Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Cynthia Wagner, Assistant City Manager
DATE:	May 8, 2013
RE:	Consent Agenda Item – Renewal of Public Officials Liability and Law Enforcement Liability Insurance Policies

Please place the following item on the May 7 City Commission Consent agenda:

Authorize City Manager to bind coverage for Public Official Liability and Law
Enforcement Liability Insurance Coverage with AIG.

The City’s Public Officials Liability (including Employment Practices Liability) and Law Enforcement Liability insurance policies expire at midnight May 18, 2013.  The city has worked with two insurance brokerage firms to renew these policies and staff recommends renewal with AIG as outlined below.

The current Public Officials Liability policy provides coverage up to $500,000, with deductibles of $25,000 per occurrence relating to public officials acting in their official duties and $50,000 per occurrence for employment practices.  The current Law Enforcement Liability policy provides coverage up to $1,000,000, with a $75,000 deductible level. 

The brokerage firm of Hays Companies of Kansas City worked with AIG to secure a total premium amount of $95,557 for this coverage.  CEK Insurance of Lawrence worked with Scottsdale to secure a total premium amount of $104,662.  Premiums would provide the same levels of coverage and deductibles as currently insured.

These quotes do recommend increases in the total costs for the lines insured, primarily related to an industry-wide increase in law enforcement liability lines as well as a slight increase in the number of covered law enforcement employees.

The City moved from coverage with Scottsdale to AIG for these lines in 2012 and has been pleased with the coverage and staff with whom we work on lines of coverage. Due to these positive working relationships and the fact that the AIG quote is lower than the Scottsdale quote, staff recommends binding coverage for Public Official Liability and Law Enforcement Liability Insurance with AIG in an amount totaling $93,557.