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LL 1ty.�f FINANCE COMMITTEE <br />Louis idle COMMUNICATION <br />COLORADO • SINCE 1.878 <br />SUBJECT: CITY OF LOUISVILLE 2024 INSURANCE RENEWAL <br />DATE: JANUARY 18, 2024 <br />PRESENTED BY: DAWN BURGESS, RISK MANAGEMENT SPECIALIST <br />SUMMARY: <br />Property and Liability: The City of Louisville has had several challenging years <br />impacting insurance coverage. In both 2018 and 2019, the City experienced significant <br />hail events, resulting in multi -million -dollar hail claims. In 2021, damage to City facilities <br />from the Marshall Fire led to another multi -million -dollar claim. The City's loss history has <br />trended significantly higher than desired industry standards. Underwriters prefer a <br />property loss ratio of roughly 40%. As noted on attachment 1, our recent loss history is <br />1153%. <br />Innovise Business Consultants, our broker, worked closely with staff and the Travelers <br />underwriter to successfully obtain all lines of coverage for property and liability and <br />coverage has been renewed for 2024. Innovise also marketed City insurance needs to <br />carriers other than Travelers. As noted in attachment 2, carriers declined to provide a <br />quote or were not competitive. The renewal represents a roughly 16.24% increase across <br />all lines of coverage through Travelers and Pinnacol, our current insurance providers. <br />In addition to asking Innovise to market City insurance needs, staff completed an <br />application with Colorado Intergovernmental Risk Sharing Agency (CIRSA.) CIRSA <br />declined to provide a quote at this time noting they believe the City's recent claims history <br />would adversely affect the CIRSA pool. However, CIRSA expressed optimism that they <br />can provide a competitive quote for the 2025 renewal. In subsequent meetings with <br />CIRSA, representatives also declined to provide a quote for workers' compensation <br />coverage stating the City's coverage and premium with Pinnacol is better than what <br />CIRSA can offer. <br />In 2023, the City also purchased a Wind/Hail Deductible Buy -down policy. This policy <br />buys down the wind/hail deductible on our most expensive structures. This policy expires <br />in March 2024. Staff will present a quote to the City Manager for consideration prior to <br />expiration of the coverage. The premium for that coverage in 2023 was $144,281 and <br />included the Recreation/Senior Center and Library. The premium for 2024 coverage has <br />not been obtained at this time. <br />Worker's Compensation: Worker's compensation coverage was renewed with Pinnacol <br />Assurance. Travelers provided a quote for worker's compensation coverage. The quotes <br />CITY COUNCIL COMMUNICATION <br />6/67 <br />