CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the recommendation by Alliant Insurance Services to award Excess Liability Insurance coverage to Great American Insurance Company for a one-year term and an amount not to exceed $245,669
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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 works on behalf of the City to procure options on various insurance policies before providing a final recommendation to the City for approval.
The City's excess liability insurance policy expires July 1, 2022. Alliant identified Great American Insurance Company as the best option for the City's insurance needs.
The City maintains a self-insurance policy of up to $2 million against costs associated with bodily injuries, property damage, public officials' errors and omissions, employment practices liability, and personal injury. Excess liability coverage will provide additional protection against the same incidences beyond the City's self-insured policy up to $10 million.
DISCUSSION:
Great American Insurance Company is the City's current excess liability carrier. The proposed policy premium is an 18.6% increase due to overall market conditions. Alliant has found it difficult to find carriers willing to provide policies under the City's current structure. Currently, carriers are not providing coverage with a $10 million limit, even in cases where the entity covers the first $2 million as retention. Alliant explored an alternative approach to combine two $5 million policies to reach the City's desired $10 million in coverage but found prices significantly more than renewing with Great American.
According to Alliant, the liability insurance industry remains in a hard market cycle, which resulted in another year of higher liability premiums. Factors fueling the hard market contin...
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