Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Insurance topic
No spam. Unsubscribe anytime.
Consultant: Independence should pursue $10 million liability limit; budget impact expected
Summary
City consultants and finance staff briefed council members on May 10 about the city’s general liability renewal options and recommended pursuing a higher $10 million limit with a $1 million self‑insured retention, with an estimated $835,000 premium increase relative to current budgeting.
City finance staff and an outside insurance consultant told the Independence City Council at a May 10 study session that the city has workable market options for renewing its general liability program and should consider returning to a $10 million excess limit subject to a $1 million self‑insured retention.
Bob Charlesworth, vice president of Charlesworth Consulting, summarized the market process the city’s broker used and said one market option represented by an A‑rated carrier could provide a $10 million limit at a price roughly 5% above the city’s current budgeted amount for a $5 million limit. Charlesworth said the recommended renewal approach would keep the city's $1 million occurrence retention but move the excess limit back to $10 million; he described the option as "better news than what we had last year."
The briefing described the components of the city's liability program: general premises liability; employment practices liability; law‑enforcement liability; public‑officials liability; and auto liability. Charlesworth said the program is ‘‘all‑inclusive’’ and that the retention level — the amount the city pays before excess coverage applies — increased from $250,000 to $1,000,000 in recent renewals and that market alternatives were limited last year.
Finance director Melissa Cabrera introduced the session and the consultant said cyber liability is handled separately; Charlesworth reported that cyber renewal was ‘‘pretty flat’’ and that cyber premium (~$43,000) would appear separately in the renewal packet.
Council members asked for additional claims history and budgeting detail. One council member requested a five‑year claim run showing how often the city had hit prior retention levels and totals the city paid in self‑insured amounts; Charlesworth and staff said they can provide five years of claims data and predictive modeling the consultant uses when drafting budget recommendations. Charlesworth said his modeling suggests the city may need to target higher reserves and that budgeting for risk management could rise above previously projected increases.
No formal vote was taken at the study session; finance staff and the consultant said they will present a renewal recommendation for council action at a future regular meeting.
