Memorandum
City of Lawrence
City Manager’s Office
To:
CC: |
Diane Stoddard, City Manager
Casey Toomey, Toni Wheeler, Brandon McGuire, Angela Navarro |
FROM: |
Gary Cooper, Risk Manager |
DATE: |
June 12, 2015 |
RE: |
7/1/2015
to 7/1/2016 RENEWAL for the City of Lawrence |
Background
The City maintains a $340 million property limit policy insuring 204 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 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 the property coverage revolves around eight 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 7/1/2014 to 7/1/2015 property policy is $157,192. The property policy renewal premium for the 7/1/2015 to 7/1/2016 policy period is $162,086, an increase of 3.1%. This increase includes a 3.0% building value increase for the 204 city properties being insured. The expiring premium for the 7/1/2014 to 7/1/2015 Emergency Service Organization Package policy is $58,697. The renewal premium for the 7/1/2015 to 7/1/2016 policy is $57,558, a decrease of 1.9%. The total expiring premium for both policies is $215,889. Both policies will renew at $219,644 for an overall increase of 1.7%. The premium increase is due to the 204 property values increasing by 3.0%.
Recommended Action
Staff recommends renewing coverage for the 2015 to 2016 policy period with the Hartford and Arch Insurance Companies for the Property policy at $162,086 and for the Emergency Service Organization Package policy at $57,558. The total for both policies is $219,644.