Memorandum
City of Lawrence
City Manager’s Office
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To: |
Tom Markus, City Manager |
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CC: |
Diane Stoddard, Assistant City Manager Casey Toomey, Assistant City Manager Brandon McGuire, Assistant to the City Manager Angela Navarro, Risk Management Specialist |
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FROM: |
Gary Cooper, Risk Manager |
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DATE: |
June 8, 2016 |
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RE: |
7/1/2016
to 7/1/2017 RENEWAL for the City of Lawrence |
Background
The City maintains a $350 million property limit policy insuring 205 property locations, along with $50 million of flood and $50 million of earthquake coverage, with the Hartford Insurance Companies and AJ Gallagher brokerage.
The City also maintains an Emergency Service Organization Package policy including liability and physical damage on Fire and EMT operations and equipment with the Arch Insurance Company through Mc Neil & Company wholesaler and AJ Gallagher brokerage.
Renewal Process
The City’s broker advised that we renew with the Hartford and Arch Insurance Companies. The market for public entity property coverage revolves around seven carriers. The Hartford is a carrier for this coverage offering the lowest rates. Arch provides competitive coverage and competitive rates for our fire operations and equipment policy which also renews at the same time.
The expiring premium for the 7/1/2015 to 7/1/2016 property policy is $162,086. The property policy renewal premium for the 7/1/2016 to 7/1/2017 policy period is $164,820, an increase of 1.6%. This increase includes a 3.0% building value increase for the 205 city properties being insured. The expiring premium for the 7/1/2015 to 7/1/2016 Emergency Service Organization Package policy is $57,558. The renewal premium for the 7/1/2016 to 7/1/2017 policy is $61,299, an increase of 9.6%. The total expiring premium for both policies is $219,644. Both policies will renew at $226,119 for an overall increase of 2.8%. The premium increase is due to new fire equipment purchased during the expiring policy period as well as a slight increase in city property values.
Recommended Action
Staff recommends renewing coverage for the 2016 to 2017 policy period with the Hartford and Arch Insurance Companies for the Property Policy at $164,820 and for the Emergency Service Organization Package policy at $61,299. The total for both policies is $226,119.