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LETTER to the DECATUR CITY COUNCIL
<br /> Finance Department
<br /> DATE: September 15, 2021
<br /> TO: Honorable Mayor Moore Wolfe
<br /> City Council
<br /> FROM: Scot Wrighton, City Manager
<br /> Gregg D. Zientara, City Treasurer& Director of Finance
<br /> SUBJECT: Resolution(s) Authorizing Insurance Coverage for Property, Liability and Workers
<br /> Compensation for the City of Decatur, Illinois for the Policy Period October 1, 2021
<br /> to October 1, 2022
<br /> SUMMARY RECOMMENDATION
<br /> City Administration recommends City Council approval of the attached resolution(s) authorizing insurance
<br /> coverage for property and casualty, liability, and workers compensation for the period October 1, 2021
<br /> through October 1, 2022.
<br /> BACKGROUND
<br /> The Risk Management program of the City of Decatur includes a series of self insured and excess
<br /> coverage policies securing the property and casualty, liability, and workers compensation risks of the
<br /> organization.
<br /> The City has long maintained a self-insured position with excess insurance coverage at levels deemed to
<br /> be affordable and appropriate in protecting the City from risk.
<br /> The City has an insurance broker and advisory arrangement with Arthur J. Gallagher Risk Management
<br /> Services, through their Decatur office. Under this arrangement, Arthur J. Gallagher provides broker
<br /> services including the shopping for insurance offerings and pricing, advisory services including evaluation
<br /> and recommendation of coverage levels and insurance products, advisory services in all risk
<br /> management matters, and loss mitigation services. This specific arrangement has been in place since
<br /> 2014, and further includes a broker / advisor relationship with AJ Gallagher and its predecessors
<br /> approaching 25+ years.
<br /> Existing Coverage—The City's expiring insurance program includes:
<br /> Property insurance—coverage limit of$1,000,000 per occurrence with a $150,000 SIR or deductible,
<br /> Excess Property insurance—coverage limit above $1,000,000 to total property of$214.5 million,
<br /> Auto physical damage insurance—coverage limit of$20.2 million with a $100,000 SIR or deductible,
<br /> Liability insurance—coverage limit of$15,000,000 per occurrence with a $150,000 SIR or deductible,
<br /> Business auto liability—coverage limit$10,000,000 per accident with a $150,000 SIR or deductible,
<br /> Workers Compensation insurance—coverage limit of$50,000,000 with a $300,000 SIR or deductible,
<br /> Equipment breakdown insurance—coverage limit of 100,000,000 with a $5,000 SIR or deductible,
<br /> Crime insurance—coverage limit$2,000,000 per loss with a$5,000 SIR or deductible,
<br /> Cyber liability insurance—coverage limit of$5,000,000 per occurrence with a $50,000 SIR or deductible.
<br /> Crisis protection insurance—coverage limit of$1,000,000 per occurrence with $5,000 SIR or deductible.
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