CC PACKET 06131989 - Laserfiche WebLink

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• fact that the Council in 1988 made the decision not to purchase umbrella liability but to go with the sovreign municipality limit of $600 , 000, and also chose a $10 , 000 per occurence deductible with a $50 , 000 aggregate limit . He pointed out that the savings as a result of that decision were approximately $80 , 000 in policy period ' 88/ ' 89 versus ' 87/88 . Mr . Flaten informed the Council that ' 89/ ' 90 policy year insurance costs could be reduced by approximately $5, 000 providing a change in liquor liability carrier was made from Transcontinental to Park Glenn. This suggested change is prompted by the fact that Stonehouse food/liquor sales last year were estimated to be fifty-fifty in favor of food sales , but that actual figures during the last ten months of operation indicate that that is not the case , and that the City will be unable to obtain the benefits of such a favorable food to liquor sales ratio under the policy with TransContinental . Several other markets were investigated, one of which was Park Glenn. American Risk Services recommends that St . Anthony change i.ts liquor liability policy from TransContinental to Park Glenn, a comparatively new company which now has an established track record and competitive rates , and pointed out the figures on the fourth and fifth pages of the renewal packet showing savings of approximately $25 , 000 in support of • that recommendation. The difference in coverage between the two programs is that the TransContinental policy has a separate policy and a separate $500 , 000 limit for each of the four locations covered , while the Park Glenn program has a $500 , 000 shared limit among all four locations , preventing erosion of the limit on one location due to a large loss at that one location while still providing the full $500 , 000 limit at each individual location. In reviewing the property premiums versus property values , Mr. Flaten pointed out that the premiums have gone up at a lesser rate than the values , evidence that the Council has been prudent in choosing a larger deductible. Mr . Flaten indicated that the City has received dividends from the League of Minnesota Cities Insurance Trust, largely as a result of the design of the claims made contract program. under that program, there is no tail; that is , no claims that are incurred in an earlier time are reported at some future time. Mayor Pro Tem Ranallo indicated the importance of the City ' s support for the League , and the fact that through savings resulting from the City ' s.-participation in the League ' s insurance program the City has actually recovered their dues to the League. • Mr . Flaten reviewed the savings the City has made due to its favorable workers ' compensation experience . Actual experience is reflected in the retrospective basis premium program, and has worked to the City' s advantage because losses have been low. Mr . Flaten recommended that the Council choose the retrospective basis premium program for the