Title
FY2012 Liability Insurance Renewal - Approval
History
The Horton Group has provided the Village with its renewal premium amounts for Fiscal Year 2012 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 FY2012 liability and property premiums increased approximately $3,400 (0.39%) as compared to FY2011 premiums. All premiums remained constant with the exception of Excess Worker's Compensation. Although premium increases in the market are running at approximately 3%, the Village's premium increases were substantially less based on our good loss history, high deductible format and the years of continuity with our current carriers. The increase in the Village's Excess Worker's Compensation premium is applicable to NCCI base rate increases and medical inflation in Illinois (2nd highest in nation). The Village's deductible/retention amounts have remained constant, with the exception of Excess Worker’s Compensation, which increased from $400,000 to $425,000, a requirement of our carrier, Safety National.
Mr. Michael Gleason from the Horton Group was present at the Finance Committee meeting to explain the renewal process and answer any questions.
On October 17, 2011, 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 of $867,079, which includes the Horton Group’s annual service fee, will be included in the FY2012 budget.
Recommended Action/Motion
I move to approve the property and liability insurance carriers and premiums, in the amount of $867,079, as presented by the Horton Group.