Title
Resolution to Approve the Board of Insurance Administration's Recommendations for 2022 Property and Casualty Insurance Renewals
Memorandum
This resolution is submitted for City Council's approval of the Board of Insurance Administration's recommendations for the City's 2022 Property and Casualty Insurance Renewals.
The City's insurance broker, Hylant Group, advised the Insurance Board that the insurance market continues to change rapidly with increased premiums, increased retentions (deductibles), and reduced limits for most lines of coverage. Rate increases for municipalities have been significantly impacted, with property, liability, and cyber liability insurance rate increases that exceed 100% of expiring policies in some instances.
Hylant has provided the Insurance Board with a comprehensive review of the quotes, changes in coverages and rates, and provided recommendations which include coverages for property, casualty, public entity liability, excess liability, crime, fiduciary liability, aviation/airport liability, liquor liability, general liability/excess liability (650 S. Forest parking garage), cyber liability, and travel accident insurance.
For all lines of coverage, our first priority is to maintain existing coverage over our expiring policies at the best possible premium. Due to the challenging nature of the insurance market, this is not always possible. As such, the insurance renewal quotes being recommended for approval do include some changes in overall coverage.
* Property Insurance
o Deductible will increase from $50,000 to $100,000.
o There is a new sub-limit for tornado damage of $50,000,000.
o The deductible for wind/hail damage will increase from 1% to 3% of loss amount.
* Cyber Liability Insurance
o Deductible increase from $50,000 to $250,000.
Due to these changes in coverage, Hylant continues to negotiate with carriers for additional coverage where possible, which may result in increased premiums to achieve our goal mainta...
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