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TO: Mayor Thomas J. Weisner
FROM: Alex G. Alexandrou, Chief Administrative Services Officer
DATE: November 13, 2014
SUBJECT:
A Resolution Authorizing the Purchase of Excess Liability and Cyber Liability Insurance for the Period of December 31, 2014 through December 31, 2015.
PURPOSE:
To obtain approval to renew the purchase of Excess Liability Insurance for the period of December 31, 2014 through December 31, 2015.
BACKGROUND:
The City has had in place $20 million dollars worth of excess liability or umbrella insurance coverage with a $2 million dollar self-insured deductible amount as a major component of its overall self-insurance program for liability claims against the City. Last year, after conducting an RFQ and RFP process, National Casualty, Torus National, and Lexington Companies provided the excess and cyber liability insurance coverage. This expiring program inclusive of the premiums, applicable taxes and brokers fee totaled $196,036.00. Arthur J. Gallagher Risk Management Services was the broker for excess liability and cyber liability insurance.
DISCUSSION:
Attached is the premium summary document of all proposals received from Arthur J Gallagher. The premium summary indicates a flat renewal for 2015 with the same coverages as 2014. There were no excess liability or cyber liability claims reported for 2014. The renewal proposal obtained from broker Arthur J. Gallagher is recommended.
IMPACT STATEMENT:
No impact.
RECOMMENDATIONS:
That the City Council approves the resolution authorizing the purchase of excess liability insurance and cyber liability insurance as proposed by broker Arthur J. Gallagher per the attached summary for a total of $196,240.00.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing the Purchase of Excess Liability and Cyber Liability Insurance for the Period of December 31, 2014 through December 31, 2015.
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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 in the best interests of the citizens of Aurora that the City purchase $20,000,000 of excess general liability insurance and purchase cyber liability insurance for the period of December 31, 2014 through December 31, 2015; and
WHEREAS, the proposal from broker Arthur J. Gallagher for coverage through Torus National Insurance Company, National Casualty Insurance Company and Lexington Insurance Company best meets the City's excess liability coverage requirements at the lowest cost. A premium summary is attached hereto for reference.
WHEREAS, the 2015 City Budget provides $196,240.00 for this item in account no. 601-0000-410-40-40.)
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that one (1) year of excess general liability insurance be purchased from National Casualty Insurance Company and Torus National Insurance Company and cyber liability insurance through Lexington Insurance Company through insurance broker Arthur J. Gallagher with a December 31, 2014 effective date of coverage inclusive of premiums and brokerage fees for the total cost of $196,240.00..
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
____________________________ __________________________
Alderman Bohman, Ward 1 Alderman Garza, Ward 2
____________________________ __________________________
Alderman Mesiacos, Ward 3 Alderman Donnell, Ward 4
____________________________ __________________________
Alderman Peters, Ward 5 Alderman Saville, Ward 6
____________________________ __________________________
Alderman Hart-Burns, Ward 7 Alderman Mervine, Ward 8
____________________________ __________________________
Alderman Bugg, Ward 9 Alderman Johnson, Ward 10
____________________________ __________________________
Alderman Irvin, At Large Alderman O'Connor, At Large
ATTEST:
____________________________ __________________________
City Clerk Mayor
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