Finance Committee Agenda and Packet 2022 02 21

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LL Cityof FINANCE COMMITTEE Louisville COMMUNICATION COLORADO • SINCE 1878 SUBJECT: CITY OF LOUISVILLE 2022 INSURANCE RENEWAL DATE: FEBRUARY 21, 2022 PRESENTED BY: MEGAN DAVIS, DEPUTY CITY MANAGER DAWN BURGESS, EXECUTIVE ADMINISTRATOR RONDA HENGER, HUMAN SERVICES DIRECTOR SUMMARY: Property and Liability: The City of Louisville 2022 renewal prepared by our broker, Innovise Business Consultants, represents a roughly 16.5% increase across all lines of coverage through Travelers and Pinnacol, our current insurance providers. With the City's new Facilities Manager, Kevin Frey, staff worked closely with Managers to update our schedule of insured assets and identify areas where it was necessary to increase coverage. Thus, we insured significantly more equipment resulting in a higher premium in our Inland Marine coverage. We also increased values on several structures to bring them in line with appropriate replacement values. Other notable increases were incurred in solar, law enforcement, employment practices liability, and auto. In 2021, the City purchased a Wind/Hail Deductible Buy -down. This policy buys down the wind/hail deductible on our most expensive structures. This policy expires in March 2022, and we anticipate renewing coverage for 2022. The premium for that coverage in 2021 was $157,364 and included the Recreation/Senior Center, Library and City Services Facility (our highest value facilities for which there is a net financial benefit for coverage). In previous years, City Services was covered as one structure. However, this year, it was noted that City Services Facility is two separate structures and insured as such, thus it was not financially advantageous to buy down those structures. For 2022, the Wind/Hail Deducible Buy Down will include only the Recreation/Senior Center and Library. Though not finalized, staff anticipates the premium to be about $125,000. Worker's Compensation: The City continues to be satisfied with the resources, guidance, and information provided by Pinnacol Assurance related to worker's compensation coverage. This year, staff considered deductibles of $2500, $5000 and $10,000. After reviewing historical data, staff chose a higher per claim deductible of $5000 for 2022. Data showed there was not a significant difference in the out of pocket amount between our previous deductible of $2500 and $5000, and this deductible offered a lower premium. CITY COUNCIL COMMUNICATION