April 1, 2021: PRM's Response To The Town of Longboat Key
April 1, 2021: PRM's Response To The Town of Longboat Key
ATTORNEYS AT LAV/
Celebrating 25 years
Est. 1996
April 1,2021
Claim#lmatter: Pollution loss due to wastewater force main leak (No claim #
assigned)
Date of Incident 06-29-2020
The undersigned attorney has the pleasure of representing Public Risk Management of
Florida ("PRM"), and PRM has requested that I respond on its behalf to your certified mail
and US mail correspondence of March ll, 2021 on behalf of the Town of Longboat Key
(hereinafter the "Town") to both PRM and World Risk Management, LLC (hereinafter
"\MRM") in the above referenced matter. Please this corresno ndence as PRM's
formal denial and/or declination of propertv insurance. or other. coverage bv PRM
to the Town in this matter, as well as PRM's formal reservation of rights to continue to
deny or decline coverage for any property loss (whether the asserted damages are allegedly
direct or indirect), for the following reasons listed below.
Maggie D. Mooney, Esq.
Persson, Cohen ôr Mooney, P.A.
April1,2021
Page2
As a preliminary matter, your March lI,202l coffespondence makes reference to the fact
that a claim was previously reported by Sandi Henley to PRM on or about July 1, 2020;
while Ms. Henley did make PRM aware of this pollution loss in early July, 2020 , Ms.
Henley did not formally submit either a claim, or a "report only" notice on behalf of the
Town, and instead inquired only into whether there was any coverage available to the Town
for this loss under the PRM Coverage Document or otherwise. She was advised at that time
by both PRM and by WRM representatives that there was no property insurance coverage
available to the Town under the PRM Coverage Document due to the location of the leak,
and further that the Town of Longboat Key had previously declined to purchase any
Environmental Pollution Liability policy (which would have provided coverage for this
loss) when offered that option by WRM prior to the l0lll20l9 insurance renewal.
Nevertheless, in light of your March I l, 2021 conespondence, PRM is now treating this
as a formal claim which, for the reasons stated below, is herein respectfully declined andlor
denied, due to the presence of several specific property insurance coverage exclusions.
The applicable PRM Coverage Document is PRM General Coverage Document # PRM
019 - 006, effective from October 1,2019 through October 1,2020, given that the reported
date of incident in this matter is June 29,2020. As you asserted in your March ll
correspondence to PRM and WRM, this pollution loss did not occur on Town property, but
instead on June 29, 2020, the Town and staff from the Manatee County Utilities
Department discovered that there was a leak in the force main caused by a breach in the
bottom ofthe force main at a location approximately 350-400 feet inland on the other side
of Sarasota Bay (i.e., on the land side of the bay) on real property owned by Long Bar
Pointe, LLP, which is located several miles away from (and across Sarasota Bay from) the
Town of Longboat Key. As such, it is important for coverage purposes to note that this
pollution loss did not occur on property or land owned by the Member, or on property of
the Member, but instead occurred several miles away on property owned by a private
company.
While the PRM Coverage Document does provide certain limited coverage for accidental
contamination in the amount of $250,000.00 in limits for pollution losses occurring on the
Town's property or within a certain distance from premises owned by the Town, it should
be noted that this coverage only extends to "Covered Property" of the Member as defined
in the Coverage Document - see p. 31, paragraph 21, and p. 14, paragraph 16, and p. 21,
paragraphN of Coverage Document. Since the terminology "Covered Property" is held to
include Land and Land values for the location of the loss in question, and because the loss
in this case occurred several miles away from the Town in an underground sewage
treatment pipe on the other side of Sarasota Bay, there is no property, or other, insurance
Maggie D. Mooney, Esq.
Persson, Cohen 6r Mooney, P.A.
April1,2021
Page 3
coverage available to the Town under the PRM Coverage Document for this loss. This
result is true regardless of whether the alleged damages are caused directly or indirectly as
a result of this pollution loss.
Under Section I ofthe PRM Coverage Document, relating to property insurance coverages,
while PRM does provide certain limited coverage for accidental contamination to Covered
Property owned by the Member, any underground pipes located more than 1,000 feet from
the premises of the Member are specifically excluded as "Property not covered" under the
PRM Coverage Document - see page 32 of Coverage Document, paragraph C titled
"Property not covered", paragraph 6, which states: "Except as for that which may be
provided as an extension of coverage, this Coverage Document does not cover: (6) power
transmission lines, feeder lines and undersround nines m than 1.000 feet from the
premises of the Member unless specificallv approved bv the Association". (Emphasis
added)
B. PERILS EXCLUDED
This Coverage Document does not insure against any of the following:
Moreover, there are additional applicable coverage exclusions contained elsewhere in the
PRM Coverage Document, and specifically in the General Coverage Document exclusions
section. Specifically, those provisions state:
(a) Any liability arising out of the operation of the principles of eminent
domain, condemnation proceedings, or inverse condemnation
proceedings by whatever name called whether such liability accrues
directly against the MEMBER or by virtue of any agreement entered
into by or on behalf of the MEMBER. This exclusion does not apply to
claims brought under Florida Statute 70.001, the "Bert J. Harris, Jr.,
Private Property Rights Protection Act".
of waste:
(c) Which
^
or were at anv time transnorted- handled.
stored. trea disoosed of. or nrocessed as waste bv or for
anv MEMBER or anv person or organization forwhom anv
MEMB mav be lesallv re ble: or
(ü) If the operations are to test for, monitor, clean up, remove,
contain, treat, detoxifr or neutralize, ot in any way respond
to, or assess the effects ofPOLLUTANTS.
(3) This exclusion does not apply to herbicide or pesticide spraying, if the
operations meet all standards of and comply with any statute,
ordinance, regulations or license requirement of any federal, state or
local government.
(a) This exclusion does not apply to the reverse flow of sewage into any
building from a sewage facility, fixed conduit or sanitary sewer that
you own, operate ormaintain. (Emphasis added).
As a result of the above, PRM respectfully declines coverage to the Town of Longboat Key
in this claim.
Finally, we have attached a copy of the Town renewal proposal for property and casualty
insurance for the October 1,2019 renewal, in which the Town was offered the option of
purchasing an ancillary, and optional coverage for pollution and remediation liability
coverage in the amount of $1 million in limits for each pollution condition but that, as the
Town had historically done for several years beforehand, the Town of Longboat Key
declined on p.16 to purchase that coverage through Indian Harbor Insurance Company.
This is not a standard PRM property coverage, and not all PRM Members elect to purchase
this optional coverage; in fact, only approximately 20 to 25 PRM Members historically
elect to purchase this optional pollution liability coverage (even though it is made available
to all Members), and again the Town was specifically offered this coverage by WRM prior
to the l0llll9 insurance renewal (as it had been in prior years), but the Town declined to
purchase that option. This is exactly the type of policy which would have provided
coverage to the Town of Longboat Key in this case, if such a policy had indeed been
purchased.
Should you have any questions, requests, concerns or need to speak with me, please do not
hesitate to contact the undersigned at your convenience. PRM continues to reserve any and
all rights which it has to continue to controvert, deny or decline coverage in this matter in
the future.
Maggie D. Mooney, Esq.
Persson, Cohen & Mooney, P.A.
April1,2021
Page 7
I remain,
DONOVAN RO
Enclosure
Effective: 101112019
Expiration: 10/1 12020
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Pn¡pRneo Bv
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Risk Management
A BALLATOR COMPANY
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PRoPERTY & Crsunlrv lNsuRANcE
PRESENTED: AuGUsr 27" 20L9
Ex¡curve Suvrn¡nny
WHOWE ARE
The WRM management team brings over 100 combined years of insurance industry intellectual capital to our
clients dedicated to Public Entity Risk Management and insurance solutions.
Knowing that broad insurance resources and strong market relationships are essential, along with industry
expertise and experience, WRM tactically sought out well-respected industry talent, with solid reputations and
stellar track records to join our leadership ranks.
WRM is a member of Ballator lnsurance Group, formerly Accretive lnsurance Services. Ballator provides insurance
program development, pool creation and underwriting, pool administration services and insurance placement to
both the Public Entity and Non-Prof¡t sectors.
WRM employs a highly professional staff that has a proven record of identifying and satisfying client's needs.
WRM's team commitment is reflected in a combined risk management knowledge and experience.
WHATWE Do
We bring fresh and innovative ideas into the insurance industry. WRM uses our ability of being a "Boutique
Broker" to take advantage of the ever-changing insurance market opportunities. WRM has the expertise that most
small private agents and brokers do not have, and the large publicly traded brokers cannot take advantage of due
to their size and corporate structure.
WRM offers clients a thorough and meticulous insurance need analysis, plus delivers competitive cutting-edge
products and services from nationally recognized insurance carriers based on realistic and reasonable fee and/or
commissions. WRM's dedicated Management/Service Team is recognized throughout the industry for their
commitment to providing clients with prompt responses and solutions.
Oun Repurenou
WRM's management team has an industry wide reputation for professionalism, quality service, knowledge, and
client involvement on a daily basis at all levels, plus a genuine commitment to protect and shield employees and
property of public entity groups and other businesses. WRM believes in its ability to lead in the field of risk
management and loss management and provide innovative solutions.
World Risk Management along with its partner companies' mission is to maintain success through commitment,
honest and timely communication, vision innovation and customer satisfaction.
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PRoPERTY
VALUATIoN
Auro PHYSTcAL DAMAGE ACTUAL CASH VALUE
BUSINESs INcoME AcruAL Loss Susrnlru¡o
Cor¡¡sunnrucr NoNE
lruL¡ruo MnRr¡lr REPLACEMENT CoST
PRop¡RrY R¡prnc¡vrrur Cosr
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ALL PERtLs, CoVERAGE's aruo lrusuRro's/MEMse ns
coMBTNED - PER OccuRRENcE, suBJEcr ro rHE Ssoo,ooo,ooo
FOTTOWING SUB-LIMITS:
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PROPERTY
BUTLDTNG ORDtNANcE
INcLUDED
UNDAMAGED PoRTtoN oF BUtLDtNG
DEMoLtloN INcLUDED
EARTH MoVEMENT FxcFPT S5O,OOO,OOO ANNUAL AGGREGATE
- VEHrcLes,coNTRAcroRSEeutpMENT, S5,000,000 coMBtNED AGGREGATE
FtNE ARTs Corr¡srr\Eo
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PnopeRry & Cnlnne Pnopos¡l-
PRopeRry
TRANSIT s2s,000,000
TUNNEIS, Bnrocrs, DAMS, CATWALKS-
U ruscH rourro s500,000
Vnlunsre Paprns nno Reconos INcLUDED
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- OvER 27 rel.r, Scurpuleo ItrtcLuo¡o
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PRop¡nw & Cnln¡e PRoposnl
Rnrrrue ExposuRes
PRop¡RtY lruroRvrnrroru
RENTAL VALUES $o So
MIScELLANEouS PnoprnrY So 5o
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PRop¡Rrv & Cnrmr PRoposnl
CRrue
DEDUcTIBLE S 1,ooo
LIMITS
/ Per Expiring
lmprovement to Expiring
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Ge¡¡gRm Llns¡uw PRoposal
G¡reRel Lngrtny
EXPIRING CoveRnG¡ RENEWAL
LalMlL8ro Io/0L/Ls LalÙLlt9 ro 10l0tl20
CoMPANY PUBLIc RIsK MANAGEMENT oF FLoRIDA PuBLrc RtsK MANAGEMENT oF FLoRtDA
LIMITS
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EXPIRING CoVERAGE RENEWAL
tolotltsro loloL/te t0lotlt9 to 70l0L/20
CoMPANY PUBLIc RISK MANAGEMENT oT FLoRIon PuBLrc RtsK MANAGEMENT oF FLoRTDA
LIMITS
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DIScLAIMER
Both Public Officials Liability and Employment Practices Liability is subject to a per member combined aggregate of 96,000,000
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WoRxERs' Coruprn¡snnoru PRoposnl
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ExPTRTNG CovERAGE RENEwAL
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CoMPANY PusUc RIsT MANAGEMENT oF FLoRIDA PuBLtc RtsK Mnrune ¡ru¡rur oF FLoRTDA
DEDUcTIBTE NIL NIL
LIMITS
WoRrrns'CoMPENsATtoN
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Srnruronv
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- DcnrH
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. EACH ACCIDENT *s3,ooo,ooo *s2,000,000
- EACH EMPtoYÊE FoR DISEASE *s3,000,000 *s 00 000
SUBJEcT Io
ANNUAL Poltcy Auolr - PLEASE NorE THE
1,0/01"/1,9 to LO/A1./2O WC CovERAGE
P¡Rroo wlLL BE AUDTTED AT A RATE oF
I rucruoro
.0256347 pER DoLLAR oF pAyRoLL oN rHE
TOTAL WC PREMIUM, BEFoRE ANY
PARTICIPATION CREDITS
*201.8 2019
- LIMIT WAS INSERTED INcoRREcTLY
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ExPtRtNG Cov¡RnG¡ RENEWAL
t0loLlt81o tolÙLl19 1,0/OLl19 ro L0/OLl20
CARRIER Gn¡nr Av¡RrcAN I NSURANcE GRear Avr¡nrcAN INSURANCE
NAMED IrusuReo PuBLtc RtsK MANAGEMENT oF FLoRTDA PuBLrc RrsK MANAGEMENT or Flonlon
CovrRnG¡ Fonrur Curws Mnor Clnrvs Mno¡
Rrtnoncnvs Dnte 70/0u2016 t0l0t/2016
DEDUcTIBLE Slo,ooo Slo,ooo
LIMITS
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PRESENTED: AUGUST 27'H 2OT9
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ASSOCIATIoN LIMITS
Ltn¡lr Prn AccTDENT 55o,ooo,ooo
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PRESENTED: AUGUST ZITN 2OL9
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Excess LrnsrLrrY
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CoMPANY PUgLIc R¡sr MANAGEMENT o¡ Fronlon
CoVERAcES INcLUDED
EMPLoYEE BENEFTTS Lraerurv ERRoRS & Owlsslolts LlnsrLrrv Lnw EruroRc¡w rNr Lrnarrrrv
Grru¡nnL LtaslLlrv tNcL. LAW ENFoRcEMENT SS,ooo,ooo Sz,ooo,ooo P¡n Occu nn¡rucr
'r53,000,000 ConngrNeo Exc¡ss LrrerLrry AGcREGATE AppLrEs PER MEMBER FoR EMployEE BENÉFtrs LtABtLtrv, PuBLtc OFFtclArs
ERRoRS & Olussrolus AND EMptoyMENT PRAcncEs LllBrllry olr¡rv*
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AFTER CAREFUL coNslDERATtoN oF THE REFERENcED pRoposAl, wE AccEpr youR tNsuRANcE pRoGRAM As
INDIcATED wlrH AN "X" BELow:
Oprronnr/ANctLLARy CovEReeEs
PAYMENT PLAN: PRM Arlows rHEtR MEMBERs ro pAy rHEtR TorAr cosrs tN roun (4) euARTERLy tNsrArrMENTS. THE
to 25oÁ oF AU. cosrs. THE REMA|NtNG cosrs wtrL BE pAtD ovER THE
FlRsr lNsrAttMENT ts DUE AT tNcEpfloN AND rs EeuAt
NExr rHREE (3) eunnr¡ns.
THls wARRANTS IHAT you HAVE No KNowLEDGE oF ANy cLArM, oR INcTDENT THAT MAy REsurr rN A cLArM, THAT HAs Nor
BEEN REPORTED TO THE INSURANCE CARRIER.
lT ls uNDERsrooD AND AGREED THAT REFERENcED pRoposAL pRovrDEs oNry A suMMARv oF THE tNsuRANcE pRoGRAM
oPTloNs oFFERED. Tx¡ ncrutl PoLtctEs wrLL coNTAtN THE coMpLETE TERMs, coNDtfloNs, DEDUcflBLEs, ExclustoNs,
ETCETERA. PLEASE REVIEW POLICY LANGUAGE FoR A FUtL UNDERSTANDING oF PURCHASED PRoGRAM.
THts DocUMENT tN trs ENTIRETv ts coruFtDENTrAt & pRopnrelaRy tN NATURE - Nor FoR puBLtc REcoRD
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2Ol9-2O20 RËN EwAr PRoPosAr
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PRESENTED: AuGUsr 27'" 2OL9
PRM ts oFFERTNG A Two vEAR Covrnne r AcREEMENT oproN, wrrH RATEs, Nor pREMtuMs, GUARANTEED To REMATN THE
sAME FoR rHElOlt/2019 ro tOltl2O2l Covrnnce PERToD ICovrnnce PERtoDs (rl 701712079 12:0lAu ro
lOlLl2O2012:01AM (ul tOlLl2O20 12:01nru rc LO/tl2Ù2t 12:Olarvrl.
ïHts Two YEAR AGREEMENT DoEs Nor INcLUDE pRopERTy tNsuRANcE covERAGE AND DoES Nor coNslrurE A BAR oN THE
ABtLrry oF A PRM MEMBER To wtrHDRAw FRoM THE PRM Poo¡_.
THts Two Y¡an AcRreurNT rs suBJEcr ro rHn FoLLowrNc, FoR BorH LIABtLrry & WoRrrRs' CoMpENsATtoN:
THts Two vEAR AGREEMENT DoEs Nor TNcLUDE pRopERTv rNsuRANcE covrRAGE ANÐ DoEs Nor coNsrrurE A BAR oN THE
ABtLtTy oF PRM MEMBER To wtrHDRAw FRoM THE PRM PooL.
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