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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.
IM...
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