SUBJECT/RECOMMENDATION:
Title
Approve the purchase of excess liability, workers compensation and various specialty insurance policies from October 1, 2025 through September 30, 2026 in the not to exceed amount of $1,620,000.00 pursuant to Clearwater Code of Ordinances Section 2.563(1)(i), Insurance, and authorize the appropriate officials to execute same. (consent)
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SUMMARY:
The Risk Management Division of the Finance Department purchases certain excess and specialty insurance policies through the efforts of Arthur J. Gallagher Risk Management Services, Inc. These policies include the following:
1. Ambridge Public Excess package through Lloyd's Syndicate 2987, Lloyd's Syndicate 4711, Lloyd's Syndicate 1686, Endurance American Specialty Insurance Company, and United Specialty Insurance Company for the following coverages: General Liability (including EMT-Paramedics, Water Utility and Gas Utility), Automobile Liability, Errors and Omissions Liability, Employee Benefits Liability, Crime, Law Enforcement Liability, Sexual Abuse Liability, Auto & Mobile Equipment Physical Damage (over the road only), and Excess Employers' Liability (incidental USL&H and Jones Act Coverage).
2. Excess Workers Compensation through Safety National Casualty Corporation for Workers Compensation and Employer's Liability.
3. Marina Liability package through Great American Insurance Company.
4. Additional specialty policies through various insurers for Cyber Liability, Third Party Storage Tank Liability, Hull Protection and Indemnity, Fiduciary Liability and numerous flood policies. Unmanned Aircraft (Drone) Liability now renews with the property insurance program beginning April 1, 2025.
Premium Renewals:
1. The renewal premium for the Ambridge Public Excess package is $595,925.00, a 3.68% increase over the expiring premium.
2. The renewal premium for the Excess Workers Compensation package is $587,746.00, a 7.57% increase over the expiring premium.
3. The renewal premium for the Marina Liability package is $54,851.00, a 0.38% increase over the expiring premium.
Risk Management is also estimating 14-23% increases for the specialty policies. The premiums are not yet due but will come due at various times throughout the next fiscal year. The need to budget for these amounts now is two-fold:
1. The City pays the premiums through one purchase order to its broker, Arthur J. Gallagher Risk Management Services, Inc., who then pays the various insurers on the City's behalf.
2. Typically, the City has 30 days to pay most invoices; however, insurance premiums are due immediately on demand and therefore there would be insufficient time to bring the individual premium requests to Council.
The total requested not to exceed amount of $1,620,000.00 is an 8.28% increase over the current year actual amount of $1,496,152.22.
APPROPRIATION CODE AND AMOUNT:
5907590-545100 $1,620,000.00
Funds are available in the Central Insurance Fund cost code 5907590-545100, Insurance Premiums, to fund these policies. The Central Insurance Fund is an internal service fund of the City which accounts for all insurance related costs.
USE OF RESERVE FUNDS:
N/A
STRATEGIC PRIORITY:
1.1 Provide evidence-based measurement tools to continually guide municipal performance and promote accountable governance.
1.2 Maintain public infrastructure, mobility systems, natural lands, environmental resources, and historic features through systematic management efforts.