Memorandum

City of Lawrence

Administrative Service Department

TO:	David L. Corliss – City Manager
FROM:	Michael Bennett – Risk Manager
CC:	Cynthia Wagner – Assistant City Manager Diane Stoddard – Assistant City Manager Jonathan Douglass-Assistant to the City Manager
Date:	May 4, 2010
RE:	May 18,  2010 Insurance Policy Renewals Police Official Liability Public Official Liability Employment Practices Liability

Introduction

On May 18, 2010 at 12:01 a.m., insurance policies for the Police Officer Liability, Public Official Liability and Employment Practices Liability coverage will expire.  Calvin, Eddy and Kappelman is the broker for this coverage.  This memo contains staff’s recommended actions and requests your approval to bind coverage in advance of the expiration. 

I am pleased to recommend renewing all three coverage’s with Scottsdale Insurance for the insurance period of 5/18/10 to 5/18/11.  The overall cost of the insurance policies will rise by less than one percent from the prior plan year; $71,777 to $73,150.13.  This is $1,419.87 less than budgeted for 2010.

Police Officer & Public Official Liability

The policy provides coverage for both tort and civil rights claims.  It is necessary because the protections found in the Kansas Torts Claim Act; K.S.A. 76-6101 do not apply to civil rights violations.  In addition to tort/personal injury claim, this policy would provide coverage for claims of wrongful arrest, excessive use of force, racial profiling  and other constitutional claims that are commonly filed against police officers. 

The same rationale applies for Public Officials Liability.  This policy provides coverage for each public official for actions taken on behalf of the City.  This would include the City Commissioners and executive staff.

The deductible and cap will remain the same as last year; $50,000 and $500,000.

Employment Practices Liability Insurance

This policy provides coverage for any claim brought in a civil proceeding in which monetary damages are sought as a result of wrongful act.  This would include alleged violations of Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991; the American’s with Disabilities Act, Family Medical Leave Act and any other statutory right, except workers compensation, applying to the employer-employee relationship.

The deductible and cap will remain the same as last year; $50,000 and $500,000.

Recommended Action

Staff recommends renewing coverage for Police Officer Liability, Public Official Liability and Employment Practices Liability for the insurance period of 5/18/10 to 5/18/2011 for an estimated premium of $73,150.13.