Title
Property & Casualty and Workers Compensation Insurance Renewal
History
On behalf of the Village, Marsh McLennan Agency (MMA) conducted a comprehensive marketing analysis for all property and casualty lines of insurance coverage. Several potential carriers refused to offer a quote for varying reasons. Despite challenging conditions across the commercial and public sector insurance markets, the Village achieved an exceptionally favorable renewal.
Following a review of all proposals, MMA recommends the Village maintain continuity across all six primary carriers, taking advantage of multi-year rate guarantees with Obsidian and Tokio Marine HCC, and pool safety dividends with IPRF. All commercial underwriters maintain an A.M. Best Financial Strength Rating of A- (Excellent) or higher, backed by significant financial surplus.
The table attached to the Board Packet provides a high-level summary of the recommended renewals.
All coverages have a 1/1/27 effective date, except for the Obsidian package (property, auto, etc.) and cyber liability, which have a 12/1/26 effective date.
Financial Impact
The proposed FY27 Budget includes the necessary funds for the recommended liability insurance program. Brokerage fees for MMA are paid by the carriers except for $195 built into the cyber liability total cost.
Recommended Action/Motion
I move to approve the liability insurance package from Obsidian Specialty, which includes coverage for Property, Inland Marine, General Liability, Automobile, and Umbrella Excess Liability, in the amount of $1,056,155; and Workers’ Compensation for $199,392; Crime policy for $3,214; Unmanned Aircraft Liability policy for $28,710; Pollution policy for $642;
AND
Approve Cyber Liability coverage by HCC in the amount $58,679;
AND
Authorize the Village Manager to execute all related contracts, subject to Village attorney review.