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Presentation of Insurance Options and FY2021 Projections.
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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.
-Changing from OneBeacon to States insurance for FY2020 netted a premium savings of over $170,000, and gave City more autonomy and involvement in claims management.
-In FY2021, City’s deductible reimbursement amount will increase from $100,000 to $150,000 per incident.
Background:
Since 2012, the City of Lee’s Summit has used a risk management program for property and liability matters which is overseen by the Law Department. The program uses a broker relationship for the procurement of insurance products for the City, a defined methodology for requesting competitive quotes for insurance needs, and internal insurance claims management processes and procedures. In addition, the City has a self-insured retention program in lieu of a traditional deductible insurance program. This has resulted in both significant cost savings to the City as well as increased internal control of the City’s risk and loss program, enabling broad internal handling and management of claims and claims processes, resulting in additional cost savings.
In 2019, the City transitioned from a traditional insurance carrier to States Self-Insurers Risk Retention Group, Inc., which is a national insurance risk retention group of public entities who self-insure a portion of their risk and supplement their limits of insurance offered with the purchase of reinsurance. This was done because the City was looking to reduce its costs while still maintaining sufficient coverage to keep the City’s risk management program financially viable. Public entity broad form liability encompasses general liability, employment practices li...
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