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Council hears insurance renewal: property limit rises to $110M, council seeks more market-comparison detail
Summary
Brokers told the council the city's property coverage returned to a $110 million policy limit without a premium increase; council members pressed brokers to provide documentation showing which lines were shopped and asked for the market comparisons before next year’s renewal; council approved the renewal and payment authorization.
City-hired brokers from Daniel and Henry presented the Washington City Council with this year’s property and casualty renewal on June 15, saying the city’s property insurer returned to a full $110 million policy limit while keeping the premium roughly the same.
Jim Vernon explained that last year’s property coverage limit had been capped at $100 million against $109 million in values; the renewal restores a $110 million limit with a modest rate decrease. He said earthquake capacity reduced from $30 million to $25 million and the brokers offered a separate proposal to purchase an additional $5 million in earthquake coverage from another insurer. Brokers recommended keeping several existing carriers for public-officials and law-enforcement liability and noted the city’s workers' compensation experience modification factor improved from 1.19 in 2021 to 0.97, which reduces the manual premium.
Council members raised questions about whether the brokers had produced a comprehensive market solicitation this year and requested documentation showing which lines were shopped and comparable options. The broker acknowledged not all lines were marketed this renewal cycle and said next year’s renewal presentation would include the full market offering and the comparable quotes the council requested.
Council also discussed deductible options: brokers presented an option to increase the property deductible from $10,000 to $25,000 to reduce the premium by about $9,000. The council approved the renewal and payment authorization by voice vote following a motion and second.
Council members also referenced a past cyber incident, noting an earlier loss of $312,000; brokers said that loss is not an ongoing charge and that the city is not still paying that claim. Council asked staff and brokers to provide the market-comparison documentation by email for distribution to council members.
The council approved the motion to accept the renewal and payment authorization and the item was recorded as passed.
