R2018-117 Authorizing Property and Liability Insurance Coverage for the City for the Policy Period Oct. 1, 2018 - Oct. 1, 2019

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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 $ Prior Price Expiring Price Proposed Price % Change 2016-2017 2017-2018 2018-2019 Property& Liability 262,419.00 257,312.00 264,473.00 2.8% Excess property 73,764.00 71,000.00 68,000.00 (4.2)% Workers compensation 652,429.00 652,429.00 611,957.00 (6.2)% Boiler, crime, cyber 24,141.00 20,413.00 20,524.00 0.5% Total 1,012,753 1,001,154.00 964,954.00 (3.6)% The market review conducted by Arthur J Gallagher indicated that the coverage and price offering from the expiring carriers could not be and would not be improved upon by other carriers given current marketplace climate and price offering of the expiring carriers. Of note: The recent experience of insurance premiums is favorable for the City, the 2018 — 2019 premium is a reduction of 3.6% versus the 2017—2018 premium, and a reduction of 4.7% from the 2016—2017 premium. The premium reductions can be attributed to favorable experience in excess property and workers compensation premiums. City Risk Management has devoted much attention to the management of the city's workers compensation experience over this period, including, implementation of improved front end injury evaluation and treatment through the Company Nurse program; implementation of improved Occupational Health experience through HSHS; improved use of Nurse Case Manager services in the management of claim treatment; and, improved proactive management of claims. These approaches have had a favorable impact. City Risk Management will continue to establish programs and implement strategies, in conjunction with city department management, targeted to continuous safety improvement in the work place environment, with long term expected benefit. POTENTIAL OBJECTIONS None INPUT FROM OTHER SOURCES Ted Miller&Cary Peters, Arthur J. Gallagher Risk Management Service, Inc. STAFF REFERENCE Billy Tyus, Interim City Manager Gregg D. Zientara, City Treasurer&Director of Finance Jenifer McCoskey, Risk Management Administrator BUDGET/TIME IMPLICATIONS Insurance coverage will commence effective October 1, 2018.