Report to Mayor and City Council
Tuesday, July 02, 2019
Consent
SUBJECT:
Title
CONSIDER RENEWAL OF EXCESS LIABILITY, EXCESS WORKERS COMPENSATION, PROPERTY, CYBER LIABILITY, VOLUNTEER ACCIDENT, CRIME INSURANCE AND PURCHASE OF FIDUCIARY LIABILITY INSURANCE FOR FY 2019/20 (CITY COUNCIL)
Body
I. SUMMARY
Presented for City Council's consideration is the annual renewal of the following insurance policies: 1) Excess Liability Insurance; 2) Excess Workers' Compensation; 3) Property Insurance; 4) Cyber Liability; 5) Volunteer Insurance; 6) Crime Insurance; 7) Storage Tank Liability and a quote proposal for Fiduciary Liability for FY 2019/20. The annual FY 2019/20 insurance cost is $735,757 for these policies.
* The year-over-year increase of $140,692 is largely due to higher excess liability premium rate. Public entities across the board have experienced dramatic increases in adverse loss development and this trend recently has had an adverse effect on the CSAC-EIA insurance pool which the City is a member of. City's broker marketed the renewal to ensure that the quoted rates are competitive. The recommended program was the best price and coverage option.
* Excess workers compensation premium is lower by $10,782 due to soft market conditions and CSAC-EIA's approval to include the City into the pool.
* Property insurance premium is higher by $14,740 due to a 4% automatic trend increase in replacement values and a 14% rate increase.
* Storage Tank Liability insurance is higher by $836 due to age of the tanks.
* Additionally, staff is recommending to purchase stand-alone Cyber Liability insurance at a premium of $4,310, replacing the limited coverage afforded under the property program; and a new Fiduciary Liability insurance at a premium of $5,862.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE the CSAC-EIA GL1 Program to provide coverage for the city's Excess Liability Insurance for FY 2019/20, at an overall not-to-exceed cost ...
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