HomeMy WebLinkAbout1984-03-06; City Council; 7657; Purchase of excess liability insuranceCARLSBAD — AGENDAS ILL
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DEPT. RM
TITLE-. PURCHASE OF EXCESS
LIABILITY INSURANCE
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P.ITY ATTY W*
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CITY MGRT^J^
RECOMMENDED ACTION:
Approve Resolution No. y^j*/ authorizing the purchase of excess
1iabi1ity insurance at an annual premium of $22,510.
ITEM EXPLANATION:
Presently..the City purchases excess liability insurance over a
$100,000 self-insured retention up to a limit up to $20 million.
This program provides broad protection for claims brought against
the City including claims based on errors and omissions. Coverage
is presently provided by two carriers, Canadian Indemnity Company
and First State Insurance. Canadian Indemnity Company's policy
which provides the first $1 million coverage has an expiration date
of March 16, 1984. . . • ,
In recent months, there has been some hardening of insurance
markets, and Canadian Indemmity has advised us that they are no
longer prepared to insure any public entity business. The City
Broker, however, has been able to obtain an extremely favorable
quotation for this layer with the same broad coverage form through
Twin C/ities Insurance Company. Twin Cities is a member of the
Hartford Insurance Group and carries the top BEST rating of A+:XV.
Our current annual premium with Canadian
The premium with Twin Cities is $22,510,
last year.
Indemnity is $21,750.00.
an increase of $760 over
.In addition to a quotation at the current self-insured retention
level .of $100,000, Twin Cities also provided a quotation for
reducing the self-insurance retention to $50,000 per accident or
occurance. This would involve payment of an additional premium of
$8,250. After careful consideration, staff is not recommending
this change. To date, no losses have been incurred with an
exposure in excess of $50,000.00, and current funding for the
program is adequate to absorb this should a catastrophic occur.
FISCAL IMPACT:
Funds are available in the City's Liability Revolving Fund to pay
thi s premium.
EXHIBITS;
Resolution No.
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RESOLUTION NO. 7524
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AUTHORIZING PURCHASE OF
EXCESS LIABILITY INSURANCE.
WHEREAS, the City has established a self-insurance program
for liability insurance; and
WHEREAS, the City's Insurance Broker has received quotes
for liability insurance; and
WHEREAS, upon evaluation of the quotes for liability
insurance, the City desires to renew its insurance.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the City Manager is hereby authorized to enter
into an agreement for the purchase of the City's liability
insurance with Twin Cities Insurance Company in the amount of '.
$30,760.
PASSED, APPROVED AND ADOPTED at a regular meeting of the
City Council on the 6th day of March, 1984, by the following
vote, to wit: . .
AYES: Council Members Casler, Lewis, Kulchin, Chick and Prescot
NOES: None
ABSENT: NOne _ .,
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MARY H. j/AS
ATTEST:^MARY H. CASLER, Mayor
ALETHA L. RAUTENKRANZ, City CJ