ACTION REQUESTED:
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Communication from the City Manager and Director of Human Resources with a Request to Authorize the City Manager to Renew Existing Liability Coverages with ARGONAUT INSURANCE COMPANY through ARTHUR J. GALLAGHER RISK MANAGEMENT SERVICES, at a One-Year Cost of $306,135.00 and to Add Cyber Liability Coverage with CRUM AND FOSTER INSURANCE, at a Cost of $25,754.00 and Crime Coverage with HANOVER INSURANCE at a Cost of $2,685.00.
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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. In 2020 the broker requested quotes from 13 different companies. The City received two quotes. This year the broker received a renewal quote from Argonaut Insurance Company (incumbent) with a substantial increase, however they were not able to secure any additional quotes comparable to the incumbent. In addition, we received renewal quotes from our existing Crime and Cyber liability carriers but elected to go with Crum and Foster for Cyber at a lower cost for the same coverage.
FINANCIAL IMPACT: Estimated annual cost of $346,934. This cost is broken out into the following: $306,135 for the Liability coverage, $25,754 for Cyber coverage, $2,685 for Crime coverage, and a $12,360 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 $5,000,000 in coverage over each line with a 6,000,000 umbrella. In addition, the City would have $1,000,000 in coverage for Crime and Cyber.
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, a...
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