ACTION REQUESTED:
Title
Communication from the City Manager and Director of Human Resources with a Request to APPROVE Existing Liability Coverages with CHUBB INSURANCE COMPANY and BERKLEY INSURANCE through Arthur J. Gallagher Risk Management Services, at a One-Year Cost of $616,983.00, and to Add Cyber Liability Coverage with CRUM AND FORSTER INSURANCE, at a Cost of $42,047.00, and Crime Coverage with HANOVER INSURANCE at a Cost of $2,778.00.
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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.
FINANCIAL IMPACT: Estimated annual cost not to exceed $674,921. This cost is broken out into the following: $616,983 for the Liability coverage, $42,047 for Cyber coverage, $2778 for Crime coverage, and a $13,113 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 5,000,000 umbrella. In addition, the City would have $1,000,000 in coverage each 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, and Law Enforcement. Operating in this manner could...
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