TITLE
Recommendation to authorize City Manager to purchase excess municipal liability insurance for the period of July 1, 2011 through
July 1, 2012, through Marsh USA, Inc., for a total premium not to exceed $575,000;
Authorize City Manager to purchase airport liability insurance for the period of June 30, 2011 through June 30, 2012, through Marsh USA, Inc., for a total premium not to exceed $60,000; and
Authorize City Manager to purchase aircraft liability and hull insurance for police helicopters for the period of June 30, 2011 through June 30, 2012, through Marsh USA, Inc., for a total premium not to exceed $105,000. (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 a small reduction from 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 terrorists 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 injury, malpract...
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