ACTION REQUESTED:
Title
Communication from the City Manager and the 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 $174,869.00 and to Add Additional Crime Coverage at a Cost of $2,597.00.
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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. Argonaut (Alteris), in addition to being the lowest cost program the last time we bid, gave us a Rate Stabilization guarantee which protects the City from a large premium increases in future renewals. Staff is recommending adding Crime coverage 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 $177,466 which represents a 2% increase from the previous years' premium of $171,546 plus $2597 for crime coverage. This cost is broken out into the following: $162,869 for the Liability coverage through Argonaut (Alteris) 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. In addition, the City would have $1,000,000 in coverage for Crime.
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 cata...
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