The proposed bill seeks approval for a new all-risk property insurance policy with Zurich American Insurance Company, covering all District real property assets for a total of $2,878,680. The policy will be effective from May 15, 2025, to May 14, 2026, and has been deemed the most favorable option after the Captive Insurance Agency evaluated over 60 insurers. The premium includes $2,818,030 for coverage and $60,650 for engineering fees, with a total insured value of $275 million and Zurich covering 55% of the primary loss layer, which amounts to $500 million. The Captive Insurance Agency has confirmed that the necessary funding is available within its budget for the fiscal year 2025.

The bill outlines various coverage provisions, including deductibles for different types of damage, such as a standard deductible of $1,500,000 for combined Property Damage and Time Element losses. It introduces new coverage options, including Cloud Service and Communication Interruption, Logistics Extra Cost, and Crisis Event coverage. Additionally, the bill specifies classifications for earthquake zones and storm zones across the United States and various countries, detailing limits of liability and deductibles applicable to each zone. The legislation also includes disclosures related to the Terrorism Risk Insurance Act (TRIA), ensuring clarity on terrorism-related risks and the government's role in mitigating those risks. Overall, the bill aims to enhance insurance coverage clarity while ensuring compliance with legal standards.