R2013-98 ACCEPTING THE BID AND AUTHORIZING CONTRACT WITH LANCER INSURANCE CO. AND ADMIRAL INSURANCE CO.

Home Browse Search

Mass Transit Memorandum No. 090913-1 September 9,2013 TO: Honorable Mayor McElroy and City Council Members FROM: Ryan McCrady, City Manager Paul McChancy, Mass Transit Administrator SUBJECT: Transit Liability Insurance and Claims Handling Services SUMMARY Staff recommends that Council adopt a Resolution awarding the RECOMMENDATION: annual contract for Transit System liability insurance and claims handling services to Lancer Insurance Co. and Admiral Insurance Co. BACKGROUND: Staff sought bids for a firm to provide liability insurance and claims handling services for the Transit System for one year. The requested insurance would provide minimum coverage of $1,000,000 per occurrence for general liability and commercial auto, and would provide a total aggregate limit of $10,000,000 of liability coverage. The City's Self Insured Retention (SIR) was required to be no more than $250,000. The attached Tabulation of Bids gives a' comparison of the four proposals and their premiums that were submitted by two local insurance brokers. Staff reviewed the four proposals and determined that three proposals meet all of Transit's $pecifications and all are from highly rated, national insurance carriers. The fourth proposal failed to provide the required excess liability coverage and it was also the most expensive (Scottsdale Insurance Co.) The proposals were generally the same in what they provided with two important exceptions. First, while the others require a deductible (SIR) of $250,000, the Lancer/Admiral proposal requires an SIR of only$100,000. Second, while the others provide $1,000,000 coverage per occurrence and $10,000,000 total aggregate, the Lancer/Admiral proposal provides $5,000,000 coverage per occurrence and $10,000,000 total aggregate. The Tabulation of Bids shows that the total cost for Lancer/Admiral is $155,755. That includes the estimated cost of claims handling (TPA) and $650 for the cost of securing an $1251,000 Letter of Credit, as required by this insurance firm. The second lowest bid, by Atlantic Specialty Insurance Co. at $157,795, is $2,040 higher.