R2017-117 Property, Liability & Workers Compensation Insurance for the City

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Item Coversheet Page 1 of 2 Financial Management DATE: 9/11/2017 MEMO: Letter to the Decatur City Council Financial Management Department 2017-06 TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Tim Gleason,City Manager Gregg D.Zientara,City Treasurer&Director of Finance SUBJECT: RESOLUTION AUTHORIZING CITY MANAGER TO EXECUTE INSURANCE COVERAGE FOR PROPERTY, LIABILITY AND WORKERS COMPENSATION FOR THE CITY OF DECATUR,ILLINOIS FOR THE POLICY PERIOD OCTOBER 1,2017 TO OCTOBER 1,2018 SUMMARY RECOMMENDATION: City Administration recommends City Council approval of the attached Resolution authorizing the City Manager to execute insurance coverage for property,liability and workers-compensation for the period October 1,2017 through October 1,2018. BACKGROUND: The Risk Management program of the City of Decatur includes a series of self insured and excess coverage policies securing the property,liability and workers compensation risks of the organization. The City has long maintained a self-insured coverage position with excess insurance coverage further securing risk at levels deemed to be affordable and appropriate protecting the City from risk. The City has an insurance broker and advisory arrangement with Arthur J. Gallagher Risk Management Services, through their Decatur office. Under this arrangement, Arthur J. Gallagher provides broker services including the shopping for insurance offerings and pricing, claims processing and claims management support, advisory services including evaluation and recommendation of coverage levels and insurance products,advisory services in all risk management matters,and loss mitigation services. This specific arrangement has been in place since 2014, and further includes a broker / advisor relationship with AJ Gallagher and its predecessors approaching 25+years. The City's insurance program includes: Property insurance—coverage limit of$1,000,000 per occurrence with a$150,000 SIR or deductible, Liability insurance—coverage limit of$10,000,000 per occurrence with a$150,000 SIR or deductible, Workers Compensation insurance—coverage limit of$50,000,000 with a$500,000 SIR or deductible. The City insurance program prepared by City Risk Management and recommended herewith for City Council authorization to proceed forward to bind coverage for the insurance period commencing October 1, 2017 and ending October 1, 2018, includes coverage limits and SIR deductibles the same as the expiring coverage. Arthur J Gallagher marketed the City's coverage to multiple insurers to ascertain interest and competitiveness in the marketplace. The renewal proposals received from the expiring carriers offered the most competitive terms and conditions. Annual premium$ Expiring Price Proposed Price Property&Liability 262,419.00 255,514.00 Excess property 73,764.00 71,000.00 Workers compensation 652,429.00 652,429.00 Boiler,crime,cyber 24,141.00 20,470.00 Total 1,012,753.00 999,413.00 https:Hdecatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=1273 9/15/2017