TITLE
Recommendation to authorize City Manager, or designee, to purchase, through Aon, the following insurance policies: Excess Municipal Liability insurance for the period of July 1, 2017 through July 1, 2018, for a total premium not to exceed $1,161,524 with Allied Insurance Company, Berkeley National Insurance Company, Allied World National Assurance Company, and Navigator’s Insurance Company; Airport Liability insurance for the period of June 30, 2017 through June 30, 2018, for a premium not to exceed $72,751 with National Union Insurance Company; and, Aircraft Liability and Hull insurance for police helicopters for the period of June 30, 2017 through June 30, 2018, for a premium not to exceed $37,300 with National Union Insurance Company, for a total aggregate cost of the liability renewal premiums not to exceed $1,271,575. (Citywide)
DISCUSSION
The City annually purchases excess municipal liability, airport liability, and aircraft liability and hull insurance to cover catastrophic exposures arising from City operations. This coverage is obtained through the City’s casualty broker of record, Aon.
This year’s policy for excess municipal liability insurance will provide coverage limits of $50 million in excess of a $5 million self-insured retention (SIR) for all City departments, other than the Police Department, which will have a $7 million SIR. The $7 million SIR for Police claims is an increase of $2 million from the current policy. There is a significant added premium cost of $752,168 in order to maintain the current $5 million SIR for Police claims. Therefore, staff recommends that the City raise the SIR for Police claims for the next policy year. Coverage for eminent domain, medical malpractice, and pollution contamination is excluded from this policy. However, the policy does include $50 million in coverage for unfair employment practices, employee benefits liability, and public officials’ errors and omissions. The renewal premium will not exceed $1...
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