Title
An Ordinance approving the FY2023 Property And Liability Insurance Program, authorizing the City Manager to enter into Agreements with CNA Insurance, States Self-Insurers Risk Retention Group, Glatfelter Insurance Group, Chubb Limited, and Traveler’s Insurance for the procurement of property and liability insurance coverage and related services for FY2023, and authorizing the City Attorney to approve individual claim expenses and/or settlements in amounts not to exceed $20,000.00 per claim. (F&BC 6/6/22)
Body
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.
• In 2019, the City changed carriers for its liability coverage from OneBeacon to States Self-Insurers Risk Retention Group, Inc. (“States”) to reduce premium costs and give City more autonomy and involvement in claims management
• States is being recommend for renewal with a rate increase of 2%. The City’s excess liability coverage will remain at $10,000,000 in coverage.
• Glatfelter Insurance Group, the City’s incumbent carrier for auto physical damage coverage with a rate of $55,196.
• City’s incumbent carrier for property insurance, CNA, is being recommended for renewal with rate per $100 in property value increase of approximately 10%.
• The City's incumbent carrier for crime insurance, Traveler's Insurance, had a 4% decrease.
• The cost for cyber liability insurance throughout the market continues to increase substantially to catch-up with payouts, but the City’s projected premiums are still below the budgeted amount.
• The total premium costs for FY2023 for all lines of relevant property and liability insurance would not exceed $714,000.00, which is a total increase of about 9% over FY2022 premiums, most of which is attributable to the property i...
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