TO: Mayor Thomas J. Weisner
FROM: Alex G. Alexandrou, Chief Administrative Services Officer
DATE: November 13, 2014
SUBJECT: title
A Resolution Authorizing the Renewal Purchase of Property/Boiler-Machinery, Excess Workers Compensation, Crime and Fine Arts Insurance for the Period of December 31, 2014 through December 31, 2015.
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PURPOSE:
To obtain approval of the renewal purchase proposal from broker Wine Sergi, Inc. for Property/Boiler-Machinery, Excess Workers Compensation, Crime and Fine Arts Insurance from Chubb Insurance Company, Hanover Insurance and Safety National Insurance Company for the period of December 31, 2014 to December 31, 2015.
BACKGROUND:
The City has maintained property/boiler-machinery and excess workers compensation insurance from Chubb and Safety National since 1998 and fine arts coverage from Great American since 2011.
DISCUSSION:
Last year, the City retained the services of insurance and risk management consultant Nugent Consulting Group to issue an RFQ and an RFP to qualified brokers for the City's various lines of insurance coverage. Wine Sergi was selected as the broker for property/boiler-machinery, excess workers compensation, crime and fine arts. Based on the renewal results obtained for 2015 and the best coverage combinations recommended for the City's property/boiler-machinery, excess workers compensation, crime and fine arts insurance requirements, the bid proposals obtained by broker Wine Sergi are recommended and attached hereto. Chubb has proposed an increase of 2.6% over expiring 2014 property premium however they are increasing the blanket building and content values by 2.5% while maintaining the crime coverage premium flat. Hanover is replacing Great American for Fine Arts coverage. Safety National has proposed an increase in premium of 14.75% over expiring 2014 excess workers compensation premium due in large part to claims experience and market conditions. In addition, the self-insured retentio...
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