HomeMy WebLinkAbout5.F.3. 2009/10 Property Liability Insurance Renewals
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CITY OF SHAKOPEE CONSEr~T
Memorandum
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
RE: 2009/10 Property/Liability Insurance Renewals
DATE: July 13, 2009
Introduction
Council is requested to approve of the renewal of property and liability
insurance coverage from the League of Minnesota Cities.
Background
Renewal
Attached is a list of property/liability insurance premiums for the renewal
of the present coverage with the League of Minnesota Cities insurance Trust
(LMCIT) . The policy period is August 1, 2009 to July 31, 2010.
Basic Policy
The policies proposed are basically the same as current coverage. The
premium rates are slightly smaller than last year. The total deposit J
premium has decreased from $523,439 to $491,189 covering the City, SPUC and
EDA.
The main reason for the decrease in premium is an improvement in the
liability experience rating due to old claims rolling off of the
calculation.
The premium for employee bonding is $1,581 for $100,000 of coverage, $2,050
for $400,000 and $2,190 for $500,000. The increase from $100,000 to
$500,000 of coverage is $609 more in premium but is offset by the
elimination of the separate Clerk/Treasurer bond which has a premium of
$888. The coverage for $500,000 is included in the renewal amounts.
All of the coverages are from the League of Minnesota Cities Insurance
Trust.
There is more detail available on the policy for any Council member that
desires it.
Optional Coverage
Quotations were not requested for the following coverages:
Flood
Earthquake
PIP (auto coverage)
Asbestos removal liability (in excess of basic coverage of $200,000)
Open meeting law defense
Joint Powers contracts
Fire works
Utility poles and lines - SPUC
Independent Administrative Boards
Premise medical - no fault coverage
Extraordinary expense (loan for disasters)
The city budget contains $459,910 (General Fund $345,910) for insurance
(not counting employee group or work compo insurance) and deductibles
across all funds, excluding SPUC. SPUC share in the cost of the
insurance is about $132,957 and the city is $358,232.
One of the items for the renewal of the property/liability insurance is
to not waive the monetary limits on municipal tort liability. Council
previously did not waive the monetary limits on tort liability
established by Minnesota Statutes 466.04 and the renewal was processed
accordingly. The current liability limit is $1,500,000.
In a move that is contrary to private insurance companies, LMCIT has
included terrorism property coverage up to $1,000,000 as a result of
9/11. There is also included up to $1.5 million coverage for mold
liability_
Umbrella liability coverage
Council added excess liability coverage last year. Some types of claims
are not covered by the immunity limit and extension of coverage to
additional insured parties under the city policy may not be within the
immunity limits. The premium for excess liability coverage is $66,188
for one million dollars of coverage (included) .
Action Recommended
Move to accept the property/liability insurance renewals from the League of
Minnesota Cities Insurance Trust for a deposit premium of $491,189, and not
waive the monetary limits on tort liability established by Minnesota Statutes
466.04.
G~ Voxland
Finance Director
finance\docs\insure\prplia09