TITLE
Recommendation to authorize City Manager to purchase through, Marsh USA, Inc., the following policies: excess municipal liability insurance for the period of July 1, 2012 through July 1, 2013, for a total premium not to exceed $575,000; airport liability insurance for the period of June 30, 2012 through June 30, 2013, for a total premium not to exceed $55,000; and aircraft liability and hull insurance for police helicopters for the period of June 30, 2012 through June 30, 2013, for a total premium not to exceed $50,000. The total cost of all renewal premiums will not exceed $680,000 for the period of July 1, 2012 through July 1, 2013. (Citywide)
DISCUSSION
The City annually purchases excess municipal liability, airport liability, and aircraft liability and hull insurance to cover catastrophic exposures arising from general City operations. This coverage is obtained through the City’s casualty broker of record, Marsh USA, Inc.
This year’s policy for excess municipal liability insurance is expected to provide coverage limits of $25 million in excess of the City’s $3 million self-insured retention. Coverage for eminent domain, medical malpractice, and pollution contamination is excluded from this policy. However, the policy does include $25 million in coverage for unfair employment practices, employee benefits liability, and public officials’ errors and omissions. The renewal premium will not exceed $575,000, which is flat when compared to last fiscal year. Policy limits and coverage are the same as last year’s policy.
The City also maintains limits of $100 million in airport liability coverage and $50 million in coverage for liability resulting from terrorist acts. This policy does not have a deductible and the City does not self-insure any of the airport risks covered under this policy. The policy includes extended coverage for international/domestic terrorist acts under the Terrorism Risk Insurance Act (TRIA). The policy also covers personal i...
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