ACTION REQUESTED:
Title
Communication from the City Manager and the Human Resource Director with a Request to Authorize the City Manager to Renew Existing LIABILITY COVERAGES with ALTERIS (ARGONAUT) Through ARTHUR J. GALLAGHER RISK MANAGEMENT SERVICES A ONE, with an Annual Cost of $171,813.00.
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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 quotes on our lines of Liability coverage to include General Liability, Employment Practices, Law Enforcement, Public Entity Management, Employee Benefits and Auto liability. We received quotes from the following carriers:
Alteris (Argonaut)
$159,813
CV Starr
$160,900
National Casualty
$161,795
Brit
$186,000
Travelers
$276,216
Munich
$290,500
Alteris (Argonaut) is recommended as the most comprehensive, cost effective program. In addition to being the lowest cost program, Alteris (Argonaut) gave us a Rate Stabilization guarantee which protects the City from a large premium increases in future renewals.
FINANCIAL IMPACT:
Estimated annual cost of $171,813 which represents an 8% reduction from the previous years' premium of $186,230. This cost is broken out into the following: $159,813 for the Liability coverage through Alteris (Argonaut) 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.
IMPACT IF DENIED: The City of Peoria would 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: Operate without insurance with the possibility ...
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