ACTION REQUESTED:
Title
Communication from the City Manager and Director of Human Resources with a Request APPROVE and 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 $241,926.00, and to add Cyber Liability Coverage with ACE INSURANCE, at a cost of $15,408.00, 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. The broker requested quotes form 13 different companies. The City received two quotes. Argonaut Insurance Company (incumbent) was the lowest most comprehensive quote. In addition, we received renewal quotes from our existing Crime and Cyber liability carriers.
FINANCIAL IMPACT: Estimated annual cost of $272,379. This cost is broken out into the following: $241,926 for the Liability coverage, $15,408 for Cyber coverage, $2685 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 $6,000,000 in coverage over each line with a 5,000,000 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, and Law Enforcement. Operating in this manner 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: N/A
EEO CERTIFICATI...
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