TITLE
Recommendation to authorize City Manager to purchase, through Aon, the following insurance policies: Excess Municipal Liability insurance for the period of July 1, 2016 through July 1, 2017, for a total premium not to exceed $1,072,380 with Lexington 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, 2016 through June 30, 2017, for a premium not to exceed $78,353 with National Union Insurance Company; and, Aircraft Liability and Hull insurance for police helicopters for the period of June 30, 2016 through June 30, 2017, for a premium not to exceed $39,059 with National Union Insurance Company. The total cost of all of the above liability renewal premiums will not exceed $1,189,792. (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. 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 $1,072,380, which is reduction of approximately 10.4 percent from the expiring policy’s premium. The reduction in premium cost will occur because the self-insured retention is being increased from $3 million to $5 million. In order to obtain the (current) $3 million self-insured retention, the cost would be $1,527,141, a significant increase in premium. Staff recommends the increase in the self-insured retention, due ...
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