Agenda Packets - 1985/05/06 - Laserfiche WebLink

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M r) TO: Mayor 6 Council ^ t 4-� FROM: Finance Director -Treasurer Brager DATE: May 9, 1985 RE: INSURANCE RENEWALS Pursuant to Council direction Staff and Brian Colway of Corporate Risk Managers, Inc., our insurance consultant, obtained renewal quotations for our various insurance policies, which expired on May 1, 1985 and ordered policies in order that the City might have uninterrupted insurance coverage. The following policies were obtained and their costs are compared to the previous year's cost: Policy Package Boiler 6 Machinery Automobile Umbrella Liability i Worker's Compensation :public Officials Present Premium Premium Company 85-B6 84-85 Difference Home $12,830 $ 7,909 +$ 4,921 Hartford $ 2,916 $ 01 t$ 2,916 Home $10,738 $ 5,411 +$ 5,327 Investors $ 4,685 $ 650 +$ 4,035 MN,Bteta Mutual $26,951 $14,572 +$12,379 Lloyd's of London $ 3,763 $ 1,251 +$ 2,512 TOTAL $61,883 $29,793 +$32,090 The boiler and machinery coverages were included in the Package Policy in 1984-85. Costs of these policies are $32,090 greater than the 1984-85 renewal premiums. Our insurance consultant advises that insurer's of govern- mental entities have experienced underwriting losses in the past few years. Those losses have caused a number of companies to stop writ- ing governmental business and those that have remained in the market to increase premiums dramatically. I have been advised by our insur- ance consultant that while our premiums have increased dramatically they are reflective of the present insurance market and are compar- able to the increases of his firm's other governmental clients. Therefore staff recommends that the Council approve these renewals. These renewal premiums are over budgeted -amounts. A 15% increase in premiums was anticipated when the budget was prepared. The actual increase in premiums is 108%. The total amount budgeted for insurance was $36,159. The actual cost is $25,724 over budget. Staff recommends