TITLE
Recommendation to authorize City Manager to purchase “all risk” property insurance for City buildings, contents, and vehicles through the Alliant Insurance Service’s Public Entity Property Insurance Program, for a total premium not to exceed $767,000 for the period of July 1, 2013 through July 1, 2014. (Citywide)
DISCUSSION
The Department of Human Resources requests City Council authorization to renew and extend “all risk” property insurance coverage for City buildings and contents.
Through its property insurance broker, Alliant Insurance Services, the City annually purchases “all risk” property insurance to cover perils such as fire, vandalism and wind on all City buildings, contents, and vehicles. The proposed “all risk” property insurance policy provides replacement cost coverage with limits of up to $1 billion, subject to a $50,000 per occurrence deductible for named perils, and a limit of $10 million in coverage for flood; it does not include coverage for the peril of earthquake. The policy also provides cyber liability coverage, boiler and machinery coverage, and some limited pollution coverage for the City. This is consistent with coverage provided in the current year policy. Based on the City’s current insured property valuation, the premium is increasing by approximately 16 percent when compared to last year’s premium of $662,635. The increase is due to underwriting losses from Super Storm Sandy and recent City claim losses. The property insurance for the Queen Mary makes up approximately 35 percent of the total premium. The premium portion for the Queen Mary is billed directly to the current lessee.
This matter was reviewed by Deputy City Attorney Amy Webber May 29, 2013 and by Budget Management Officer Victoria Bell on June 3, 2013.
TIMING CONSIDERATIONS
City Council action is requested on June 18, 2013, to allow the City to officially bind insurance coverage by the renewal date of July 1, 2013.
FISCAL IMPACT
The total premium wil...
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