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AI# 12349
Regular City Council Meeting
5.12.
03/26/2024:
Information
Agenda Item
Resolution - Risk Management:
Consider a resolution authorizing and directing the City Manager to purchase, for and on behalf of the City of Lubbock, property terrorism insurance coverage from Underwriters at Lloyd’s of London, for which the premium amount shall not exceed a rate of $0.0033 per $100 valuation.
Item Summary
Property terrorism insurance provides coverage which protects against the financial ramifications of foreign and domestic threats. In previous years, this coverage has been included in the City’s property coverage. However, this stand-alone policy with a $50,000,000 per occurrence limit and no deductible is more fiscally beneficial to the organization. The City’s current coverage had a premium of $36,724, based on the City’s total insured value of $989,932,289 and covers an 18-month policy period.
Staff recommends continuation of property terrorism insurance coverage from Underwriters at Lloyd’s of London with a policy limit of $50,000,000, same terms for an annual premium of $33,116.92, an increase of 35.27%. Approving this insurance coverage on a rate basis allows the City Manager the ability to add and remove property, as necessary, to maintain an accurate property valuation.
Carriers bind insurance coverage on April 1, 2024, after notification of City Council approval. Insurance policies are issued after premiums are received from the City. The premium for the insurance coverage and the policy are approved by the Texas Department of Insurance as to content. Current insurance policies are available in Risk Management.
Fiscal Impact
Funds are budgeted in the FY 2023-24 Risk Management Fund.
Staff/Board Recommending
D. Blu Kostelich, Chief Financial Officer
Attachments
Resolution - Terrorism
Terrorism Coverage
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