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 an amount not to exceed $788,006.78 and for a one-year term
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In August 2017, the City Manager awarded Contract 17-040, Insurance Broker Services, to Alliant Insurance Services (Alliant). As the City's insurance broker, Alliant maintains the City's insurance policies. In addition, 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 current property insurance and related policies will expire on July 1, 2022. 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:
1. All-risk, flood and earthquake insurance for the City's buildings, infrastructure, and vehicles;
2. Boiler and machinery insurance;
3. Cyber liability; and
4. 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 Group (Lloyd's) will serve as the cyber liability carrier and Ironshore Specialty Insurance Company will serve as a pollution liability carrier.
DISCUSSION:
Challenging market conditions persist across the insurance industry resulting in significant increases in insurance premiums over the past two years. Insurers continue to experience significant losses as a result of cata...
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