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Proposed Coverage—The City's renewed insurance program includes:
<br /> Property insurance—coverage limit of$1,000,000 per occurrence with a$250,000 SIR or deductible,
<br /> Excess Property insurance—coverage limit above$1,000,000 to total property of$150 million,
<br /> Auto physical damage insurance—coverage limit of$19.7 million with a$100,000 SIR or deductible.
<br /> Liability insurance—coverage limit of$15,000,000 per occurrence with a$250,000 SIR or deductible,
<br /> Business auto liability—coverage limit$5,000,000 per accident with a$250,000 SIR or deductible,
<br /> Workers Compensation insurance—coverage limit of$3,000,000 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$5,000 SIR or deductible.
<br /> Recommendation
<br /> City Risk Management hereby requests City Council authorization to proceed forward to bind
<br /> coverage for the insurance period commencing October 1, 2023 and ending October 1, 2024,
<br /> including renewal of the coverage as proposed.
<br /> Arthur J Gallagher marketed the City's coverage to multiple insurers to ascertain interest and
<br /> competitiveness in the marketplace. The renewal proposals received from the expiring carriers
<br /> offered the most competitive terms and conditions.
<br /> Annual premium$ Prior Price Expiring Price Proposed Price %Change
<br /> Coverage: 2021 -2022 2022-2023 2023 -2024 vs expiring
<br /> Property&liability 280,803.00 417,007.00 427,103.00 2%
<br /> Excess property 85,409.00 121,962.00 250,000.00 105%
<br /> Equipment breakdown 5,998.00 6,056.00 5,968.00 -1%
<br /> Crime 8,846.00 8,981.00 9,175.00 2%
<br /> Excess liability 83,305.00 313,529.00 388,329.00 24%
<br /> Auto physical damage 66,520.00 67,479.00 61,115.00 -9%
<br /> Cyber liability 55,810.00 160,117.00 200,000.00 25%
<br /> Crisis protection 44,278.00 52,003.00 57,784.00 11%
<br /> Worker's compensation 150,610.00 195,802.00 213,540.00 9%
<br /> The market review conducted by Arthur J Gallagher indicated that the coverage and price
<br /> offering from the expiring carriers would not be improved upon by other carriers given the
<br /> current marketplace climate and price offering of the expiring carriers. However, Arthur J
<br /> Gallagher is still awaiting quotes to match the expiring coverage limit for excess property since
<br /> the renewal with Travelers will result in less excess property coverage. It is believed that the
<br /> anticipated quote will be a lower premium than stated above. Similarly, Cyber liability is not
<br /> finalized at this time and is anticipated to be lower than proposed.
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