Title
FY2014 Liability/Property Insurance Renewal - Approval
History
The Horton Group has provided the Village with its renewal premium amounts for Fiscal Year 2014 for all property and liability insurance policies, including Excess Worker’s Compensation. A summary renewal packet is attached to this agenda item for reference purposes.
Overall, the Village’s FY2014 overall liability and property premiums decreased approximately $22,800, or 2.7%, as compared to FY2013 premiums. The property and auto physical damage premium decreased approximately $32,500; this decrease is due to a change in the property deductible from $10,000 to $50,000. This change in deductible brings us more in line with the market as the Village's deductible had been $10,000 for a significant number of years and we have not had any significant property claims for more than five years. The decrease in the property and auto physical damage premium is partially offset by an increase of approximately $1.2 million in the Village's property statement of values. The general, auto, employee and excess liability premiums increased approximately $7,300; this increase is partially driven by one outstanding general liability claim and one outstanding employee practices claim and partially by the market. The excess worker's compensation premium increased approximately $6,700; this increase is partially driven by an increase in payroll of approximately 5.7% and partially driven by the market. These increases were partially offset by a decrease in Horton's service fee of $4,600. Retention amounts (deductibles) on each of the lines remained the same, with the exception of Worker’s Compensation; these retention amounts increased from $550,000 to $600,000 for police employees and from $500,000 to $600,000 for all other employees. Although increased, these retention amounts are still below those offered by Safety National to many of their other municipal clients.
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