TO: Mayor and City Council REVISED
FROM: Beth Beatty, City Manager
SUBJECT:
title
Authorization to Approve the Proposed 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. 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, AJG, Area Executive Vice President, 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 Cyber. Cyber will be transitioning to a Cyber Media Coverage that will enhance our protection for online crimes and data breaches and offset any costs with data recovery.
The total projected cost of the renewal proposal submitted by Arthur J. Gallagher is $1,766,512. 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).
The Following is a comparison of the historical coverage costs compared with the proposed quote:
* Includes Auto Liability, Law Enforcement Liability, Public Officials, Employee Benefits and Employment Practices Liability. Premium subject to Surplus Lines Tax/variances are typically less than 10%.
** Includes three (3) separate excess liability carriers with costs of coverage at: $329,257, $248,496 & $155,310 ($5M/ea).
*** Includes Boiler & Machinery, Excess Flood, E...
Click here for full text