The City currently purchases ten million dollars of excess liability insurance coverage from Lockton with coverage provided by Allied World with an annual premium of $179,837. This excess liability insurance policy provides coverage in excess of the limits provided by MOPERM and includes terrorism coverage. The proposed premium for 2019 is $237,639. This is $58,033 or 32.31% more than the expiring premium.
This excess liability insurance program transfers the risk of liability claims that could exceed the State’s Sovereign Immunity Statute, which MOPERM provides primary liability insurance coverage for the City. The current excess liability insurance policy provides coverage through December 31, 2018. See the attached memorandum and spreadsheet for more information on the 2019 Excess Liability Insurance proposal.
Lockton marketed the City’s excess liability insurance program for the 2019 policy period. Lockton was unable to find any insurance companies that could offer the City a better insurance program at a lower annual premium with our current liability insurance program. After reviewing the attached proposal, staff recommends accepting Allied World’s proposal for ten million dollars in coverage.