Package liability insurance covers the following:
• General liability – protects an insured when negligent acts and/or omissions result in bodily injury and/or property damage on the premises of a business, when someone is injured as a result of using the product manufactured or distributed by a business, or when someone is injured in the general operation of the business, other than an employee.
• Auto liability – protects an insured who is legally liable for bodily injury or property damage caused by an automobile.
• Employment practices liability – protects an insured in the event of legal actions resulting from charges of harassment, discrimination, wrongful termination of employment, defamation, and invasion of privacy.
• Employee benefits liability – protects an insured for an error or omission in the administration of an employee benefit program, such as failure to advise employees of benefits programs.
• Law enforcement liability – protects police officers for an allegation or actual false arrest, excessive force, and invasion of privacy, unless intentionally committed, as well as other civil rights violations.
• Public officials errors and omissions liability – protects against liability exposure faced by public officials from wrongful acts such as actual or alleged errors, omissions, misstatements, negligence, or breach of duty, in their capacity as a public official or employee of the public entity.
The City purchases package liability insurance other than airport and pipeline liability for all operations. Coverage for airport and pipeline liability is covered in separate policies.
The current coverage with Gemini Insurance Company includes a City self-insured retention of $500,000 and a Lubbock Power & Light self-insured retention of $1,000,000, with an annual premium of $589,114.50 for $3,000,000 of coverage per occurrence and aggregate, plus an additional $6,000,000 excess umbrella coverage per occurrence.
The renewal quote is for the same terms as the expiring policy, with a premium of $670,649.13, which is a 13.84% increase over the FY 2020-21 premium. The excess coverage was submitted independently of this coverage.
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. Current insurance policies are available in Risk Management. |
