Madison City OKs new insurance package, authorizes mayor to sign up to $430,000

The Madison City Board of Public Works voted Jan. 21 to approve a new insurance package that pairs Selective Insurance on liability lines with Chubb for property, and authorized the mayor to sign final insurance documents provided the total premium does not exceed $430,000.

City officials and brokers pitched the combined proposal after a detailed review of market conditions and competing quotes. Broker Greg of Gardner Insurance told the board that the property market is driving large increases in pricing and that, "that 10% increase year over year is kinda flat in today's world." He and colleagues emphasized that fewer carriers remain willing to underwrite public-entity risks, which compresses competition and narrows policy options.

The board heard that the recommended package keeps the city's expiring property deductible at $25,000 for a blanket building-and-contents schedule (the proposal described a blanket building and contents value in the tens of millions) and that Chubb has agreed to include recently acquired stoplights on the policy. Brokers flagged several underwriting changes carriers are imposing nationwide — higher deductibles for wind/hail and domestic-water losses, narrower flood classifications, and reduced umbrella capacity — as drivers of cost.

Brokers also recommended changing cyber carriers. Greg and colleague Andy cited two cyber offers and recommended CFC (a Lloyd's of London program) over the incumbent because CFC carries a lower retention and higher extortion sublimit. "Your expiring carrier HCC is requiring a 50% retention, and CFC is requiring a 5% retention," Greg said, adding that CFC's extortion protection would be $3,000,000 versus $1,000,000 under the expiring option.

After board questions about deductibles, vehicle coverage and law-enforcement limits, a motion to approve the Selective/Chubb package and authorize the mayor to sign the final policy documents passed unanimously. The motion was amended on the floor to set an upper authorization cap of $430,000; board members voted "aye" to approve that amended authorization.

Brokers said minor premium adjustments could follow as underwriters finalize where newly added assets (notably stoplights) are scheduled, but they expected any change to be modest and within the authorized cap. The board also heard that other lines — crime, animal mortality for the city K-9s, and excess/umbrella coverage — were quoted and recommended consistent placements, and that the public-entity market remains constrained.

The vote authorizes staff and the mayor to finish terms and sign the policy documents up to the approved amount. No ordinance or statutory citation was introduced or amended during the discussion; the action was a contractual authorization for the city's annual insurance renewal.

Funding and next steps: staff and brokers said they will finalize placement details with carriers over the coming days and return any material differences to the mayor before execution if the premium nears the board-approved ceiling.