 |
|
|
The Port has established a separate Risk Management
Department, reporting to the CFO , which is currently staffed
by four professionals. Risk Management administers the Port's Owner
Controlled Insurance Program (OCIP). The Port imposes certain insurance
requirements on Port tenants, vendors and contractors. Port policy
generally requires that each agreement, with an entity doing business
with the Port, contain provisions to defend and indemnify the Port
from losses arising out of that entity's activities and/or products,
and to maintain specified levels of insurance coverage as a financial
quarantee.
The Port established an
Owner Controlled Insurance Program (OCIP) in July 1999 to
transfer the insurable risks of contstruction for its capital improvement
program in Maritime, Commercial Real Estate and Airport. A seven
year "non-cancelable" program was placed providing a limit of general
liability of $304 Million (no deductible), workers' compensation,
employer's liability, longshoremen & harborworker's act coverage
(no deductible); builder's risk $500 Million ($100,000 deductible);
contractor's pollution legal liability $20 Million ($100,000. deductible);
earthquake $25 Million (5% deductible); project-specific professional
liability $75 Million ($150,000. deductible, $500,000. aggregate
deductible).
|
|
