R2019-144 Resolution Authorizing Property and Liability Insurance Coverage for the City of Decatur, Illinois for the Policy Period October 1, 2019 to October 1, 2020

Home Browse Search

LETTER to the DECATUR CITY COUNCIL Financial Management Department #2019-7 DATE: September 18, 2019 TO: Honorable Mayor Moore Wolfe City Council FROM: Scot Wrighton, City Manager Gregg D. Zientara, City Treasurer& Director of Finance SUBJECT: Resolution Authorizing Insurance Coverage for Property, Liability and Workers Compensation for the City of Decatur, Illinois for the Policy Period October 1, 2019 to October 1, 2020 SUMMARY RECOMMENDATION City Administration recommends City Council approval of the attached resolution authorizing insurance coverage for property, liability and workers compensation for the period October 1, 2019 through October 1, 2020. 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 position with excess insurance coverage at levels deemed to be affordable and appropriate in 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, 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. Existing Coverage—The City's expiring 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, Equipment breakdown insurance—coverage limit of 100,000,000 with a$5,000 SIR or deductible, Crime insurance—coverage limit$500,000 per loss with a$5,000 SIR or deductible, Cyber liability insurance—coverage limit of$1,000,000 per occurrence with a$25,000 SIR or deductible. City Risk Management recommends renewal of the expiring insurance coverage. New Coverage—The City recommends purchase of additional coverage: Excess liability insurance. Increase the coverage limit to$15,000,000 per occurrence with the purchase of an additional liability limit of$5,000,000. The City has maintained the $10,000,000 liability limit since the