Agenda Item: 16(a)
Prepared By: Casey Lucius, Ph.D., Assistant City Manager
Business: City Council Item
Department: Executive
Subject:
Title
Renew October 1, 2025 Insurance Policies in the Amount of $1,639,479 for Property, Casualty, Excess Workers' Compensation, Crime, Pollution, and Accident policies, as well as Firefighter Cancer Benefit Coverage ("Property & Casualty") - Casey Lucius, Ph.D., Assistant City Manager
Body
BACKGROUND:
On June 2, 2024, at the direction of Council, City staff published a Request for Proposal for Property, Casualty, and Excess Workers' Compensation insurance coverage. This solicitation was broadcast to 437 firms via Demandstar. Eight firms downloaded the plans, and one firm submitted a proposal. The firm that submitted the proposal was Public Risk Insurance Agency (PRIA). The resulting policy premium for FY 25 was $1,424,444, excepting Crime, Pollution, Accident, and Firefighter Cancer Benefit coverage (totaling $33,924 in premium). This was a 21% decrease ($383,864) over the expired policy premium of $1,808,308. Further, this is a decrease of 33% or $710,522 on what was budgeted for FY 25 Property & Casualty insurance premiums. This RFP did not include Crime, Pollution, Accident, or Firefighter Cancer Benefit coverage ($33,924). In addition to premium savings, the City was able to improve its program through a lowered Named Storm deductible (7.5% to 5%) and improved automobile physical damage coverage (self-insured exposure on vehicles under $100k to full auto physical damage).
Over the course of FY 25, the City's property portfolio was appraised for replacement cost construction. Between the increased values resulting from the appraisal and subsequent new construction projects, the City's insured property values have increased by approximately $21 million. Excepting a forecasted increase to payrolls, all other exposures have remained stable from year to year.
This year's renewal is based upon negotiations with the in...
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