HomeMy WebLinkAbout5.F.10. 2010/2011 Property/Liability Insurance Renewals 5 F/c?
CITY OF SHAKOPEE
Memorandum CONSENT
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
RE: 2010/11 Property /Liability Insurance Renewals
DATE: July 1, 2010
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, 2010 to
July 31, 2011.
Basic Policy
The policies proposed are basically the same as current coverage. The premium rates are slightly
smaller than last year. The total deposit premium has increased from $491,189 to $493,957 covering
the City, SPUC and EDA.
Open meeting law defense is now included with the basic policy.
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)
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 $424,880 (General Fund $376,680) for insurance (not counting employee
group or work comp. insurance) and deductibles across all funds, excluding SPUC. SPUC's share of
the deposit premium is $136,954 and the City's is $357,003.
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 recently. 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 $57,559 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 $493,957, and not waive the monetary limits on tort liability established
by Minnesota Statutes 466.04.
Gregg Voxland
Finance Director
finance \docs \insure \prplia2010
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LEAGUE OF CONNECTING & INNOVATING
MINNESOTA SINCE 1913
CITIES
June 24, 2010
Capesius Agency Covered Party: City of Shakopee
P.O. Box 97
Shakopee, MN 55379 -2135
Effective Date: 07/31/10
RENEWAL PREMIUM SUMMARY
Common Coverages
Coverage Deductible Premium
• Property $2,500. $153,199.
• Mobile Property 2,500. 13,856.
• Municipal Liability 2,500. 192,101
• Automobile Liability 2,500. 23,371.
• UM/UIM $200,000 all covered autos 2,500. 1,860.
• Basic Economic Loss Benefits (PIP) all covered autos 2,500. Included.
• Automobile Physical Damage 2,500. 35,847.
• Crime 2,500. Included.
• Open Meeting Law NA Included.
Experience Rating Modifier: .943
(Applied to Municipal Liability, Auto Liability, and UM/UIM) The modifier is calculated with a formula which compares
the city's actual loss history with the amount of losses that would be expected for a city of that size if the city were a perfectly average
LMCIT member. If the city's losses and expenses are better than average the city receives a premium credit. If the city's losses and
expenses are worse than average, the city receives a premium debit.
Optional Coverages
Coverage Deductible Premium
• Bond 2,500. 2,503.
• Equipment Breakdown 2,500. 13,659.
• Excess Liability Limit: $ 1,000,000 NA 57,559.
• Liquor Liability Limit: $ NA Not Covered.
• Fireworks Not Covered.
• No Fault Sewer Back Up Limit: $ Not Covered.
• Airport Liability Not Covered.
TOTAL $ 493,957.
DO NOT PAY UNTIL YOU RECEIVE INVOICES
TORT LIMIT $500,000. /$1,500,000.
Comments: Needed newly dated Waiver Form. See attached for additional remarks.
RECEIVED
JUN 282010
LEAGUE OF MINNESOTA CITIES llP��"
AVE. WEST PHONE: (651) 281 -1200 FAX: (651) 281 -1298
INSURANCE TRUST ST. PAUL, MN 55103 -2044 TOLL FREE: (800) 925 -1122 WEB: W W W.LMC.OILG
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