Title
FY2020 Liability/Property Insurance Renewal - Approval
History
The Horton Group has provided the Village with its renewal premium amounts for the Fiscal Year 2020 for all property and liability insurance policies, including Excess Workers Compensation. A summary renewal packet is attached to this agenda item for reference purposes.
Overall, the Village’s FY2020 liability and property premiums, including Horton's annual service fee and CCMSI's claims handling fee, increased $8,474 or approximately 1.06%, as compared to FY2019 amounts. Decreases to property/auto physical damage, excess worker's compensation, and excess liability were offset by slight increases in the public entity package, drone and umbrella premiums. The decrease in the property/auto physical damage premium is due to our long history with the carrier, excellent loss history, and current market conditions. The increase in the drone premium is due to increased exposure of additional drones and moving to blanket coverage. In addition, pollution coverage was added at a cost of $2,339 for a two year period.
CCMSI's claims handling fee is $25,000 for the 2020-2021 policy term. The Horton Group is in year two of a three-year contract and the annual service fee remains at $44,500 for FY2020. Retention amounts (deductibles) on each of the lines remain the same.
On October 21, 2019, this item was reviewed and approved by the Finance Committee and referred to the Board for approval.
Financial Impact
The attached documents identify the overall budget impact. The total premium amount for all lines of $725,649 plus the claims handling fee and Horton's annual service fee of $69,500 will be reflected in the FY2020 Budget.
Recommended Action/Motion
I move to approve the property and liability insurance carriers and premiums, as well as CCMSI's claims handling fee and Horton's annual service fee, in the total amount of $795,149 as presented by the Horton Group.