HomeMy WebLinkAbout1979-07-17; City Council; 5924; Excess Limit - City General Liability InsuranceCITY OF CARLSBAD
AGENDA BILL NO. c5" 9^? if Initial:
Dept.Hd. 'f
DATE: I ^ 17» 1979
C. Atty. \JfA
DEPARTMENT: City Manager C. Mgr. 'S
Subject:
EXCESS LIMIT - CITY GENERAL LIABILITY INSURANCE
Proposal to Increase
Statement of the Matter
The City has already renewed the Water Department General Liability, City
General Liability, Auto Liability and Physical Damage, Excess Auto Liability,
and Excess Workers' Compensation Insurance for 1979-80.
The City's'present coverage for Combined Single Limit in the amount of $2,000,000
carries an annual premium of $148,000. A quotation has .been received from our
present carrier, at our request, to increase the General Liability coverage
for the City and the Water Department. An increase in coverage from $2,000,000
to $5,000,000 would cost $45,000 annually; an increase to $10,000,000 would
cost $65,000 annually.
Staff has checked with other cities as to the amount of excess limit insurance
they carry. Of the six cities contacted, most have this coverage ranging from
$5,000,000 to $10,000,000. We found that the rates quoted by our carrier are
in line with the rates paid by these cities. In addition, several are also self-
insured and have retention from $50,000 to $500,000 which means that the city
would pay claims up to these amounts and the excess insurance would trigger'
after that limit had been reached.
Exhibit
None
Recommendation
That the City Council consider establishing a higher.excess limits coverage
for the protection of the City in the amount of $5,:000,000 and if they concur,
by minute motion-authorize staff to obtain the coverage.
Council Action:
7-17-79 Council authorized staff to obtain the recommended coverage.