For the past several years, Arthur J. Gallagher along with City staff has made measurable commitment to safety and best practices.  The increase in natural disasters since 2017 have significantly impacted the insurance market; especially the property market from hurricanes, earthquakes and fires.

Renewal of the City’s excess property, liability, and workers' compensation insurance program for the period December 15, 2020 through December 2021 purchased through the City’s contracted broker, Arthur J. Gallagher Risk Management Services, Inc., under contract number/RFP Number 743-16 for a total cost not-to-exceed $5,006,959. The projected 2020-2021 excess insurance program renewal premiums reflect a total cost not-to-exceed $2,281,959 representing an approximate 31% premium increase over the expiring program’s cost.  The total cost also includes an increase in the City’s Loss Fund to $2,725,000 which represents an increase of approximately 42%.  This is due to a review of our historical experience by the carriers who have requested the increase.  Any monies we don’t pay from our self-insured fund retention, stays with the City to be used elsewhere.

Based on the City’s increase in exposures (i.e. payroll), claims experience, and current market conditions, including the claims related to police actions, Human Resources / Risk Management is recommending approval of the resolution at the higher excess liability coverage level.