Agenda - View Meetings (All) (9465767280)

7.16.

Regular City Council Meeting

Meeting Date:

09/14/2021

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, airport and non-owned aircraft liability insurance coverage from Ace Property and Casualty Insurance Company, for which the premium amount shall not exceed $30,810.

Item Summary

Airport liability insurance covers liability claims that the City is legally obligated to pay, for bodily injury and property damage resulting from airport operations. Non-owned aircraft liability covers liability claims that the City is legally obligated to pay for bodily injury and property damage resulting from the occupancy or operation of a non-owned aircraft, including general liability, automobile liability, products and completed operations, fire legal liability, and hangar keepers liability for both commercial or private aircraft.

The City purchases airport and non-owned aircraft liability insurance separately from its package liability insurance program, which specifically excludes aircraft operations, except for law enforcement liability.

The current insurance policy is with Ace Property and Casualty Insurance Company with a premium of $28,660, and has $50,000,000 in coverage for airport liability insurance and non-owned aircraft liability insurance. This policy is not subject to a deductible.

The renewal quote from Ace Property and Casualty Insurance Company, the only quote submitted, includes the same coverage as the current policy, with a renewal premium of $30,810.

Carriers bind insurance coverage October 1, 2021 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 and may not be modified. Current insurance policies are available in Risk Management.

Fiscal Impact

Funds are budgeted in the Proposed FY 2021-22 Risk Management Fund.

Staff/Board Recommending

D. Blu Kostelich, Chief Financial Officer

Attachments

Airport Resolution

Airport