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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 Property/Boiler Machinery, Excess Workers Compensation, Crime and Fine Arts Insurance for the Period of December 31, 2015 through December 31, 2016.
PURPOSE:
To obtain approval of the purchase proposal from broker Wine Sergi, Inc. for Property/Boiler Machinery, Excess Workers Compensation, Crime and Fine Arts Insurance from Chubb Insurance Company, Safety National Insurance Company and Travelers Insurance Company for the period of December 31, 2015 through December 31, 2016.
BACKGROUND:
The City has maintained property/boiler-machinery/crime and excess workers compensation insurance from Chubb and Safety National respectively since 1998 and fine arts coverage from Hanover since 2014.
DISCUSSION:
Based on the renewal results obtained for 2016 and the best coverage and cost combinations recommended for the City's property/boiler-machinery, crime, excess workers compensation and fine arts insurance requirements, the bid proposals obtained by broker Wine Sergi are recommended and attached hereto. Chubb has proposed a 1.8% increase over expiring 2015 program however they are increasing the blanket building and content values by 3.8% and maintaining the deductible at $50,000. Travelers is replacing Hanover for Fine Arts coverage which will be bundled with Employee Dishonesty/Crime coverage where Travelers is recommended in place of Chubb because of the combination of lower annual premium cost and lower required deductible per claim. Safety National has proposed a 1.2% premium increase over expiring 2015 excess workers compensation premium while maintaining the self-insured retention at $675,000 per claim. Wine Sergi is proposing a 1.8% increase in their broker fee for 2016.
IMPACT STATEMENT:
N/A
RECOMMENDATIONS:
That the City Council approve the resolution authorizi...
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