8.5 Renew Comp Insurance Prog
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
6/16/03
TIME
4:00 P.M.
AGENDA SECTION
NO: 8
ORIGINATING DEPARTMENT:
APPROVED FOR
AGENDA:
CITY MANAGER
ITEM
NO.5
BY: Michael W. Morgan
BY~
Please see attached staff report regarding renewal of the City's Comprehensive Insurance Program.
Michael W. Morqan
Deputy City Manaqer - 309-5715
MEMO
TO:
City Commission, City Manager
SUBJECT: 2004 Comprehensive Insurance Renewal~
DATE:
June 11, 2003
We have completed our review of the 2003-2004 Comprehensive Insurance Program
Proposal for the City of Salina and although we experienced a 24.5% premium increase
we are pleased overall with the program as proposed. (Please see attached summary)
This is even more positive when you consider that in some areas, such as property and
auto, our exposure (property value increases and new vehicles) increased. For
example, late last year we used a property valuation consultant to appraise all city
property and as result, our property valuation increased from $74.4 million to $87.1
million. Also, the overall premium is even more impressive when you consider similar
sized communities have experienced 30-50% increases in premiums.
We did explore alternative deductible increases and the possibility of establishing a
SIR, self-insured retention limit but in our best risk management opinion we recommend
the program as originally proposed.
Highlights of this years renewal are as follows:
x St. Paul Insurance will continue to be the sole provider.
X A $2,500 deductible will continue to apply for all liability claims.
X Auto Comprehensive - deductible will increase from $250 - $500.
X Employment Practices Liability - deductible increased from $10,000 - $15,000.
X The City of Salina received the maximum credit for our risk management efforts.
The credits received reduced our annual costs significantly.
For the Commissioners information, both Nancy Schuessler, our Risk Management
Technician and I were previously licensed property and casualty agents in the State of
Kansas. Our technical training combined with over 20 years of public sector risk
management experience, is one of several reasons we receive such credits.
Finally, I appreciate the efforts of Nancy Schuessler, Insurors and Investors and our
consultant, Bob Charlesworth for their assistance. Finally, our management philosophy
that states risk management is every employee's responsibility has proven to be the
best approach and resulted in significant savings for our citizens.
City of Salina
List of Insurance Coverages for 2003/2004 Policy Term
06111/03
PROPERTY
SI. Paul Fire & Marine Insurance Co,
06/30/04
$89,981
(GPO9308235)
Building and Contents
Personal Property of Others inc, Fine Arts
Earthquake
Difference in Conditions
Business Income
Property in Transit
Pollution Cleanup per policy
Building/Ordinance per location, increased cost
-Demolition CosVBuilding-included in above
Personal Effects - Extension
Valuable Papers - Blanket
Accounts Receivable
$87,113,174
$50,000
$10,000,000
$10,000,000
$1,000,000
$50,000
$25,000
$250,000
$50,000
$100,000
$100,000
$5,000
$5,000
$5,000
$5,000
N/A
$5,000
$5,000
$5,000
$5,000
$5,000
INLAND MARINE
SI. Paul Fire & Marine Insurance Co,
06/30/04
$6,922
(GPO9308235)
Mobile - Contractors Equipment (ACV)
Traffic Controllers - Blanket - Replacement Cost
Misc, Unsch, Equipment (ACV)
$3,731,421
$559,000
$812,377
$2,500
$2,500
$2,500
BOILER & MACHINERY
SI. Paul Fire & Marine Insurance Co,
06/30/04
Included in Propertv
(GPO9308235)
Comprehensive Plus Form - Total Covered Limits
SewagelWater Treatment
Any Other Location
Business Interruption
Included in property
Included in property
Included in property
Inciuded in property
$5,000
CRIME
SI. Paul Fire & Marine Insurance Co.
06/30/04
$2,499
(GPO9308235)
Employee Dishonesty
Forgery and Alteration
Money and Securities (Blanket per schedule)
Computer Fraud
$250.000
$250,000
$100,000
$100,000
$1.000
$1,000
$1,000
$1,000
GENERAL LIABILITY
SI. Paul Fire & Marine Insurance Co,
06/30/04
Occurrence
$50.002
(GPO9308235)
HEALTH CARE PROFF LlAB
$5.830
LAW ENFORCEMENT
$25,030
Occurrence
General Aggregate
Products/Completed Operations
Personal/Advertising Injury
Premises Damage Liability
Medical Expense per person/accident
BI & PD Per Occurrence Limit
Employee Benefits-CLAIMS MADE
Morticians/Cemetery
Emergency Medical Treatment-CLAIMS MADE
Partial Sewage Backup
Liquor Liability - Claims Made
Pesticide Endorsement (BI/PD)
Limited Pollution Liability (BI/PD)
Per Occurrence Limit
Aggregate Limit
$2,000,000
$2,000,000
$500,000
$500,000
EXCLUDED
500,000
$500,000/$1,500,000
$500,000
$500,000/$2,000,000
Included
$500,000/$2,000,000
Included
Included
$1,000.000
$2.000,000
$2.500
$2,500
$2,500
$2,500
$0
$2,500
$1.000
$2,500
$2,500
$2.500
$2.500
$2.500
$2,500
$10,000
AUTO
SI. Paul Fire & Marine Insurance Co.
06/30/04
$43,449
(GPO9308235)
Liability - Combined Single Limit (BI&PD)
Medical Payments
Physical Damage - Comprehensive & Collision
Fire and EMS Vehicles
Garagekeepers at scheduled locations
Uninsured/Underinsured
Hired Auto (PD) - Excess basis
$500,000
$5,000
139 Units
Per Schedule
$75,000
$50,000
$50,000
$0
$0
Varies
Varies
$250/$500
$0
$250/$250
PUBLIC ENTITY MGMT LIABILITY
SI. Paul Fire & Marine Insurance Co.
06/30/04
Claims Made - Retro: 1/1/1986
$12.848
(GPO9308235)
Per Occurrence Limit
Aggregate Limit
$1,000,000
$2,000,000
$5,000
EMPLOYMENT PRACTICES
SI. Paul Fire & Marine Insurance Co,
06/30/04
Claims Made - Retro: 1/1/1986
$20.150
(GPO9308235)
Per Occurrence Limit
Aggregate Limit
$1,000,000
$2,000,000
$15,000
City of Salina
Comprehensive Insurance - Policy Analysis
6/11/2003
Auto $53,067 $54,420 $53,466 $49,823 $36,584 $38,196 $39,199 $33,943 $43,449 $49,241'
. General Liability $84,770 $122,479 $91,556 $92,938 $59,980 $56,941 $51,890 $47,508 $49,205 $50,002
. Health Care Prof. Liability $0 $0 $0 $0 $0 $0 $0 $0 $7,486 $5,830.
! Law Enforcement E&O $27,514 N/A $33,167 $37,810 $17,415 $14,887 $13,291 $12,073 $13,928 $25,030[
. Public Officials E&O $14,416 $14,416 $17,419 $16,951 $16,071 $17,079 $17,496 $12,872 $11,520 $12,848
. Property $46,199 $43,083 $48,602 $45,899 $26,932 $34,509 $36,837 $46,111 $55,568 $89,981
Inland Marine $4,511 $10,985 $6,706 $7,297 $3,136 $3,502 $2,502 $6,296 $6,431 $6,922.
,Boiler & Machinery $11,613 $12,252 $12,926 $12,960 $7,022 $7,022 $0 $0 $0 $0
¡Crime $403 $2,953 $3,675 $4,035 $4,932 $4,756 $4,756 $3,713 $3,332 $2,499
--
EDP $2,773 $2,809 $2,650 $2,070 N/A N/A N/A N/A N/A N/A
. Employment Practices Liability N/A N/A N/A N/A N/A N/A N/A N/A $16,240 $20,150,
. Housing Authority E&O $0 $0 $2,740 $2,555 $750 $1,219 $750 N/A N/A N/A
"-Service Fees --
N/A N/A N/A N/A $18,500 $17,000 $17,000 $12,000 $21,000 $21,000
Note: Before 1997. the Housina Authority - Public Officials volicy vremium was not included.
. Note: Before 1999. service fees were included in each volicy's vremium.
Note: In 1996. the General Liability Policy included Law Enforcement E&O.
Annual Premium Analysis
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
--
-..
--