HomeMy WebLinkAbout1996-02-27 - AGENDA REPORTS - 1996 GEN INSURANCE RENEWAL (2)AGENDA REPORT
ty Manager Approval
Item to be presented by:
Ken Pulskamp
CONSENT CALENDAR
DATE: February 27, 1996
SUBJECT: 1996 POLICY YEAR GENERAL LIABILITY AND PROPERTY
INSURANCE RENEWAL
DEPARTMENT. City Manager's Office
BACKGROUND
This item is on the agenda for renewal of the City's Public Liability and Property Insurance
Policies for the 1996 policy year. Each year, in order to obtain appropriate types and levels of
coverage, the City prepares detailed specifications profiling the City and outlining our insurance
needs. These specifications are then taken to the insurance market via our broker, Antelope
Valley Insurance, for quotation and review. Based on our stable profile, specifications again
referenced the need for $10 million in liability coverage with a self-insured retention (SIR) of
$250,000. The quotation is primarily based on the following factors:
As in the prior policy year, the City received two quotations; one from our present carrier;
Insurance Company of the West, and from Municipal Mutual Insurance Company. Packages
were, however, sent to four other providers.
As noted in the attachment, Municipal Mutual did present an overall cost for liability $6,535
less than that presented by Insurance Company of the West. While cost savings is acritical
APPROVED
Agenda Item:
1996/97 Renewal
Exposure
Population
147,228
Total Operation Budget
52,645,695
CIP Bud et
15,229,653
Street/Road Miles
263 paved miles
Pa oll
13,586,095
Number of Full-time Employees
196
Number of Part-time Employees
8
Number of Vehicles
67
As in the prior policy year, the City received two quotations; one from our present carrier;
Insurance Company of the West, and from Municipal Mutual Insurance Company. Packages
were, however, sent to four other providers.
As noted in the attachment, Municipal Mutual did present an overall cost for liability $6,535
less than that presented by Insurance Company of the West. While cost savings is acritical
APPROVED
Agenda Item:
component to the analysis, the Municipal Mutual policy excludes several items that are covered
within the Insurance Company of the West form. Specifically, the Municipal Mutual policy
excludes the following:
1. Injuries arising from fraudulent or criminal acts.
2. Fire damage, legal liability and property damage to items in the City's care, custody and
control.
3. Total employment practices.
In addition to the policy form review, there are secondary items such as support services that
are required. Currently, the City utilizes the services provided by Insurance Company of the
West for risk management, hazard identification, safety training, and CAL OSHA compliance
on a frequent basis. Such services are provided as a part of the premium presented. While it
appears Municipal Mutual can provide services of this nature, the cost is additional to the
premium quoted.
The Insurance Company of the West liability premium presented for the 1996-97 policy year
reflects a $50,000 savings from 1995 policy and a $91,536 decrease from the 1994 policy year.
Property insurance has, however, increased by $22,997.08 due to a more accurate reflection of
property, as well as acquisition of additional items such as computers, vehicles, etc.
It should also be noted that the City is now conducting an overall review of its insurance
program to ascertain the pros and cons of its current program structure versus that of a shared
of "pooled" insurance program. This will be presented to the City Council in July.
RECOMMENDATION
That the City Council authorize the City Manager to procure the type and level of coverage from
Insurance Company of the West, as specified in Attachment A, at a cost not to exceed
$275,800.00
KRP/9697ins.mtc
Insurance Company
of the West
1995/96 1996/97
ATTACHMENT A
Municipal Mutual
Insurance Company
1996/97
Public Entity Liability $175,928.00 $125,000.00 $118,465.00
$1 Million Primary
$9 Million Excess
Reliance Insurance $118,616.92 $141,614.00 $141,614.00
Company
Property,. glass,
crime, auto, valuable
papers, records,
computers, boiler and
machinery
Reliance Insurance $9,146.35 $9,090.00 $9,090.00
Comoanv
Business Income
Totals $303,690.92 $275,704.00 $269,169.00