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Garden City approves 2025 property and liability insurance renewal amid 23% premium rise
Summary
The commission approved a $1,252,408 renewal from Travelers Insurance for 2025 after consultant James Charlesworth said the market left little competition and staff negotiated concessions to lower an initial increase to about 23%; the city manager was authorized to adjust coverage to reduce costs.
The Garden City Commission on Dec. 17 voted to approve the city’s 2025 property and liability insurance renewal with Travelers Insurance for a recommended premium of $1,252,408.
Charlesworth Consulting consultant James Charlesworth briefed the commission by phone and said a full RFP last year produced only one bid and a 36% premium increase. For the 2025 renewal he said the market offered limited appetite for municipal clients; initial renewal proposals were higher but staff and agents negotiated concessions that limited the increase to roughly 23%. "We were able to make some modifications ... and the agent was able to get some minor concessions to get the increase to 23%," Charlesworth said.
Staff noted the increase reflects a combination of market-rate increases, higher exposure from new city facilities and increases in property valuations. Staff told the commission the increased property deductible for windstorm and hail perils rose (from 1% to 3% per building per occurrence in the presented policy) and that the city could consider options to take on more exposure for lower premiums, but staff’s preliminary review recommended keeping coverage as presented and continuing to explore the market. The commission approved the renewal and authorized the city manager to make coverage modifications that could reduce costs without unreasonable exposure.
The staff memo attached an analysis of the 2024 renewal and the 2025 proposal. Staff said a cost-of-service analysis for electric purchases is planned separately in 2026. The insurance renewal was approved by voice vote.
