HomeMy WebLinkAbout15.F.8. Property Liability Insurance Renewals
/5. F ~ .
CITY OF SHAKOPEE CONSENT
Memorandum
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
RE: 2004/05 Insurance Renewals
DATE: July 16, 2004
Introduction
Council is requested to approve of the renewal of property and
liability insurance coverage from the League of Minnesota Cities.
Background
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 I,
2004 to July 31, 2005.
Basic Policy
The policies proposed are basically the same as current coverage.
The premiums are larger than last year but more items and value
are covered. The increase is partly due to the new SPUC building
and water storage tanks being covered. The total deposit premium
has increased from $280,146 to $315,060 covering the City, SPUC
and EDA.
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
Garage keepers
PIP (auto coverage)
Volunteer accident
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
Umbrella Policy
Sewer backup - $1,000 no fault coverage
Premise medical - no fault coverage
Business interruption - SPUC
Extraordinary expense (loan for disasters)
The city budget contains $235,770 for insurance (not counting
employee group or work compo insurance) and deductibles across
all funds (General Fund $191,800) , excluding SPUC. SPUC shares
in the cost of the insurance and their share for this year has
not been determined yet, last year it was $86,348.
One of the items for the renewal of the property/liability
insurance is to waive the monetary limits on municipal tort
liability. Council previously did not wai ve the monetary limits
on tort liability established by Minnesota Statutes 466.04 and the
renewal was processed accordingly. The current liability limit is
$1,000,000.
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.
The increase in premium is mainly due to increased expenditures
and the related liability coverage and more items to insure -
part of the cost of growth.
One item that is recommended for. Council to consider is to
increase the blanket bond for all employees (excluding the City
Clerk and Treasurer who have a separate policy) from $50,000 to
$100,000. The limit has not been raised for decades and should
be updated. The additional cost is $1,515
Action Requested
Move to accept the property/liability insurance renewals from the
League of Minnesota Cities Insurance Trust with a deposit premium
of $316,575, including increasing the employee blanket bond and
not waive the monetary limits on tort liability established by
Minnesota Statutes 466.04.
G~VOXland
Finance Director
I:\finance\docs\insure\prplia04
CITY OF SHAKOPEE -7-
COMPANY PREMIUM COMPARISON
SUMMARY:
2003-2004* 2004-2005*
PROPERTY $ 46,791 $ 64,728
INLAND MARINE $ 6,519 $ 7,485
CRIME $ 1,219 $ 1,192
MUNICIPAL LIABILITY $166,985 $171,507
ERRORS & OMISSIONS INCLUDED INCLUDED
AUTOMOBILE $ 53,823 $ 61,625
BOILER & MACHINERY $ 4.809 $ 8.523
TOTAL PREMUIM $280,146 $315,060
*Premiums at Inception of Policy & Does Not Include Interim
Endorsements or Updates
League of Minnesota Cities Insurance Trust
Property/Casualty Program
SHAKOPEE
Premium and Dividend History
$250,000
SHAKOPEE
Premiums and Dividends since 1987
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
Premiums Dividends