Memorandum

City of Lawrence

Administrative Services – Risk Management

 

TO:

David Corliss – City Manager

 

FROM:

Jennifer Harvey – Risk Manager

 

CC:

Frank Reeb – Administrative Services Director

Cynthia Boecker – Assistant City Manager

Diane Stoddard – Assistant City Manager

Toni Wheeler – Legal Services Director

 

Date:

5/22/2008

 

RE:

Public Entity Insurance Renewal 2008-2009

 

 

Late last week I received a renewal quote from our public entity insurance provider, Scottsdale Indemnity Company through our broker for this coverage, CEK.  This umbrella coverage consists of Public Officials, Employment Practices, and Law Enforcement Liability.  The policy renews on 5/18/2008.   This memo was prepared to present my recommendation regarding renewal of this coverage for the policy year 5/18/2008 to 5/18/2009.  Based upon my discussion with Frank regarding the need to bind the renewal quickly to avoid a period in which we would be bare of coverage,  I did verbally advise our broker to secure a binder on Friday, 5/16/2008.   

 

As the table below illustrates, Scottsdale has agreed to renew our coverage with a minimal increase of .66% ($484) from last year’s premium.  Public Officials coverage did not increase.  Employment liability practices increased by .48% ($77) and Law enforcement liability coverage increased by 1.13% ($407).  This is attributable to an increase in staff/personnel only.  The total quote ($73,777) is below the amount of our 2008 budget ($92,400) for this expenditure by $18,623.  

 

Public Entity

2008/2009 Premium

2007/2008 Premium

Dollar Difference

Percentage Difference

2008 Budget

Public Officials

 $         21,155

 $         21,155

 $                  -

0.00%

 $    25,400

Employment Liability

 $         16,104

 $         16,027

 $               77

0.48%

 $    20,800

Law Enforcement

 $         36,518

 $         36,111

 $             407

1.13%

 $    46,200

Total

 $         73,777

 $         73,293

 $             484

0.66%

 $    92,400

 

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.

 

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