Memorandum

City of Lawrence

Administrative Services – Risk Management

 

TO:

David Corliss – City Manager

 

FROM:

Jennifer Harvey – Risk Manager

 

CC:

Frank Reeb – Administrative Services Director

Debbie Van Saun – Assistant City Manager

Toni Wheeler – Legal Services Director

 

Date:

5/10/2007

 

RE:

Public Entity Insurance Renewal 2007-2008

 

 

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 policy will expire at 12:00am on 5/18/2007.   This memo has been prepared to present my recommendation regarding renewal of this coverage for the policy year 5/18/2007 to 5/18/2008. 

 

As the table below illustrates, Scottsdale has agreed to renew our coverage with a decrease of 1.3% (-$965) from last year’s premium.  Public Officials coverage increased by 4.7%, ($950).  Employment liability practices increased by 5.33% ($811).  Law enforcement liability coverage saw a decrease of 7.020% (-$2,726).  The total quote ($73,393) is below the amount of our 2007 budget ($88,000) for this expenditure by $14,607.  

 

Public Entity

2006/2007 Premium

2007/2008 Premium

Dollar Difference

Percentage Difference

2007 Budget

Public Officials

 $     20,205

 $     21,155

 $      950

4.70%

 $24,200

Employment Liability

 $     15,216

 $     16,027

 $      811

5.33%

 $19,800

Law Enforcement

 $     38,837

 $     36,111

 $   (2,726)

-7.02%

 $44,000

Total

 $     74,258

 $     73,293

 $     (965)

-1.30%

 $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.  With your approval I will bind coverage for renewal effective 5/18/2008. 

 

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