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City staff recommend insurance changes: higher deductibles to lower premiums, larger liability cap
Summary
City staff presented the annual Public Entity Partners insurance renewal at the May 29 workshop, proposing a $25,000 property deductible (up from $1,000) to reduce premiums by about 18.6%, a $2 million per‑claim liability cap and mixed changes across coverages. The renewal was on the consent agenda for approval.
City staff briefed the Board of Mayor and Aldermen on an annual insurance renewal proposal with Public Entity Partners during the May 29 workshop that would change deductibles and coverage limits to manage premium costs.
Andrew, a staff member who led the review, said the property premium in the proposal would drop about 18.6% compared with the city’s current policy as a result of raising the property deductible from $1,000 to $25,000. He explained the trade‑off: "If we have a substantial property claim, we have the insurance to support us, and we would be on the hook for the first $25,000 as opposed to the first $1,000," but noted the city has had few property claims historically.
Workers' compensation rates were presented as decreasing by about 6.6% because of industry rate changes, while liability rates — including law enforcement and automobile liability — showed an almost 12% base rate increase. To address rising liability costs, staff recommended raising the per‑claim "each occurrence" limit from $1 million to $2 million; the rates shown in the packet reflect the proposed deductible and limit adjustments.
Why it matters: the adjustments are intended to reduce recurring premium costs while balancing the city’s exposure to a larger out‑of‑pocket payment in the event of a major property loss. Staff framed the changes as part of routine due diligence and market review with vendors and brokers.
The insurance renewal presentation was included on the consent agenda; the transcript shows the item presented for approval but does not include a recorded vote in the provided excerpt. If the board approves the consent agenda in a single motion at a later point in the meeting, the renewal would be adopted under that action.
