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AI# 11410
Regular City Council Meeting
6.7.
03/07/2023:
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, layered excess liability insurance coverage (the Program) from Texas Insurance Company (35.7% of the Program) and Upland Specialty Insurance Company (64.3% of the Program), for which the premium amount shall not exceed $376,591 and $677,872, respectively.
Item Summary
Excess liability insurance provides additional liability limits that are in excess of the package liability policies for the following: General liability; Auto liability; Employment practices liability; Employee benefits liability; Law enforcement liability; and Public officials errors and omissions liability.
The current insurance carrier is Old Republic Union Insurance Company. The current annual premium for is $909,019 for $7,000,000 of coverage per occurrence and aggregate of $14,000,000 of annual aggregate coverage.
The City’s broker was able to secure a layered program for this coverage; 35.7% from Texas Insurance Company for a premium not to exceed $376,591, and 64.3% from Upland Specialty Insurance Company for a premium not to exceed $677.872, for $7,000,000 of coverage per occurrence and an aggregate limit of $14,000,000. This option offers additional abuse and molestation coverage as well as pollutant liability coverage. Staff recommends this coverage for a renewal premium not to exceed $1,054,463 which is an increase of 16%.
Carriers bind insurance coverage April 1, 2023, after notification of City Council approval. Insurance policies are issued after premiums are received from the City. The policy for the insurance coverage is approved by the Texas Department of Insurance as to content. Current insurance policies are available in Risk Management.
Fiscal Impact
Funds are included in the FY 2022-23 Risk Management Fund
Staff/Board Recommending
D. Blu Kostelich, Chief Financial Officer
Attachments
Excess Resolution
Excess Liability
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