Laserfiche WebLink
September 28. 1983 <br />Page 2 <br />Even though L have handlod insurance in the pa:it and we have soon some <br />reduction in our annual insurance premiums I would, nonetheless, recommend <br />the hiring of an insurance and risk management consultant. While I have <br />some knowledge of insurance, my primary area of expertise is finance and <br />accounting. A consultant would possess far more expertise in insurance <br />than I would. I believe that the rationale for hiring an insurance <br />consultant is similar to that whichis used in hiring an engineering <br />consultant. Even though we have an engineer on staff the consultant hired <br />has a much greater level of expertise in the subject he or she was hired <br />to report on. <br />Three proposals were obtained. Copies of the proposals are attached for <br />your review and consideration. The firms submitting proposals and the <br />cost of retaining them for one year are: <br />ICMA/Wyatt <br />Chicago, Illinois $3,765 <br />Risk Control, Inc. $3,500 <br />Corporate Risk Managers, Inc. $3,325 <br />The ICMA/Wyatt proposal is a program sponsored by the International City'"] <br />Managers Association. Provisions of the plan call for mailing copies of <br />insurance policies to Wyatt Company in Chicago where a review would be <br />made and a written report submitted to the City. A representative of the <br />firm would fly in and present the report to the Council. The second part <br />of the proposal is for marketing assistance. Based upon the review of <br />the policies, specifications would be prepared and given to the City to <br />be used in obtaining insurance proposals. The Wyatt proposal does not <br />include an inspection of operations nor does it include claims assistance. <br />For those reasons plus the fact that it is the most costly proposal I <br />would not recommend their proposal. <br />The proposals from Risk Control, Inc. and Corporate Risk Managers, Inc. <br />both include all of the services I previously indicated an insurance and <br />risk management firm could perform for us. Briefly, those services are: <br />1) determining the level and adequacy of present coverages; 2) preparation <br />of specifications and assistance in bidding; and 3) assistance in the <br />handling of claims. <br />Each firm was asked to provide client references. I checked three of the <br />references provided by each firm. Attached are summaries of the comments <br />made by the individuals I spoke to. All of the individuals were satisfied <br />with the services provided by each firm. A common comment was that the <br />firm had improved their insurance coverages and/or saved them money by <br />reducing their insurance costs. <br />�1 <br />