REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 23, 2026
FROM
REBECCA SUAREZ, Director, Department of Risk Management
SUBJECT
Title
Renewal of Pollution Liability Insurance Program
End
RECOMMENDATION(S)
Recommendation
1. Approve the renewal of the County’s pollution liability insurance program with $50,000,000 in coverage limits for each pollution condition and aggregated limits, in excess of a $1,000,000 self-insurance retention ($3,000,000 aggregate over three years), as recommended by the County broker Willis Towers Watson West Insurance Services, Inc., for a total premium cost of approximately $1,243,313, not-to-exceed 15% over the estimated cost, for the period of July 1, 2026, through July 1, 2029, as follows:
a. $10,000,000 limit in excess of $1,000,000 self-insurance retention, for a premium of approximately $551,386.
b. $15,000,000 each claim and combined policy limit in excess of $10,000,000 per occurrence and aggregate limits first layer, for a premium of approximately $362,610.
c. $25,000,000 per occurrence and aggregate limit in excess of $25,000,000 secondary layer for a premium of approximately $329,317.
2. Authorize the Chief Executive Officer, County Chief Financial Officer, or Director of Risk Management to execute the initial binding orders on behalf of the County and any subsequent binding orders, documents, or quotes necessary to approve mid-term change orders for additional coverage, not-to-exceed 15% over the estimated renewal cost, per insurance program and premium, for the period of July 1, 2026, through July 1, 2029 for Recommendation No. 1, subject to review by County Counsel.
3. Authorize the Purchasing Agent to approve change orders to purchase orders issued for the insurance programs and premiums in Recommendations Nos. 1 and 2, for mid-term changes, subject to the limits referenced in Recommendation No. 2.
(Presenter: Rebecca Suarez, Director, 386-8723)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost). The total premium of approximately $1,243,313, will be paid by the Department of Risk Management’s (DRM) pollution liability insurance funds and will be recovered through the Board of Supervisors (Board) approved rates charged to County departments and Board-Governed Special Districts. Sufficient appropriation is included in the DRM’s 2026-27 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
The DRM administers the County’s self-insurance program for Pollution and procures excess insurance policies for additional protection. On June 27, 2023 (Item No. 101), the Board approved the renewal of a pollution liability insurance program, for a total estimated premium of approximately $1,245,867, for the period of July 1, 2023, through July 1, 2026.
Approval of Recommendation No. 1 will provide a new three-year coverage period of July 1, 2026, through July 1, 2029, with a total renewal premium of approximately $1,243,313. This represents an increase of $36,662, or approximately 3%, over the previous policy final premium of $1,206,651 due to various reasons, including an increase of $500,000 in the Self-Insured Retention (SIR), a new maximum coverage sublimit of $1,000,000 on Bioterrorism Decontamination coverage, and a new Odor Exclusion clause for all claims related to odors originating from dairies. The recommended renewal will maintain the overall coverage limits of $50,000,000 in aggregate as the expiring policy. The SIR will increase from $500,000 to $1,000,000 per occurrence and $3,000,000 aggregate over three years. Limits are for a three-year term and are not reinstated on an annual basis. The DRM recommends the renewal of the pollution liability insurance program to protect the County’s financial assets from liability arising from the operation of wastewater treatment plants, recycling facilities, underground storage tanks and other services that the County provides.
A final premium amount will not be available until closer to the actual renewal date, due to the complexity of the negotiations that the County’s broker, Willis Towers Watson West Insurance Services, Inc. (Wilson Towers Watson), conducts with multiple insurance carriers on behalf of the County to develop the insurance coverage. Approval of Recommendation No. 2 will authorize the Chief Executive Officer (CEO), County Chief Financial Officer (CFO), or Director of the DRM (Director) to execute the binding order on behalf of the County, ensuring a timely renewal process with no lapse in coverage. Additionally, Recommendation No. 2 will authorize the CEO, CFO, or Director to execute any subsequent binding orders, documents, or quotes necessary to approve mid-term changes to the policies referenced in Recommendation No. 1 for additional coverages, subject to a not-to-exceed limit of 15% over the total estimated renewal cost, per insurance program and premium, for the period of July 1, 2026 through July 1, 2029. Authorizing the CEO, CFO, or Director to approve mid-term changes for additional coverage will allow the DRM to provide insurance coverage for any additional assets the County may acquire mid-term. Failure to provide insurance coverage for assets acquired mid-term may leave certain assets uninsured and expose the County to significant risk.
Approval of Recommendation No. 3 will authorize the Purchasing Agent to approve change orders to purchase orders issued for the insurance program and premiums listed in Recommendation No. 1 for mid-term changes, subject to the limits referenced in Recommendation No. 2. Approval of Recommendation No. 3 will ensure continuous coverage and allow the County to update coverage as needed.
PROCUREMENT
On November 16, 2021 (Item No. 62), the Board approved contracts with various insurance brokers, including Willis Towers Watson for the period of December 11, 2021, through December 10, 2026. DRM contracts with multiple brokers to leverage the experience each holds in specific markets. Willis Towers Watson was selected for this program due to their experience and expertise in this market. Willis Towers Watson approached new and existing markets for quotes, successfully obtaining a proposal for the Pollution Liability Insurance Program with the recommended carriers that maintain the same overall coverage limits as the expiring policies.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (G. Ross Trindle III, Chief Assistant County Counsel, 387-5455) on June 2, 2026; Purchasing (Jessica Barajas, Supervising Buyer, 387-2065) on June 2, 2026; and County Finance and Administration (Eduardo Mora, Administrative Analyst, 387-4376) on June 3, 2026.