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File #: 2020-367    Version: 1 Name:
Type: Consent Status: Agenda Ready
File created: 6/1/2020 In control: City Council
On agenda: 6/16/2020 Final action:
Title: CONSIDER RENEWAL OF EXCESS LIABILITY, EXCESS WORKERS COMPENSATION, PROPERTY, CYBER LIABILITY, VOLUNTEER ACCIDENT, DRONE INSURANCE, CRIME INSURANCE, STORAGE TANK LIABILITY AND FIDUCIARY LIABILITY INSURANCE FOR FY 2020/21 (CITY COUNCIL)
Attachments: 1. City of Carson 20-21 Renewal Estimates as of 6-8-2020
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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Report to Mayor and City Council
Tuesday, June 16, 2020
Consent


SUBJECT:
Title
CONSIDER RENEWAL OF EXCESS LIABILITY, EXCESS WORKERS COMPENSATION, PROPERTY, CYBER LIABILITY, VOLUNTEER ACCIDENT, DRONE INSURANCE, CRIME INSURANCE, STORAGE TANK LIABILITY AND FIDUCIARY LIABILITY INSURANCE FOR FY 2020/21 (CITY COUNCIL)

Body
I. SUMMARY

Presented for City Council's consideration is the annual renewal of the following insurance policies: 1) Excess Liability; 2) Excess Workers' Compensation; 3) Property Insurance; 4) Cyber Liability; 5) Volunteer Accident Insurance; 6) Drone Insurance; 7) Crime Insurance; 8) Storage Tank Liability and 9) Fiduciary Liability; for FY 2020/21. The estimated FY 2020/21 insurance cost for these policies is $822,182.

* The year-over-year increase of $89,695 is largely due to higher excess liability premium. Public entities across the board have experienced dramatic increases in adverse loss development and this trend has had an adverse effect on the Prism (formerly, CSAC-EIA) insurance pool of which the City is a member. The 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 $6,985 due to competitive market conditions and the City's favorable loss experience as a result of practices instituted (new WC legal firm, thorough investigation of claims presented, aggressive settlement of legacy claims and Company Nurse program).
* Property insurance premium is higher by $19,879 due to a 0.74% increase in replacement values and a 22.5% rate increase due to market conditions.

II. RECOMMENDATION
Recommendation

TAKE the following actions:
1. APPROVE the PRISM (formerly, CSAC-EIA) GL1 Program to provide coverage for the city's Excess Liability Insurance for FY 2020/21, at an overall not-to-exceed cost of $584,850.
2. APPROVE PRISM (formerly, CSAC-EIA) to provide coverage for the city's Excess Worker...

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