TITLE
Recommendation to authorize City Manager, or designee, to purchase, through Aon, the following insurance policies: Excess Municipal Liability insurance, at a total premium not to exceed $1,196,690, with Allied Insurance Company, Berkeley National Insurance Company, Allied World National Assurance Company, and Navigator’s Insurance Company; Airport Liability insurance at a premium not to exceed $74,951, with National Union Insurance Company; and Aircraft Liability and Hull insurance for police helicopters at a premium not to exceed $36,500 with National Union Insurance Company, for a total aggregate cost of the liability renewal premiums not to exceed $1,308,141, for the period of July 1, 2018 through July 1, 2019. (Citywide)
DISCUSSION
The City annually purchases excess municipal liability, airport liability, and aircraft liability and hull insurance to cover 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, 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. This is the same coverage as provided in the expiring policy. 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 excess municipal liability premium will not exceed $1,196,690, which is an increase of approximately 3 percent from the expiring policies, due to an increase in City personnel expenses and vehicles.
The City also purchases airport liability coverage. The City received a quote from the current insurance carrier offering limits of $300 million at a premium of $74,951, approximately a 3 percent increa...
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