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TO: Mayor Richard C. Irvin
FROM: Alex Alexandrou, Chief Management Officer
DATE: December 6, 2017
SUBJECT:
A Resolution Authorizing Purchase of Property/Boiler Machinery, Inland Marine, Employee Dishonesty/Crime, Excess Workers Compensation, Cyber Liability, Excess General Liability/Law Enforcement Insurance and Fine Arts Insurance for the Period of December 31, 2017 through December 31, 2018
PURPOSE:
To obtain approval of the proposal from broker Hub International Midwest Limited for Property/Boiler Machinery and Inland Marine insurance from Chubb Insurance Company, Excess Workers Compensation insurance from Safety National Casualty Insurance, Employee Dishonesty/Crime insurance from Travelers, Excess General Liability/Law Enforcement Insurance from Allied World National Assurance Company, StarStone National Insurance Company and Endurance American Insurance Company, Cyber Liability Insurance from AIG and Fine Arts Insurance from Hanover Insurance Company for the period of December 31, 2017 through December 31, 2018.
BACKGROUND:
The City maintains these types of insurance coverages as part of its overall insurance and risk management program including self-insured retention levels. For 2017 the City purchased Property/Boiler Machinery and Inland Marine from Chubb, Employee Dishonesty/Crime coverage from Travelers, Excess Workers Compensation Insurance from Safety National, Excess General Liability/Law Enforcement Insurance from Allied World National Assurance Company, StarStone National Insurance Company and Endurance American Insurance Company, Cyber Liability Insurance from AIG and Fine Arts coverage from Travelers.
DISCUSSION:
After review of our current self-insured program, the decision was made to consolidate all of our insurance coverages through one broker rather than two brokers. After reviewing the insurance marketplace and discussing various broker options, Hub International Midwest Limited was selected. Hub reviewed our existing program and solicited additional market bids beyond renewal of the existing program. As a result, all of the incumbent carriers are recommended for renewal at the same levels of coverage as 2017. Overall for all program coverages including broker fee the total increase is approximately 1.5% above 2017 ($737,824 vs. $726,559). The broker fee in lieu of commission is the same as 2017. Highlights of the renewal coverages includes increased total property blanket values for City owned properties, a decrease in the premium for 3rd layer of Excess General Liability coverage and no increases in the premiums for Fine Arts, Cyber or Crime coverages. Funds for these insurance coverages are budgeted for in the Property and Casualty Fund budget. Attached for reference are the following documents: Premium Summary, Marketing Results and Program Structure Chart.
IMPACT STATEMENT:
N/A
RECOMMENDATIONS:
That the City Council approve the resolution authorizing the purchase of Property/Boiler Machinery and Inland Marine insurance from Chubb Insurance Company, Excess Workers Compensation insurance from Safety National Casualty Insurance, Employee Dishonesty/Crime insurance from Travelers, Excess General Liability/Law Enforcement Insurance from Allied World National Assurance Company, StarStone National Insurance Company and Endurance American Insurance Company, Cyber Liability Insurance from AIG and Fine Arts Insurance from Hanover Insurance Company for the Period of December 31, 2017 through December 31, 2018 as proposed by broker Hub International Midwest Limited per the attached documentation for $737,824 inclusive of all applicable premiums, taxes and broker fee.
cc: Alderman O’Connor, Chairman
Alderman Bugg
Alderman Mesiacos
Alderman Mervine, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Authorizing Purchase of Property/Boiler Machinery, Inland Marine, Employee Dishonesty/Crime, Excess Workers Compensation, Cyber Liability, Excess General Liability/Law Enforcement and Fine Arts Insurance for the Period of December 31, 2017 through December 31, 2018.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City Council has determined it is the best interest of the citizens of Aurora that the City purchase Property/Boiler Machinery, Inland Marine, Employee Dishonesty/Crime, Cyber Liability, Excess General Liability/Law Enforcement, Excess Workers Compensation and Fine Arts Insurance for the period of December 31, 2017 through December 31, 2018; and
WHEREAS, the renewal proposal from insurance broker Hub International Midwest Limited, for coverage through Chubb Insurance Company for Property/Boiler Machinery and Inland Marine Insurance, Travelers Insurance for Employee Dishonesty/Crime, Safety National Casualty Corporation for Excess Workers' Compensation Insurance, AIG for Cyber Liability Insurance, Excess General Liability/Law Enforcement Insurance from Allied World National Assurance Company, StarStone National Insurance Company and Endurance American Insurance Company and Hanover Insurance for Fine Arts best meets the City's Property/Boiler Machinery, Inland Marine, Employee Dishonesty/Crime, Excess Workers Compensation, Cyber Liability, Excess General Liability/Law Enforcement and Fine Arts Insurance coverage requirements;
WHEREAS, the 2018 City Budget provides $737,824.00 for this item in account numbers 601-0000-410-40-10, 601-0000-410-40-40, and 601-0000-410-40-70.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that one (1) year of Property/Boiler Machinery, Inland Marine, Employee Dishonesty/Crime, Cyber Liability, Excess General Liability/Law Enforcement, Excess Workers Compensation and Fine Arts Insurance policies be renewed and purchased from Chubb Insurance Company, Travelers Insurance, Safety National Casualty Corporation, Allied World National Assurance Company, StarStone National Insurance Company, Endurance American Insurance Company and Hanover Insurance through insurance broker Hub International Midwest Limited, with a December 31, 2017 effective date of coverage for the total cost of $737,824.00.