Title
Resolution to Approve the Board of Insurance Administration's Recommendations for 2022 Pollution Insurance Renewal
Memorandum
This resolution is submitted for City Council's approval of the Board of Insurance Administration's recommendations for the City's 2022 Pollution Insurance Renewal.
At the January 27th, 2022 Insurance Board meeting, Hylant provided a review of the quotes, changes in coverages and rates related to our pollution line of coverage which expires February 19, 2022. The result of this extensive marketing and negotiating effort is the renewal of the pollution line of coverage with the incumbent carrier, Chubb for a 3-year term. The resulting premium would be $35,440.
The renewal quote from Chubb does include some changes in coverage. The deductible for Underground Storage Tanks was lowered from $100,000 to $50,000. Additionally, the new policy includes new policy exclusions for PFAS, Lead contaminated water, odors and atmospheric migration, among others.
Due to these changes in coverage, Hylant continues to negotiate with Chubb and other carriers for coverage of these exclusions where possible, which may result in increased premium. To secure these additional lines of coverage with Chubb or another carrier, it is estimated the premium could be as high as $48,000.
Based on its consideration of the renewal information provided, the Board of Insurance Administration recommends that Council approve the 2022 Property and Casualty Insurance Renewals for the City as recommended by Hylant not to exceed $45,000.
Staff
Prepared by: Michael Pettigrew, City Treasurer
Reviewed by: Marti Praschan, CFO and Financial Services Area Administrator
Jennifer Richards, Assistant City Attorney
Approved by: Milton Dohoney Jr., Interim City Administrator
Body
Whereas, The City's pollution insurance policy and coverage expires on February 19th, 2022;
Whereas, The City's insurance broker has obtained quotes for the City's 2022 Pollution Insurance Re...
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