cover
TO: Mayor Robert J. O'Connor
FROM: Alex Alexandrou, Chief Administrative Services Officer
DATE: December 6, 2016
SUBJECT:
A Resolution Authorizing Purchase of Property/Boiler Machinery, Inland Marine, Employee Dishonesty/Crime, Excess Workers Compensation and Fine Arts Insurance for the Period of December 31, 2016 through December 31, 2017
PURPOSE:
To obtain approval of the proposal from broker Wine Sergi, Inc. for Property/Boiler Machinery and Inland Marine insurance from Chubb Insurance Company, Excess Workers Compensation insurance from Safety National Casualty Insurance, Employee Dishonesty/Crime insurance from Travelers and Fine Arts Insurance from Hanover Insurance Company for the period of December 31, 2016 through December 31, 2017.
BACKGROUND:
The City maintains these types of insurance coverages as part of its overall insurance and risk management program including self-insured retention levels. For 2016 the City purchased Property/Boiler Machinery, Inland Marine and Employee Dishonesty/Crime coverage from Chubb, Excess Workers Compensation Insurance from Safety National and Fine Arts coverage from Travelers.
DISCUSSION:
After review of our current self-insured program and the insurance marketplace, Wine Sergi solicited additional bids beyond renewal of the existing program. For Property markets, Chubb, Travelers, Hartford and CNA were solicited. Based on expiring property rates, the other carriers could not match or better the current Chubb rates for the City. Chubb is proposing a 1.1% increase over 2016 while maintaining the deductible at $50,000 and increasing blanket building and content values by 2%. For Excess Workers Compensation markets, Safety National, Midwest Employers Casualty and AIG were solicited. Only Safety National would offer Self Insured Retentions' under $1 million per claim at this time. Safety National is proposing an 8.2% increase over 2016 while maintaining the deductible per claim at $675,000. For Crime mark...
Click here for full text