aspects of property insurance markets, with a demonstrated degree of influence among carriers. • Ability to favorably represent DASNY to the insurance markets to solicit a competitive quote/proposal.

17. Broker Qualifications • Loss control experience with a significant concentration of experience at higher education institutions and in the construction industry. • Demonstrated experience and success in the reporting, handling, and negotiation of multi-million dollar claims, including claims with multiple locations . • Evidence of in-force Errors & Omissions coverage with a minimum limit of $25,000,000 or proof of insurability with a current quote for limits required to increase existing limits to that level

18. Selection Process • Proposals will undergo an evaluation process conducted by a Committee selected by DASNY. • The Committee will evaluate the proposals based upon the criteria for selection set forth in Section 2 and Section 3 of the RFP. • The selection process will begin with the review and evaluation of each of the written proposals.

19. Selection Process The purpose of this evaluation process is twofold: • (1) to examine the responses for compliance with the RFP; • (2) to identify the complying brokers that have the highest probability of satisfactorily performing the scope of services. • DASNY reserves the right to determine whether interviews will be necessary, however brokers should not rely on the opportunity for an interview

20. Selection Process • DASNY is committed to diversity and equal employment opportunities among its contractors, including insurance brokers. • DASNY will make a good faith effort to achieve MWBE participation for insurance broker services to ensure that qualified MWBE firms are included in the selection process. • It is the goal of DASNY to utilize qualified brokers that have a demonstrated history of hiring, training, developing, promoting and retaining minorities and women. • Please see the RFP for more specifics