Title
Property & Casualty and Workers Compensation Insurance Renewal
History
On behalf of the Village, MarshMcLennan Agency conducted a comprehensive marketing analysis for all property and casualty lines of insurance coverage. Several potential carriers declined to offer a quote for varying reasons. The attached table summarizes the Village’s expiring coverage with ICRMT (2nd column), ICRMTs renewal quote (3rd column), and renewal quote by Obsidian Specialty (4th column).
Staff recommend approval of the Obsidian Specialty proposal totaling $1,330,087, which is $117,804 less than the Village’s 2025 premium and $337,483 less than the new premium quoted by ICRMT. Out of an abundance of caution, staff recommends that the renewal include an increase in the coverage limit for cybersecurity from $1 million to $5 million. Board action is requested at the November 17th meeting because some policies (i.e. property, automobile, cyber) expire on December 1, 2025. The remaining policies expire January 1, 2026.
Financial Impact
The proposed FY26 Budget includes preliminary estimates based on available data at the time. The FY26 Budget will include the amount necessary to fully fund the liability insurance program. The brokerage fee for MarshMcLennan will be paid by Obsidian Specialty, not by the Village.
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 $185,147; Crime policy for $3,385; Unmanned Aircraft Liability policy for $26,100; Pollution policy for $621;
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.