ACTION REQUESTED:
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Communication from the City Manager and Director of Human Resources with a Request to APPROVE and Authorize the City Manager to Renew Existing Liability Coverages with CHUBB INSURANCE COMPANY and BERKLEY INSURANCE through Arthur J. Gallagher Risk Management Services, at a One-Year Cost of $532,430.00, to add Cyber Liability Coverage with CRUM AND FORSTER INSURANCE at a One-Year Cost of $42,061.00, and Crime Coverage with HANOVER INSURANCE at a One-Year Cost of $2,685.00.
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BACKGROUND: The City's Human Resources Department 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. Public Sector is a difficult class of business that has proven to be challenging from a risk and profitability standpoint for insurers and there is a shrinking number of carriers willing to quote governmental agencies. The State of Illinois does not effectively impose tort caps on damages or strengthen governmental immunities causing the state to become one of the least desirable venues in the country to issue policies. The broker requested quotes from 10 different companies including our incumbent. The incumbent carrier has indicated they are leaving the municipal market. The City received one firm quote and five indication quotes. In addition, we received one renewal quote from our existing Cyber liability carrier and five carriers declined to quote Cyber. The City received one quote from the incumbent on Crime coverage with no increase in premium.
FINANCIAL IMPACT: Financials Estimated annual cost not to exceed $589,907. This cost is broken out into the following: $532,430 for the Liability coverage, $42,061 for Cyber coverage, $2685 for Crime coverage, and a $12,731 broker fee.
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: The City of Peor...
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