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TO: Mayor John Laesch
FROM: Brian Caputo - Director of Fiscal Integrity & Operations Management; Deborah Lang - Assistant Corporation Counsel III; Paola Hayes - Risk Management Administrative Aide
DATE: December 11, 2025
SUBJECT:
A Resolution Authorizing Purchase of Fine Arts, Cyber and Excess Cyber Liability, Crime, Special Events Liability, Excess Workers Compensation, and Liquor Liability insurance policies for the period of December 31, 2025, through December 31, 2026.
PURPOSE:
To obtain approval of the proposal from the City of Aurora's insurance broker, HUB International Midwest Limited ("HUB International") to purchase Fine Arts, Cyber and Excess Cyber Liability, Crime, Special Events Liability, Excess Workers Compensation, and Liquor Liability insurance policies for the period of December 31, 2025, through December 31, 2026.
BACKGROUND:
The City has historically maintained these types of insurance coverages as part of its overall insurance and risk management program totaling $35M in overall excess liability coverage excluding self-insured retention level of $2M. The 2023-2024 total program cost, including broker service fee was $2,526, 931.00. Last year's (2024-2025) total program cost, including broker service fee was $3,158,753.00.
DISCUSSION:
Our authorized broker, HUB International, reviewed our existing program and solicited additional market bids beyond renewal of the existing program. Hub conducted a full marketing of the city's Property and Casualty program to more than 20 carriers specializing in Public Entity Insurance. See Exhibit A (HUB Premium Summary). The overall bottom line premiums have decreased by approximately 3.78% or $119,551 over last year's insurance package.
HUB went out and sought quotes from numerous carriers. Exhibit A shows the premium/rates and the overall percentage changes from the prior year. The Exhibit highlights in yellow the exposures for the City which include a 1.96% decrease in total insured property values, an increase in full-time employees, an increase in fleet vehicles, payroll expenses totaling an increase in "net total expenditures" of 5.96%. While the excess portions have increased drastically due to market conditions, HUB was able to negotiate decreases and better rates on other portions of the premiums while maintaining the same coverage for the City.
HUB is recommending a renewal of the casualty lines for our Excess General Liability coverages which would maintain the self-insured retention by the City of Aurora at $2M and have Safety National for the first $5M layer beyond the SIR and then Obsidian participating in the next $10M, Vantage Risk Specialty for the next $5M to $20M. Allied World would have the next $5M layer and Great American would have the next $10M to complete the final layer to $35M total coverage. Attached are Exhibit A through Exhibit D demonstrating the City of Aurora 2026 Limit Structure. Approval of this four-layer coverage structure will maintain the desired excess liability coverage of $35M above the City of Aurora's $2M self-insured retention. The public entity/municipality sector continues to experience severe capacity issues with a shrinking pool of what was already a very short list of variable markets. The increase in premiums reflects the market-driven lack of capacity.
Property - HUB is recommending a renewal with Chubb as they continue to offer a very comprehensive coverage platform with certain coverage items that are not available with competing markets. Chubb will require a 15.50% rate decrease due to market conditions softening.
Overall, the total cost including broker service fee for 2025-2026 is at $3,039,022.00. Funds for these insurance policies are budgeted for in the Property and Casualty Fund budget.
IMPACT STATEMENT:
N/A.
RECOMMENDATIONS:
That the City Council approve the resolution authorizing the purchase from broker HUB International Midwest Limited for:
a. Property/Boiler Machinery insurance from Chubb Insurance Company
b. Fine Arts Insurance from Hanover Insurance Company
c. Cyber Liability Insurance from AIG
d. Excess Cyber from Coalition
e. Crime Insurance from Travelers
f. Special Events Liability from Cincinnati Specialty
g. Drone Liability from American Alternative Insurance Company (AAIC)
h. General Liability/Law Enforcement/Auto Liability from Safety National
i. Excess General Liability/Law Enforcement/Auto Liability Insurance "tower: from the following providers (graphs displayed in Exhibit B :
- Safety National
- Obsidian
- VSIC
- Allied World
- Great American Insurance Company
j. Excess Workers Compensation from Safety National Casualty Insurance
k. Liquor Liability insurance from National Specialty;
for the period of December 31, 2025, through December 31, 2026, for $3,039,022.00 inclusive of all applicable premiums, taxes, and broker service fees.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Authorizing Purchase of Property/Boiler Machinery, Fine Arts, cyber and Excess Cyber Liability, Crime, Special Events Liability, Drone Liability, General Liability/Law Enforcement/Auto Liability, Excess Liability, Excess Workers Compensation, and Liquor Liability insurance policies for the period of December 31, 2025, through December 31, 2026.
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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, Fine Arts, Cyber and Excess Cyber Liability, Crime, Special Event Liability, Drone Liability, General Liability/Law Enforcement/Auto Liability, Excess Liability Compensation and Liquor Liability insurance policies for the period of December 31, 2025, through December 31, 2026, and
WHEREAS, the renewal proposal from insurance broker , HUB International Midwest Limited ("HUB International"), for Property/Boiler Machinery Insurance from Chubb Insurance Company, Fine Arts Insurance from Hanover Insurance Company, Cyber Liability Insurance from AIG, Excess Cyber from Coalition, Crime Insurance from Travelers, Special Events Liability from Cincinnati Specialty Underwriters Insurance Company, UAL Drone Liability from American Alternative Insurance Company ("AAIC"), General Liability/Law Enforcement/Auto Liability from Safety National, Excess General Liability/Law Enforcement/Auto Liability "towers" from Obsidian, Vantage Risk Specialty Insurance Company ("VSIC"), Allied World, and Great American Insurance Company, Excess Workers Compensation insurance from Safety National Casualty Insurance, and Liquor Liability insurance from National Specialty for the period of December 31, 2025, through December 31, 2026.
WHEREAS, the 2023 City Budget provides 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 insurance from:
a. Property/Boiler Machinery insurance from Chubb Insurance Company
b. Fine Arts Insurance from Hanover Insurance Company
c. Cyber Liability Insurance from AIG
d. Excess Cyber from Coalition
e. Crime Insurance from Travelers
f. Special Events Liability from Cincinnati Specialty
g. Drone Liability from American Alternative Insurance Company (AAIC)
h. General Liability/Law Enforcement/Auto Liability from Safety National
i. Excess General Liability/Law Enforcement/Auto Liability Insurance "tower: from the following providers (graphs displayed in Exhibit B :
- Safety National
- Obsidian
- VSIC
- Allied World
- Great American Insurance Company
j. Excess Workers Compensation from Safety National Casualty Insurance
k. Liquor Liability insurance from National Specialty;
for the period of December 31, 2025, through December 31, 2026, through broker HUB International Midwest Limited for $3,039.022.00 inclusive of all applicable premiums, taxes, and broker service fees.