TITLE
Recommendation to authorize City Manager, or designee, to purchase, through Alliant Insurance Services, Excess Municipal Liability Insurance, for the period of September 1, 2019 to July 1, 2020, at a premium not to exceed $1,605,000; and
Increase appropriation in the Insurance Fund Group in the Human Resources Department by $431,908, offset by funds available. (Citywide)
DISCUSSION
The City annually purchases excess municipal liability insurance to provide financial protection against high exposure liability claims. At its June 18, 2019 meeting, the City Council approved a two-month extension of the July 1, 2018 to July 1, 2019 excess insurance policies, to enable the City’s broker, Alliant Insurance Services, to further explore the excess liability insurance marketplace.
Currently, the City purchases $50 million in excess municipal liability insurance coverage, excess of a $5,000,000 Self-Insured Retention (SIR) for City risks other than law enforcement, and a $7,000,000 self-insured retention for law enforcement. This year’s policies for excess municipal liability insurance will provide limits of $45 million, excess of a $10,000,000 SIR for all risks. Coverage for eminent domain, medical malpractice, and pollution contamination is excluded. However, the policies include some coverage for unfair employment practices, employee benefits liability, and public officials’ errors and omissions. The renewal premium for a ten-month period is estimated not to exceed $1,605,000. The proposed premium represents a prorated increase of approximately 67 percent as compared to the expiring insurance policies. The premium increase is due to concerns with California municipal liability risk, police risk nationwide, and several recent large liability losses incurred by the City. As the insurance companies offering proposals do not want to provide insurance at a lower SIR, staff recommends the increase in the SIR. The recommended coverage has a SIR of $10,000,000 per ...
Click here for full text