Item Coversheet
CITY OF PEORIA, ARIZONA
COUNCIL COMMUNICATION
 
Agenda Item: 8C. 


Date Prepared:   Council Meeting Date: 6/18/2024

TO:Honorable Mayor and City Council 
FROM:  Emily Jurmu, City Attorney 
SUBJECT:
General Liability, Property and Auto, Insurance Package Fiscal Year 2025 

Purpose:

Discussion and possible action to approve the Fiscal Year 2025 Property and Casualty Insurance package for: $2,417,726.

Summary:

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

 

The City has contracted with Alliant Insurance Services, as our city insurance broker, to assist with the process of obtaining and evaluating the best coverage options and prices to consider, within the public entity insurance marketplace. Based on Alliant’s proposals and recommendation, this 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 continue to maintain excess liability policies and layers above the underlying primary policies.     

   

This FY the Property and Casualty Public Entity Insurance market trended upward related to our layers of excess liability coverage. This involved what coverage was offered by carriers and at what costs / prices. The trend with excess liability carriers this FY involved the carriers reducing capacity (limits offered) and increasing the costs (for what they did offer). This reflects the market and claims trends and concerns related to the risks associated with Public Entities, Law Enforcement liability, and other exposures involving potentially high and adverse awards.  Legal costs, and the costs associated with defending these cases and exposures, have trended up.  

 

This FY we are recommending and proposing the $2,417,726 insurance package. This insurance renewal package is supported by Alliant, our Insurance Broker, as well as the Cities budget and finance departments. Attached is (Exhibit A) outlining the FY 2025 Insurance costs proposed. This package maintains the same level of coverage as last year.   

Staff Recommendation:

Staff recommends that the City Council approve the award of the FY25 Property and Casualty Insurance package.  The City’s current insurance contracts (policies) will expire on July 1, 2024.  Thus, it is not recommended that the City go without insurance coverage after July 1, 2024, which would occur without the FY insurance package approval.  

Fiscal Analysis:

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

ATTACHMENTS:
Description
FY 25 Policy Summary
Contact Name and Number:  
Brian Flint, Claims Coordinator, (623) 773-7234