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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