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TO: Mayor Richard C. Irvin
FROM: Alex G. Alexandrou, Chief Management Officer
Deborah Lang, Deputy Corporation Counsel
DATE: May 1, 2025
SUBJECT:
A Resolution Authorizing the Purchase of Pollution/Environmental Liability Insurance for the Period of April 30, 2025, to April 30, 2028.
PURPOSE:
To obtain approval to purchase Pollution/Environmental Liability Insurance for the period of April 30, 2025, to April 30, 2028.
BACKGROUND:
The City has had in place for the past three (3) years a ten-million-dollar ($10M) pollution liability insurance policy with a $250,000.00 self-insured deductible amount from Allied World Assurance Company (AWAC) as an essential component of its overall self-insurance liability program for any pollution claims against the City. This expiring three (3) year policy inclusive of the premium, applicable taxes, and broker fee totaled $94,110.00.
DISCUSSION:
The City's broker, Hub International, reviewed the existing coverage for adequacy, updated the City's schedule of covered locations and surveyed the market conditions for pollution liability coverage. Nine (9) other markets contacted were either not competitive or could not match or improve the current coverage offered by AWAC. The recommendation is to accept the three (3) year renewal quote from incumbent Allied World Assurance Company (AWAC). Attached as reference is a premium summary and coverage terms. The overall renewal rate is two percent (2%) percent above 2022 levels. In addition, Hub was able to negotiate the addition of automatic grant of coverage for inclusion of newly acquired properties, reduced the across-the-board deductible for all claims to $250,000 and added unscheduled omitted locations to the coverage. AWAC's premium quote inclusive of premium and taxes is $94,110.00. Hub is not charging a broker fee for this transaction. AWAC is highly rated in terms of financial stability and ability to pay claims. $95,800.00 was allocated in 2025 for pollution/envir...
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