Report to Mayor and City Council
Tuesday, June 15, 2021
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 2021/22 (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) Auto Physical Damage; 5) Earthquake, 6) Cyber Liability; 7) Volunteer Accident Insurance; 8) Drone Insurance; 9) Crime Insurance; 10) Storage Tank Liability and 11) Fiduciary Liability; for FY 2021/22. The estimated FY 2021/22 premium cost for these policies is NOT-TO-EXCEED $972,336.
* The year-over-year increase of $181,378 is largely due to the hardening insurance market across nearly every coverage line and the addition of auto physical damage insurance for passenger vehicles and earthquake insurance. 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 and the Alliant Property Insurance Program 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.
* The property market is very difficult in the aftermath of recent catastrophic losses including wildfires in California, Hurricanes in the South/Southeast, Wind/Hail/Convective storms in the Midwest and the recent ice storm, Uri, in Texas. Though there are still ample markets writing property insurance, there were none that could compete with the City's current program. The City's broker marketed the program and provided a marketing report to City staff. Overall, the City's property insurance increased by $42,154 due to a 0.73% increase in replacemen...
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