06-21-2011 - Placement of Property Insurance for FY 2011/12 - Item 8 (2).docTO: Andrew G. Pasmant, City Manager
and City Council
FROM: Erin Patricia Hoppe
Risk Manager
SUBJECT: PLACEMENT OF PROPERTY INSURANCE FOR FY 2011/12
RECOMMENDATION:
It is recommended the City Council approve renewing the City’s property insurance coverage for FY 2011/12 with Hartford Fire Insurance Company, at a cost of $41,916.
DISCUSSION:
On July 1, 2011, the City’s property insurance policy is due for renewal. This policy provides protection for approximately $76 million worth of City owned buildings against loss from
fire, business interruption, vandalism, or equipment breakdown. Unlike the City’s General Liability and Workers’ Compensation insurance coverage, this coverage is not part of and has
never been placed thru the Big Independent Cities Excess Pool.
The City’s 2010-2011 Property Insurance Policy was placed with Hartford, an A/XV Best Rated Carrier. That coverage provided for a $10,000 deductible per occurrence for all risks including
terrorism, excluding earthquake and flood, for a total premium of $40,320.
The City’s broker, AON, obtained a very favorable quote to renew the City’s existing coverage for 2011/12, again with Hartford, for $41,916. This is $1,596 higher than 2010/11 and includes
all updated property values.
Commonwealth Insurance Company also provided a quote, however they were unable to match the coverage provided by Hartford.
FISCAL IMPACT:
Monies have been allotted in the 2011/12 budget to cover renewal of this coverage. This amount, $41,916, represents a $1,596 increase over last year’s premium of $40,320 to provide
the same level of coverage.
Prepared by:
____________________________
Erin Patricia Hoppe
Risk Manager