Title
AN ORDINANCE APPROVING THE FY2018 PROPERTY AND LIABILITY INSURANCE PROGRAM AND AUTHORIZING THE CITY MANAGER TO ENTER INTO AGREEMENTS WITH CNA INSURANCE, ONE BEACON INSURANCE, AND PHYSICIANS PROFESSIONAL INDEMNITY ASSOCIATION FOR THE PROCUREMENT OF PROPERTY AND LIABILITY INSURANCE COVERAGE FOR FY2018. (F&BC 6/5/17)
Body
Issue/Request:
AN ORDINANCE APPROVING THE FY2018 PROPERTY AND LIABILITY INSURANCE PROGRAM AND AUTHORIZING THE CITY MANAGER TO ENTER INTO AGREEMENTS WITH CNA INSURANCE, ONE BEACON INSURANCE, AND PHYSICIANS PROFESSIONAL INDEMNITY ASSOCIATION FOR THE PROCUREMENT OF PROPERTY AND LIABILITY INSURANCE COVERAGE FOR FY2018.
Key Issues:
• Each year the City Council considers and approves the City’s property and liability insurance program.
• Overseen by the Law Department since 2012, the City has enjoyed reduced premium and claim expenses and has increased autonomy and flexibility in the claims management process.
• City’s incumbent carrier since 2011 for liability insurance has been One Beacon Insurance. The City has built and maintained a positive relationship with the carrier, which has contributed to the autonomy and flexibility that it currently enjoys.
• One Beacon Insurance, the City’s incumbent carrier for liability insurance, is being recommended for renewal for FY2018 with a rate decrease of 3% on the general liability portion of the policy, and a 2% decrease on the automobile and umbrella portions of the policy. One Beacon has also offererd the City a rate guarantee for three years, as long as the City's loss ratio does not exceed 50% in any 12 month period. The City would have the option to choose whether to continue coverage each year, so the rate guarantee does not lock the City in to continuing coverage for three years; rather, it allows the City the conditional opportunity to have the guaranteed rate for those years should we opt to continue coverage through One Beacon. This coverage still includes the $500,000.00 stop loss.
• Ci...
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