Finance Committee Agenda and Packet 2020 02 18

Home Browse Search

11: City,/ im Louisville COLORADO • SINCE 1878 FINANCE COMMITTEE COMMUNICATION SUBJECT: DATE: CITY OF LOUISVILLE 2020 INSURANCE RENEWAL FEBRUARY 18, 2020 PRESENTED BY: MEGAN DAVIS, CITY MANAGER'S OFFICE SUMMARY: Property and Liability: The City of Louisville 2020 renewal prepared by our broker, Innovise Business Consultants, included a roughly 10% increase across all lines of coverage through Travelers and Pinnacol, our current insurance providers. Thus, Innovise marketed our property and liability business to other companies to determine if we could get a better rate. Ten insurance companies declined to respond in 2019, two more declined to respond for the 2020 renewal, most citing the City's 2018 large property losses. Eighteen insurance companies were not considered due to higher deductibles and pricing not being competitive. Selective Insurance indicated verbally they could provide a competitive quote but did not submit in time for renewal. One Beacon Government Risk indicated they would not write Workers Compensation, Cyber Liability and Property and were over $300,000 for the lines they would write. Travelers was also the only carrier willing to quote on all of our lines of coverage, including: liability, property, inland marine, auto, law enforcement and cyber. Thus, staff renewed coverage with Travelers. The premium renewal for Property and Casualty with Traveler's is $490,000 for 2020 vs. $436,128 for 2019. This represents a roughly 12.27% increase over 2019. Hail continues to be a significant contributing factor across the Front Range. In Louisville, recovery from the 2018 hail event was compounded by a lightning strike at City Services on July 4, 2019 and another hail event on July 5, 2019, which damaged property and auto which had just been repaired from the 2018 event. In addition to our increased premium in property and liability, our hail and wind coverage now includes a 3% deductible vs. a 1 % deductible. This deductible is applied to the total insured value of the building impacted by hail or wind, and could represent a significant cost increase to the City depending on the value of the building. Staff continue to work with our brokers to determine what options are available to address this potential financial impact. In addition, staff are working on mitigation/risk reduction measures that could mitigate the impacts of hail on City assets (such as covers/carports for City vehicles). CITY COUNCIL COMMUNICATION 10