TO: Mayor and City Council
FROM: James V. Capparelli, City Manager
SUBJECT:
title
Renewal of Property and Casualty Coverages
end
BACKGROUND:
The City utilizes the services of Arthur J. Gallagher Risk Management Services, Inc. (AJG) to represent the City in obtaining Property and Casualty Insurance Coverage. Each year, AJG and the City meet to update records, discuss coverages, and review trends in the marketplace. Then AJG solicits quotations from the City's current carriers as well as various independent carriers from which the most competitive quotes are selected and recommended for approval by the City. The City works primarily with Rich Stokluska, Area Executive Vice President, AJG, who has vast experience in municipal insurance as well as the City's account.
CONCLUSION:
Specifically, this year our biggest increase is seen in the area of Excess Liability** due to the current carrier's decision not to renew or add new business within municipal government. This left us with the option of spreading out the excess coverage to three different carriers, each of whom provided separately tiered rates to insure vs. a singular rate as the City had enjoyed previously. Options to reduce the currently proposed increase would be to reduce the amount of excess liability coverage, if desired.
The total projected cost of the renewal proposal submitted by Arthur J. Gallagher is $1,291,676. All coverages meet the City's specifications. Funding is currently available in the General Corporate Fund/Public Liability & Property Damage (Org Code 01014000; Object Code 525200) and the General Corporate Fund/Workers Compensation (Org Code 01014000; Object Code 502600); however, the increase was not planned for in the current budget and an amendment may be needed later in the year depending upon future worker's compensation costs.
The following is a comparison of the historical coverage costs compared with the proposed quote:
Coverage
2016/2017
2017/2018
2018/2019
2019/20...
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