The proposed bill seeks approval for a new all-risk property insurance policy with Zurich American Insurance Company, totaling $2,878,680, which will cover all District real property assets from May 15, 2025, to May 14, 2026. The Captive Insurance Agency, which has independent contracting authority, determined that renewing the policy with Zurich is the most favorable option after marketing the insurance program to over 60 insurers. The policy includes a total insured value of $275 million and covers 55% of the primary loss layer of $500 million after a deductible of $1.5 million. The bill also outlines various coverage options, including loss or damage insured, valuation methods, and specific advantages of the Zurich Edge II policy, which offers additional coverages such as time element coverage and crisis event expenses.

Additionally, the bill details the deductibles applicable to claims, emphasizing that each claim will be adjusted separately, and specifies a combined deductible of $1,500,000 for Property Damage and Time Element per occurrence. It introduces new coverage provisions, including Cloud Service and Communication Interruption, and Logistics Extra Cost coverage, while also establishing a comprehensive classification system for earthquake zones and flood risks across various countries. The bill aims to standardize legal language and coverage across jurisdictions, ensuring clarity and consistency in the application of laws related to insurance coverage. Overall, the legislation enhances the District's preparedness against potential risks while ensuring that policyholders are well-informed about their coverage options and the implications of terrorism-related risks.