Memorandum

City of Lawrence

City Manager’s Office

To:	Tom Markus, City Manager
CC:	Diane Stoddard, Casey Toomay, Brandon McGuire, Angela Navarro
FROM:	Gary Cooper, Risk Manager
DATE:	April 19, 2016
RE:	5/18/16 to 5/18/17 RENEWAL Public Officials and Employment Practices Liability Policy

Background

The City maintains a $500,000 liability limit policy including a $75,000 deductible with AIG/National Union Fire Insurance Company and utilizes the Hays Companies of Kansas City as our broker. 

Renewal Process

The City solicited quotes from 10 carriers for our Public Officials and EPL coverage.  In the 2016 renewal process, the City received only two quotes.  One quote is from our current carrier, AIG, and the other quote from ACE GROUP.   The other eight carriers declined to quote, as of the date of this memo.

The expiring premium for the 5/18/15 to 5/18/16 policy was $63,951.  The 5/18/16 to 5/18/17 policy renewal premium is $72,446, a 13% increase.

The AIG increase is due to claims development on the Public Officials and EPL policy stemming from a claim filed on our recent policies.  The City has been with AIG/ National Union Fire for five continuous policy periods.

The City is recommending the renewal policy be placed with ACE GROUP. The ACE renewal is $70,046 or a 9.5% increase.  That is a savings of $2,400 over the AIG quote. The ACE quote also adds some additional coverages and limits not available through the AIG quote and represents good value when compared to the renewal quote from AIG.

Recommended Action

Staff recommends placing coverage with ACE GROUP for the Public Officials and Employment Practices Liability policy at the $70,046 premium amount for the 2016 to 2017 policy period.