Environmental risk insurance coverage proposal memo, July 2002

NYC 9/11 Public Portal Document

AvaitronirRobert J From; Hoffer, Mark " Sent: Friday, July 19, 2002 5:11 PM To: Avaltroni, Robert: Gilsenan, Michael (ex) Cc; Schiano, Frank Subject: FW: World Trade Center Issues

This relates to the extra layer of environmental risk insurance that the City might buy to protect its interests on the residential apartment clean-up program. Recall that we are asking the contractors to buy $10MM of this coverage, and AIG is apparently willing to sell the City $90MM more (for a total of $100MM in coverage). The premium to AIG would be steep (this type of insurance is generally expensive and the WTC aspect makes it even more so in this case) — about $4.5 MM for 3 years’ worth of coverage on a claims made basis (that is, in order to get AIG to make payment on a claim, the claim must be filed within the 3 year policy period; if an apartment owner sues us 20 years down the road, the policy would not cover). What Larry Martin is now asking is: Did we run the question by FEMA as to whether this coverage would be paid for by them, if the City bought it? If not, can we do so? Please advise. ■Original Message— Martin, Lawrence [mailto:[email protected]] Sent:... Friday, July 19, 2002 4:45 PM To: ‘[email protected] ’ Cc: Kahn, Lawrence Subject: FW: World Trade Center Issues

I’ve be following up w/ Marsh. A question about FEMA: Do you know who at DEP or 0MB would know the status of advance approval for this insurance by FEMA? This is crucial BEFORE the insurance is placed. ---- Original Message----- / KaHn7 L-awrehce ---------- Sent: Friday, julyl 9,' 20022:14' PM " To: Martin, Lawrence Cc: Mark Hoffer (E-mail) Subject: FW: World Trade Center Issues

Mark says Dan Lavoie of Marsh McLennan told him that AIG would only be willing to provide an additional reporting period of one year and that would probably cost us about twice the premium previously quoted for the three year period (Option B) discussed below. Dan said he would like to talk directly to you about the precise language to be used to describe the City’s insured status. Dan suggested you give him a call at 212-345-7078. If you have the time, could you give him a call?

Thanks. —Original Message----- From: H6ffer,Mafk[rhailto:[email protected]^gov] Serif: '"'Tuesday, July 02, 2002 9:55 AM To: ‘[email protected] ’

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