ACTION REQUESTED:
Title
Communication from the City Manager and Director of Human Resources with a Request to APPROVE a One-Year Renewal of the Existing Liability Coverages with ARGONAUT (ALTERIS) through ARTHUR J. GALLAGHER RISK MANAGEMENT SERVICES, in the amount of $167,471.00, Add Cyber Liability Coverage with ACE INSURANCE, in the Amount of $13,784.00, and Crime Coverage with HANOVER INSURANCE, in the Amount of $2,597.00.
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BACKGROUND: The City’s Risk Management Office had our existing Broker of Record; Arthur J. Gallagher go to market and secure renewal quotes on our lines of Liability coverage to include General Liability, Employment Practices, Law Enforcement, Public Entity Management, Employee Benefits and Auto liability. Argonaut (Alteris), in addition to being the lowest cost program the last time we bid, gave us a Rate Stabilization guarantee which protects the City from a large premium increases in future renewals. Staff is recommending adding Cyber Liability and Crime coverage to our existing policy to further protect the City from other types of claims such as computer and fund transfer fraud, forgery, and money and securities theft.
FINANCIAL IMPACT: Estimated annual cost of $195,852. This cost is broken out into the following: $167,471 for the Liability coverage, $13,784 for Cyber coverage, $2597 for Crime coverage, and a $12,000 broker fee.
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: The City of Peoria would have various lines of Liability coverage with a $1,000,000 self-insured retention and $11,000,000 in coverage over each line. In addition, the City would have $1,000,000 in coverage for Crime and Cyber.
IMPACT IF DENIED: The City of Peoria would not have various lines of Liability coverage with a $1,000,000 self-insured retention and $11,000,000 in coverage over each line. In addition, the City would not have $1,000,000 in coverage for Crime and Cyber.
ALTERNATIVES: Operate without insurance with the possibility of having any one claim exhaust our reserves.
EEO CERTIFICATION NUMBER: 03047-200630
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
DEPARTMENT: Human Resources