cover
TO: Mayor Thomas J. Weisner
FROM: Alex Alexandrou, Chief Administrative Services Officer
DATE: November 30, 2015
SUBJECT:
A Resolution Authorizing the Purchase of Excess Liability and Cyber Liability Insurance for the Period of December 31, 2015 through December 31, 2016.
PURPOSE:
To obtain approval to purchase Excess Liability and Cyber Liability Insurance for the period of December 31, 2015 through December 31, 2016.
BACKGROUND:
Since 2000, 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 handling liability claims against the City. For 2015, 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 $196,240.00. Arthur J. Gallagher Risk Management Services was the broker for excess and cyber liability insurance. There were no excess liability or cyber liability claims reported for 2015.
DISCUSSION:
After further discussion with the broker and review of the City’s overall self-insured liability program, expansion of the $20 million dollar excess limit was evaluated and additional bids were obtained beyond renewal of the existing program. As a result, for 2016, the City is able to increase its excess liability coverage limit from $20 million to $35 million while retaining the same $2 million dollar deductible for an additional $37,929.00 above expiring program cost ($234,169 vs. $196,240). This is inclusive of all premiums, taxes, brokers fee and terrorism coverage cost. Attached is the proposed program structure and insurance company ratings. All are highly rated in terms of financial strength, size and market position. The renewal proposal obtained from broker Arthur J. Gallagher is recommended.
IMPACT STATEMENT:
N/A
RECOMMENDATIONS:
That the City Council approve the resolution authorizing the purchase of excess liability and cyber liability insurance as proposed by broker Arthur J. Gallagher per the attached summary for a total of $234,169.00.
cc: Alderman O’Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, 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, 2015 through December 31, 2016.
body
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 an the best interests of the citizens of Aurora that the City purchase $35,000,000 of excess general liability insurance and purchase cyber liability insurance for the period of December 31, 2015 through December 31, 2016; and
WHEREAS, the proposal from Arthur J. Gallagher for coverage through National Casualty Insurance Company, Torus National Insurance Company, Endurance American Insurance Company and Illinois National Insurance Company best meets the City's excess liability and cyber liability coverage requirements at the lowest cost. A Premium summary is attached hereto for reference
WHEREAS, the 2016 City Budget provides $234,169.00 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, Torus National Insurance Company and Endurance American Insurance Company and cyber liability insurance through Illinois National Insurance Company through insurance broker Arthur J. Gallagher with a December 31, 2015 effective date of coverage inclusive of premiums and brokerage fees for the total cost of $234, 169.00.