Memorandum
City of Lawrence
Administrative Service Department
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TO: |
David L. Corliss – City Manager
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FROM: |
Michael Bennett – Risk Manager
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CC: |
Cynthia Wagner – Assistant City Manager Diane Stoddard – Assistant City Manager Jonathan Douglass-Assistant to the City Manager
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Date: |
May 7, 2012
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RE: |
2012 Insurance Policy Renewals Police Official Liability Public Official Liability Employment Practices Liability |
Introduction
On May 18, 2012 at 12:01 a.m., insurance policies for the Police Officer Liability, Public Official Liability and Employment Practices Liability (EPLI) coverage will expire.
This department has used multiple brokers to bid these policies. Calvin, Eddy and Kappelman (CEK) of Lawrence, who brokered this policy for several years, and the Hays Companies of Kansas City were the selected brokers. Both CEK and Hays were asked to seek multiple bids for comparison.
Last year, the City switched carriers from Scottsdale Insurance to Chartis/Lexington. The current policy was brokered by the Hays Companies. Service and claims processing has been satisfactory.
This year, Hays provided bids from two carriers, including Chartis/Lexington. CEK did not submit bids for review.
This year we have three new claims that fall under these policies. Based on the activity and hardening of the market, Chartis/Lexington has offered the same coverages for $83,175.48. This is a $7,900 increase over last year’s premium.
Public Officials Policy and Employment Practices Liability Insurance
This policy covers all claims and actions against the City Commissioners and City Management for official policy actions and decisions. The policy has a $25K deductible for all non-employment matters and a $500K cap on damages. Defense costs fall outside the policy limits.
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. Defense costs fall outside the policy limits. I have requested a quote based on $1 million in coverage but have not received the same as of today.
Police Officer’s liability policy
This policy provides coverage for all police department employees for official actions taken during employment including constitutional and civil rights claims. It provides $1 million in coverage with a $75K deductible. Costs of defense fall within the policy limits.
Recommended Action
Staff recommends renewing coverage with Chartis/Lexington for Police Officer Liability, Public Official Liability and Employment Practices Liability for the insurance period of 5/18/2012 to 5/18/2013 for an estimated premium of $83,175.48.
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1999-2000 |
2000-2001 |
2001-2002 |
2002-2003 |
2003-2004 |
2004-2005 |
2005-2006 |
2006-2007 |
2007-2008 |
2008-2009 |
2009-2010 |
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Insurer |
C N A |
C N A |
C N A |
Travelers |
Travelers |
St.Paul-Travelers |
Affiliated FM |
Affiliated FM |
Affiliated FM |
Affiliated FM |
Affiliated FM |
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Insured Schedule Property Value Total |
$ 108,325,729 |
$128,670,158 |
$136,270,158 |
$180,335,089 |
$190,502,081 |
$196,153,717 |
$204,444,292 |
$223,136,236 |
$234,501,775 |
$244,483,616 |
$260,164,21 |
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Deductible |
$ 10,000 |
$ 10,000 |
$ 10,000 |
$ 25,000 |
$ 25,000 |
$ 25,000 |
$ 25,000 |
$ 25,000 |
$ 25,000 |
$ 25,000 |
$25,000 |
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Rate per $100 Scheduled Property Value |
0.0395 |
0.0407 |
0.0489 |
0.0666 |
0.0714 |
0.0725 |
0.0580 |
0.0538 |
0.0517 |
0.045 |
0.045 |
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Premium |
$ 42,824 |
$ 52,305 |
$ 66,631 |
$ 120,026 |
$ 135,985 |
$ 142,206 |
$ 118,500 |
$ 120,000 |
$ 121,227 |
$ 114,018 |
$113,020 |
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|
1999-2000 |
2000-2001 |
2001-2002 |
2002-2003 |
2003-2004 |
2004-2005 |
2005-2006 |
2006-2007 |
2007-2008 |
2008-2009 |
2009-2010 |
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C N A |
National Indemnity |
National Indemnity |
National Indemnity |
VFIS |
VFIS |
ESIP |
ESIP |
ESIP |
VFIS |
ESIP |
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Auto/Professional Liability |
$ 40,909 |
$ 107,171 |
$ 140,000 |
$ 182,000 |
$ 63,397 |
$ 66,802 |
$ 51,988 |
$ 43,685 |
$ 48,330 |
$ 60,427 |
$58,947 |
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Portable Equipment (Inland Marine) & Engineering fee |
Auto Policy Only |
Auto only policy |
Auto only policy |
Auto only policy |
Not Elected |
Not Elected |
Not Elected |
$ 9,544 |
$ 11,667 |
$4,000 |
$4,000 |
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Premium |
$ 40,909 |
$ 107,171 |
$ 140,000 |
$ 182,000 |
$ 63,397 |
$ 66,802 |
$ 51,988 |
$ 53,229 |
$ 59,997 |
$ 64,427 |
$62,947 |
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Brokerage Fee |
Percentage of premium |
Percentage of premium |
Percentage of premium |
Percentage of premium |
$ 10,000 |
$ 10,500 |
$ 14,000 |
$ 15,000 |
$ 15,575 |
$ 16,510 |
$16,510 |
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Total |
$ 40,909 |
$ 107,171 |
$ 140,000 |
$ 182,000 |
$ 73,397 |
$ 77,302 |
$ 65,988 |
$ 68,229 |
$ 75,572 |
$ 80,936 |
$78,457 |