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1990's.With the escalation af liabifity claims against public entities in the las#decade, we believe that it is
<br /> in the City's best interest to increase the coverage limit further protecting the City. We have been
<br /> shapping this additional coverage for#he last severa!years, but only now have secured a caverage price
<br /> point tha# is very attracfive. The additianal coverage limit is secured far an annual premium price of
<br /> $27,189.
<br /> Crisis Pratection insurance. New coverage for expenses incurred related ta acts of terrorism, civic
<br /> commotion, sabatage, and vicious attacks. Insurance provides coverage of out of pocket expense
<br /> incurred for crisis communicatian and situation management, emergency evacuation, medical expense,
<br /> ransom, post event clean-up, counseling, and others. Recent times have seen an increase in random
<br /> acts af domestic terrorism targeted ta facilities of public en#itiss. This insurance palicy provides coverage
<br /> for expenses described above which are not covered in the existing insurance policies of the City. The
<br /> coverage limit is $1,OQ0,000 per any one occurrence. The additional coverage limit is secured for an
<br /> annual premium price of$40,446.
<br /> Recammer�dation
<br /> City Risk Management hereby reques#s City Cauncil authorization to proceed forward to bir�d coverage
<br /> for the insurance period commencing October 1, 2019 and ending October 1, 2020, including renewal of
<br /> the expiring coverage and the purchase of the new coverage proposed.
<br /> The existing coverage is renewed at a premium price af$962,299 and is a 0.2% premium price reduction
<br /> from the expiring coverage. The total premium price, including the new caverage is$1,029,934.
<br /> Arkhur J Gallagher marketed the City's coverage to multiple insurers to ascertain interest and
<br /> competitiveness in the marketplace. The renewal praposals received from the expiring carrisrs affered the
<br /> mast competitive terms and canditians.
<br /> Annual premium $ Prior Price Expiring Price Proposed Price % Change
<br /> 2017-2018 2018-2019 2019-2020
<br /> Existing coverage:
<br /> Property&liability 257,312.Q0 264,473.00 272,025.04 2.9°l0
<br /> Excess property 71,OOO.QO 68,OQ0.00 68,641.00 0.9%
<br /> Workers compensation 652,429.00 611,957.OQ 6Q0,542.QQ (1.8}°t4
<br /> Boiler, crime,cyber 20,413.00 20,524.00 21,091.00 0.5°/a
<br /> Total existing coverage 1,001,154.Q0 964,954.00 962,299.00 {0.2)%
<br /> New coverage:
<br /> Excess liability �7,�gg,��
<br /> Crisis protection 40,446.00
<br /> Total new coverage 67,635.00
<br /> Total coverage 1,001,154.00 964,954.00 1,q29,934.00 6.7%
<br /> The market review conducted by Arthur J Gallagher indicated that the coverage and price offering from
<br /> the expiring carriers could not be and would nat be improved upon by ather carriers given current
<br /> marketplace climate and price offering of the expiring carriers.
<br /> Of note: The recent experience of insurance premiums is favarable for the City, for existing coverage, the
<br /> 2019 —2020 premium is a slight reduction of 0.2°la vsrsus the 2018 —2019 premium. The 2Q18—2Q19
<br /> premium was a reduction of 3.6°lo versus the 2q17 — 2{�18 premium, and a reduction of 4.7% from the
<br /> 2016—2p17 premium.
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