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AI# 10651
Regular City Council Meeting
7.12.
04/26/2022:
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, excess liability insurance coverage from Texas Insurance Company and Upland Specialty Insurance Company, for which the premium amount shall not exceed $909,019.85.
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 is $867,995.00 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 two quotes for this coverage; one from the current carrier, Old Republic Union Insurance Company, for a premium $1,017,782.28, and a second option of layering the coverage. This option offers additional abuse and molestation coverage with Texas Insurance Company and Upland Specialty Insurance Company, for a premium of $909,019.85. Staff recommends layering the coverage for a renewal premium of $909,019.85, at a savings of $108,762.43.
Carriers bind insurance coverage April 1, 2022, 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 for review in Risk Management.
Fiscal Impact
Funds are budgeted in the FY 2021-22 Risk Management Fund.
Staff/Board Recommending
D. Blu Kostelich, Chief Operating Officer
Attachments
Excess Resolution
Excess Liability
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