HomeMy WebLinkAbout1991-12-10 - AGENDA REPORTS - INS RENEWAL 1991 92 POLICY (2)t ./
CONSENT CALENDAR
DATE: December 10, 1991
SUBJECT: Insurance Renew
DEPARTMENT: City Manage
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BACKGROUND
AGENDA REPORT
City Manager Approval
Item to be presented by:
Terri Maus
1991-92 Policy Year
This item is on the agenda for confirmation of the proposed insurance coverages
for the 1991-92 policy year.
In order to procure coverages for the 1991-92 policy year, specifications were
prepared. The specifications were then taken to the insurance markets to obtain
policy forms as well as premium quotations. Programs were presented from our
present broker Antelope Valley Insurance as well as Marsh & McLennan working as
a co -broker on behalf of Knollwood Insurance.
A comparison of the two proposals are represented on the attachment.
Presently, the City maintains a general liability insurance program which
addresses general liability coverages, errors and omissions, and automobile
coverages. The general liability is layered to a total of 10 million per
occurrence without an aggregate and is contingent upon a $250,000 self insured
retention. In addition to liability insurance, the City maintains property
insurance for all assets.
The City's overall insurance profile, does not substantially differ from that of
1991. Factors which have however impacted our premiums are:
Increases in the operating budget
Addition of roadway as a result of annexations
Payroll increases
The addition'of 15 vehicles
Proposed aquisition of the present City Hall facility
As a result of a review of information set forth in the specifications, it is
recommended that the City continue to utilize Antelope Valley Insurance for
brokerage services and procure insurance as outlined within their proposal.
Through maintaining this form of coverage, the City is ensuring continuity in
its overall insurance program. In addition the City will have the desired level
of coverage and a continuing relationship with our highly respected claims
administration company of Carl Warren and Company. Finally the City will again
receive the benefits associated with dealing with a firm that has tremendous
experience in servicing municipalities and other public agencies.
appG�OdCDp�
idem.
Agenda
RECOMMENDATION
That the City Council authorize the City Manager to procure the types and levels
of coverage represented in the Antelope Valley Insurance Agency Proposal.
General Liability
ANTELOPE VALLEY
INSURANCE AGENCY
$120,000 Premium
$1MIL NO AGGREGATE
$250,000 SIR
$10MIL excess
$ $0,000 Premium
MARSH & McLENNAN
via KNOLLWOOD
DISCOVER/RE/CHUBB
$112,500 Premium
$5MIL AGGREGATE
$250,000 SIR
$5MIL excess
$50,000 Premium.*
In regards to the two liability policies, Antelope Valley Insurance Agency,
through The Insurance Company of the West, is presenting a form that allows
for 10 million per occurence. _The -Discover Re form with an aggregate may
limit the amount of coverage available in -one year. There is a trade off
between the forms of coverage. The ICV allowed for a number of large claims
while the Discover Re form allows for a variety of small claims to be filed up
to the 5 million layer.
Auto liability $53,000
1st dollar Coverage
Errors and Omissions Included
Boiler & Machinery
Property
Fees, & Commissions
Total Cost
PROS /
10 Mil Per
Occurence
Premium
Guaranteed
$ 3,402
$34,000
Included
$44,000
$24,000
$ 5,204
$17,000
$21,000
$ 290.402 $273.704
CONS
Pay Additional $
for coverage up front
Pay more for premium
PROS / CONS
Pay Less $ Premiums Not
for coverage Guaranteed
Policy forms
not readily
available
Policy forms
available for
review
Able to continue
association with
Carl Warren & Co
as 3rd party administrators
Considerable experience
writing cities
Respected
firm
Ability to use
local broker