The proposed bill seeks the approval of the Council of the District of Columbia for an all-risk property insurance policy with Factory Mutual Insurance Company, valued at $4,852,276. This policy will cover all District real property assets and is effective from May 15, 2026, to May 14, 2027. The Captive Insurance Agency, which has independent contracting authority, determined that Factory Mutual offers the most favorable terms after soliciting quotes from 69 insurers. The current policy with Zurich American Insurance Company will expire on May 14, 2026, making the new policy essential for uninterrupted coverage. The bill also certifies that the contract aligns with the fiscal budget and confirms compliance with District tax laws.

Additionally, the bill introduces several amendments to existing insurance policy provisions, particularly regarding coverage for physical loss or damage, including specific exclusions and conditions. It clarifies that the policy will cover contractors' interests during construction but excludes TIME ELEMENT coverage. New provisions for cyber insurance are included, covering data restoration and costs related to cyber events. The bill also outlines coverage for losses due to communicable diseases, debris removal, and various operational disruptions, while emphasizing the importance of accurate representation by the insured. Overall, the bill aims to enhance clarity and detail in the insurance policy, ensuring comprehensive coverage for the District's real property assets.