HomeMy WebLinkAboutInsurance RenewalsAGENDA MEMO
(0612112005 AGENDA)
DATE: June 21, 2005
· TO:
Mayor and City Council
FROM:
Luanne Hanford
Director of Human Resources
SUBJECT: Insurance Renewals
The Property, Casualty and Liability Insurance Advisory Committee met on
Tuesday, June 14, 2005, to review and discuss two insurance proposals, one from
Arthur J. Gallagher, the City's current carrier, and one from the Texas Municipal
League Inter-Governmental Risk Pool (TML-IRP). After reviewing the bids and
coverage documents, the committee agreed to meet again and invite representatives
from both carriers to discuss their proposals, the financial stability of their
companies and any coverage differences between the two proposals.
The Committee met again on Monday, June 20, 2005, with representatives from
both companies. After the representatives answered questions about their
proposals, financial stability, and possible gaps in coverage, the committee discussed
the differences in the proposals. After discussion, the committee agreed to
recommend purchasing insurance coverage from the Texas Municipal League Inter-
Governmental Risk Pool for an annual premium of $275,901.95. The proposal from
TML-IRP was approximately $84,000 less than the proposal submitted by Arthur J.
Gallagher and represents a savings of over $112,000 from last year's annual
premium. The proposal includes coverage for Worker's Compensation, General
Liability, Law Enforcement Liability, Public Official's Liability, Auto Liability,
Real & Personal Property, Flood and Earthquake, Mobile Equipment, Boiler and
Machinery, Public Employee Dishonesty, Forgery or Alteration, and Computer
Fraud. The City's current coverage with Arthur J. GaHagher expires on 06/30/05.
3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644
Bid / Proposal Summary
Date: 5/11/05
Entity Name: University Park
Entity ID: 5254
Proposed Proposed
Effective Date Anniversary Date
July 1, 2005 July 1, 2006
Annual
Type of Coverage Limit Deductible Contribution
Workers' Compensation Statutory $ 150,000 $ 126,947
General Liability $ 5,000,000 Per occurrence, $ I00,000 $ 22,019
$ 10,000,000 Aggregate
Law Enforcement Liability2 $ 5,000,000 Per occurrence $ I00,000 $ 12,002
$ 10,000,000 Aggregate
Errors & Omissions Liability ' $ 10,000,000 Per wrongful act $ 100,000 $ 40,315
(Public Officials,) $ 10,000,000 Aggregate
Auto Liability $ 5,000,000 Per occurrence $ 100,000 $ 28,605
Auto Medical Payments ' $ 25,000 Per person $ 100,000 $ Included
Auto PhysicalDamage $ Actual Cash Value $ 10,000/25,000' $ 24,067
Real & Personal Property6 $ 22,404,138 1--] Actual Cash Value $ 25,000 $ 13,538
(Includes $350,000 Valuable Paper & Records Incl. [] Replacement Cost
EDP Media; $250,000 Accounts Receivable; and
$1,000,000 Loss of Revenues & Extra Expense)
Flood& Earthquake' $ 22,404,138 [] ActuaICash Value $ 25,000 $ 10,034
[] Replacement Cost
Mobile Equipment $ 1,053,107 [] Actual Cash Value $ 500 $ 3,096
[] Replacement Cost
Boiler & Machinery' $ 22,404,138 Per accident $ 25,000 $ Included
Public Employee Dishonesty $ 2,000,000 [] Per occurrence $ 25,000 $ 2,141
[-"] Per employee
Forgery or Alteration $ 50,000 Per occurrence $ 500 $ 156
Theft, Disappearance & Destruction
Coverage C-Inside $ 50,000 Per occurrence $ 0 $ 1,146
Coverage C-Outside $ 50,000 Per occurrence $ 0 $ 49
Computer Fraud $ 2,000,000 $ 500 $ 320
TOTAL ANNUAL: $ 284,435
Annual Payment Discount': $ (8,533.05)
Total Annual Contribution: $ 275,901.95
Quarterly Payment: $ 71,108.75
SEE PROPOSAL FOR OPTIONAL COVERAGES, LIMITS, DEDUCTIBLES, etc.
Sudden events involving pollution provided at the occurrence limit shown or $2,000,000, whichever is less.
LEL retroactive date available for 5 years prior to the effective date of coverage at no additional contribution.
E&O retroactive date available for 5 years prior to the effective date of coverage at no additional contribution.
Automobile Medical Payments Coverage is included automatically for all automobiles with a design capacity of eight passengers or less.
For larger capacity vehicles, coverage is available subject to an additional contribution. The deductible for Automobile Medical
Payments Coverage is the same as the deductible elected for Automobile Liability.
Deductible applies per vehicle, subject to a $10,000 maximum deductible for any occurrence involving two or more vehicles. The
occurrence deductible does not apply to loss caused by hail.
Real & Personal Property deductible is on a per occurrence basis, rather than a per building basis, and there is no coinsurance penalty.
Texas Municipal League Intergovernmental Risk Pool
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