Title
Resolution to Approve the 2025 Insurance Renewals for Policy Premiums Exceeding $75,000.00 effective March 1, 2025
Memorandum
This resolution seeks City Council approval of the 2025 Insurance Renewals effective March 1, 2025.
The City’s insurance broker, Hylant Group, advises that rates continue to increase for most lines of coverage. Hylant has advised that property insurance experiences average rate increases of approximately 14.17% over expiring policies. Casualty coverage for municipalities remains challenging, adhering to strict underwriting guidelines to obtain coverage for law enforcement and the City’s dams.
For all lines of coverage, City Staff’s priority is to maintain or improve coverage over expiring policies at the best possible premium. Hylant has provided a comprehensive review of the quotes, changes in coverages, and rates. Hylant’s recommendations include coverage for public entity liability, excess liability, property, cyber liability, crime, fiduciary liability, liquor liability, and aviation liability. Notable changes include:
1. An increase in cyber liability insurance coverage from $5 million to $10 million at a lower premium over the expiring policy.
2. The continued inclusion of an aggregate retention feature for public entity liability, limiting the City’s exposure to large retention amounts in the event of multiple catastrophic claims in a single policy year.
The following lines of coverage have premiums exceeding $75,000.00 and are included in this resolution:
• Public Entity Liability: $1,231,147.00 (including TRIA charges and aggregate stop premium) based on quotes received.
• Property Insurance: $739,492.00.
• Cyber Liability: $178,783.00 (including the increases limit from $5,000,000.00 to $10,000,000.00)
Based on the renewal information provided, City Staff recommend that City Council approve the 2025 Insurance Renewals for the City as recommended by Hylant in the amount of $2,149,422.00 to secure coverage upon the expiration of current coverages on March 1, 2025.
Staff
Prepared by: Michael Pettigrew, City Treasurer
Reviewed By: Kimberly Buselmeier, Interim Chief Financial Officer
Jennifer Richards, Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City’s insurance policies and coverages are up for renewal at the end of February 2025;
Whereas, City Staff recommends approval of the coverages and premiums in the insurance renewal policies effective March 1, 2025, as presented by Hylant in the amount of $2,149,422.00;
RESOLVED, That City Council approve the 2025 Insurance Renewals effective March 1, 2025, as presented by Hylant and recommended by City Staff;
RESOLVED, That City Council authorize payment for the recommended insurance policy renewals from the Risk Fund in a total premium amount of $2,149,422.00; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.