Discussion and possible action to approve the Fiscal Year 2024 Property and Casualty Insurance package in the amount of $2,094,200.

This Insurance Package includes coverage for the City’s property, equipment, autos, watercraft, underground storage tanks, cyber liability, and general casualty (liability) insurance.  The package also provides for primary and excess liability, subject to policy terms, conditions, limits, and any sub-limits, if applicable.    

The City has contracted with Alliant Insurance Services, as our broker, to assist with the process of evaluating, negotiating, and obtaining, the best coverage options and prices to consider, within the public entity insurance marketplace. Based on Alliant’s proposals and recommendation, this insurance package will maintain the Self-Insured Retention (SIR) of $1,000,000 per liability claim occurrence, and maintain the aggregate level of $4,000,000 per year. The proposed package will also continue to maintain excess liability policies above the underlying primary policies, as well as providing for other specialty policies.   

The Property and Casualty Public Entity Insurance market is continuing to trend upward, especially related to excess liability, Cyber Liability, and property coverage. However, this FY we obtained a favorable property coverage option with Traveler’s. This option will help offset some of the overall policy cost increases.    

This FY we are recommending and proposing, along with the support of our broker, Alliant, the proposed $2,094,200.00 for the City’s FY 2024 insurance package renewal. Attached is (Exhibit A) outlining the FY 2024 Insurance costs proposed.

No binding action has occurred on the requested FY 24 insurance package. 

Staff recommends that the City Council approve the award of the FY 2023 Property and Casualty Insurance package.  The City’s current insurance contracts (policies) will expire on July 1, 2023.  Thus, it is not recommended that the City go without insurance coverage after July 1, 2023, which would occur without the FY insurance package approval.

This Insurance Package will be funded within the Division 3600 budget for Claims & Insurance costs and under the Insurance account (3200-3600-523011).