ACTION REQUESTED:
Title
Communication from the City Manager and Human Resource Director with a Request to APPROVE the Renewal of Existing Liability Coverages with ARGONAUT (Alteris) through Arthur J. Gallagher Risk Management Services at a One-Year Cost of $164,222.00, and to Add Cyber Liability Coverage with ACE INSURANCE at a cost of $12,643.00, and Crime Coverage with HANOVER INSURANCE at a Cost of $2,597.00.
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BACKGROUND: The Human Resources Department requested that our existing broker of record, Arthur J. Gallagher, request 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 coverage the last time we bid, provided a rate stabilization guarantee which protects the City from large premium increases in future renewals. Staff recommends that cyber liability and crime coverage be added 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 $191,462. This cost consists of the following: $164,222 for the liability coverage, $12,643 for cyber coverage, $2597 for crime coverage, and a $12,000 broker fee.
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: The City will 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 liability.
IMPACT IF DENIED: The City will operate with significant exposures in all areas of liability to include, general liability, auto, public officials, employment practices, public entity management, and law enforcement. Operating in this matter could result in exhausting our reserves and tapping into the general fund should the City be faced with a large catastrophic event or lawsuit.
ALTERNATIVES: None.
EEO CERTIFICATION NUMBER: 03047-180630
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.
2. Support sustainability.
DEPARTMENT: Human Resources