HomeMy WebLinkAbout1992-12-08 - AGENDA REPORTS - INSURANCE RENEWAL 1993 POLICY (2)AGENDA REPORT
City.Manager Approval
Item to be -presented Syt
CONSENT CALENDAR Ken Pulskamp
DATE: December 8, 1992
SUBJECT: Insurance Renewal 1993 Policy Year
DEPARTMENT: City Manager
BACKGROUND
This item is on the agenda for the City Council's authorization to procure
proposed insurance coverages for the 1993 policy year.
In order to obtain coverages for the 1993 policy year, specifications outlining
the needs of the .City were prepared by staff. The specifications were then
taken to the marketplace by our broker, Antelope Valley Insurance, for
quotation. The 1993 policy renewal marks the final year of the three-year
broker of record agreement with Antelope Valley Insurance Agency.
Presently, the City maintains a liability program which addresses:
1. general liability
2. errors and ommissions
3. automobile coverages
The general liability package is layered to $10 million per occurrence without
an aggregate. In addition, a $250,000 self-insured retention is utilized.
Given that the City's overall insurance profile does not differ substantially
from 1992,.changes to the program are not recommended at this time. As you will
recall, staff previously conducted an analysis to evaluate the benefits of
participating in a Joint Powers Association -to pool insurance. This again does
not appear to be advantageous for the 1993 year.
Through maintaining this form and type of coverage, the City is ensuring
continuity of its overall insurance program. Type and levels of coverage
suggested for 1993 are as follows:
*Business Income $ 9,000
*Flood Insurance 10,100
*Fire 5,100
General Liability ($10 mil) 213,200
Property (Valuable Papers,
Autos, Computers, Buildings) 90,500
Steam and Boiler 3,900
*Earthquake 44.000
TOTAL $375,800
The total 1993 premium reflects a $40,000 savings from the 1992 .year. The
savings is attributed primarily to our excellent loss history and decreased need
for reserves.
*required through agreement an PFA bond sale. Agenda Item:T(/�
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That the City Council authorize the City Manager to procure insurance in the
types and level of coverage at a cost not to exceed $375,800.
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