Item Coversheet
City of Independence
AGENDA ITEM COVER SHEET
Approved

Agenda Title:

Approval is recommended to transfer the City’s Liability Insurance Program to States Self-Insurers Retention Group, Inc. submitted through Lockton Companies, effective April 1, 2019, with an estimated annual premium of $598,704.00.
Recommendations:

Staff recommends transfer of the City’s Liability Insurance Program to States Self-Insurers Risk Retention Group, Inc. (States) provided through Lockton Companies (Lockton).

Background:

States’ proposed liability insurance proposal decreases the City’s estimated annualized premiums by ($750,845) or an approximate 56% decrease. 

 

 

 

Annualized

 

 

 

Annualized

 

Annualized

Current

 

Premium

 

New

 

Costs

 

Savings

MOPERM

$1,169,712

States

$598,704

$571,008

Excess Liability

$179,837

Excess Liability

$0

$179,837

 

Estimated TPA

$75,000

($75,000)

 

Estimated Other Insurance

$60,000

($60,000)

Total

 

$1,349,549

 

Total

 

$733,704

 

$615,845

 

See the attached documents for more information on States’ proposed Liability Insurance Program.  States’ proposed annual premium will be allocated per the table below.

 

 

2019-2020

 

 

Fund

 

Premium

 

Account

General Fund

$475,192

02-4260-5207

P&L Fund

$81,723

20-5220-5207

Sanitary Sewer Fund

$19,757

30-5230-5207

Water Fund

$22,032

40-5240-5207

Total Fund Amount

 

$598,704

 

 

 


Department:          FinanceContact Person:          Terry A. Hartwig


REVIEWERS:
DepartmentAction
Finance DepartmentApproved
Finance DepartmentApproved
Law DepartmentApproved
City Managers OfficeApproved
City Clerk DepartmentApproved

Council Action:          Council Action:          Accepted

ATTACHMENTS:
DescriptionType
Finance Department MemorandumBackup Material
Charlesworth Consulting MemorandumBackup Material
State Liability Insurance Proposal Submitted by LocktonBackup Material
States Company InformationBackup Material