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Board renews property/casualty insurance amid rising exposure; total premium rises about $344,000
Summary
The council approved renewal of the city's property and casualty insurance with Travelers at an overall premium of $2,348,008.53, reflecting growth in city assets and payroll.
The Board of Aldermen approved renewal of the city's property and casualty insurance with Travelers, accepting a renewal premium totaling $2,348,008.53 — a $344,000 increase over the prior year — and authorized the mayor to sign the renewal documents.
City officials said the insurance market is "hard" and that the negotiated renewal represented a modest rate adjustment: a 2.1% rate change, with the overall dollar increase driven mainly by added exposure. Officials told the board that the city added personnel, vehicles and property (including a new fire station and police facilities) since the last renewal. Specific increases cited in the presentation included about $5,100,000 in additional property reconstruction value, $2,800,000 in scheduled equipment (inland marine) and an increase in payroll that added to workers' compensation exposure; the city added roughly 42 employees and 48 vehicle units since the prior period.
The board voted to renew the policy; the mayor was authorized to execute the renewal. No alternative carrier or structure was selected in the meeting record.
