CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the recommendation by Alliant Insurance to award Property, Cyber Liability and Pollution Liability Insurance coverage through the Alliant Property Insurance Program for a one-year term and an amount not to exceed $314,187.77.
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Insurance policies for the City are maintained through Alliant Insurance Services. As the City's insurance broker, Alliant Insurances works on behalf of the City of Naperville to procure options on various insurance policies before providing a final recommendation to the City for approval.
The City's current property insurance policy will expire July 1, 2018. As a client of Alliant, the City uses the Alliant Property Insurance Program (APIP), which is a comprehensive policy structured through a group purchase program providing coverage for the following:
* all-risk, flood and earthquake insurance for the City's buildings, infrastructure and vehicles
* boiler and machinery insurance
* cyber liability
* pollution liability
APIP covers up to $1 billion under a layered and shared framework, which combines the services of more than 20 property insurance carriers to reduce costs while maintaining a sufficient level of protection.
As part of APIP, Alliant also provides the City with two additional policies for cyber liability and pollution liability as an underwritten component. Beazley Syndicate at Lloyd's will serve as the cyber liability carrier and Illinois Union Insurance will serve as pollution liability carrier.
DISCUSSION:
The proposed policy carries a premium of $314,187.77, which is a 9.64-percent increase over last year's plan. The increased costs are due primarily to two variables - an increase to the City's total insured value and an increase in market rates.
The City benefited from relatively low market rates on property insurance the past few y...
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