Memorandum

City of Lawrence

Administrative Services – Risk Management

 

TO:

David Corliss – Interim City Manager

 

FROM:

Jennifer Harvey – Risk Manager

 

CC:

Frank Reeb – Administrative Services Director

Debbie Van Saun – Assistant City Manager

 

Date:

5/5/2006

 

RE:

Public Entity Insurance Renewal 2006-2007

 

 

 

I’ve received a renewal quote from our public entity insurance provider, Scottsdale Indemnity Company.  This umbrella coverage consists of Public Officials, Employment Practices, and Law Enforcement Liability.  The policies will expire at 12:00am on 5/18/2006.   This memo has been prepared to present my recommendation regarding renewal of this coverage for the policy year 5/18/2006 to 5/18/2007. 

 

As the table below illustrates, Scottsdale has agreed to renew our coverage with a decrease of 1.35% ($1,013) from last year’s premium.  Public Officials coverage remained flat from last year.  Employment practices coverage decreased by .9%.  Law enforcement liability coverage saw a decrease as well of 2.20%.  The total premium ($74,258) is below the amount of our 2006 budget ($88,000) for this expenditure by $13,742.  

 

 

Public Entity

2005/2006 Premium

2006/2007 Premium

Dollar Difference

Percentage Difference

2006 Budget

Public Officials

 $     20,205

 $     20,205

 $           -

0.00%

 $24,200

Employment Liability

 $     15,354

 $     15,216

 $     (138)

-0.90%

 $19,800

Law Enforcement

 $     39,712

 $     38,837

 $     (875)

-2.20%

 $44,000

Total

 $     75,271

 $     74,258

 $   (1,013)

-1.35%

 $88,000

 

 

I continue to recommend maintaining our coverage with Scottsdale.  Scottsdale continues to offer the most cost effective and comprehensive coverage.  We do continue to have open claims with them, and they have afforded us the flexibility to use our own counsel in defense.  That in itself is a valuable benefit and affords us considerable claims handling control.  I have bound coverage as our costs are well within budget and wish to ensure no lapse in coverage. 

 

Should you have any questions, please do not hesitate to contact Frank or me.  Thank you for your consideration.