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Mount 1'r ,,til wc( <br />Village of Mount Prospect <br />Mount Prospect, Illinois <br />INTEROFFICE MEMORANDUM <br />TO: DAVID STRAHL, ACTING VILLAGE MANAGER <br />VS <br />FROM: FINANCE DIRECTOR <br />12- <br />DATE: DECEMBER 5, 2014 <br />SUBJECT: 2015 PROPERTY AND WORKERS COMPENSATION INSURANCE PROGRAM <br />PURPOSE: <br />To present a recommendation for the property and workers compensation insurance program for the <br />policy year beginning January 1, 2015 and ending December 31, 2015. <br />DISCUSSION: <br />The Village's current property and workers compensation insurance policies are set to expire on <br />December 31, 2014. With the assistance of the Village's insurance consultant, staff sought quotes with <br />the existing broker and insurance companies to secure coverage for 2015. There remains just a single <br />competitive insurer for the excess workers compensation - Safety National while Federal Insurance <br />(Chubb) has been the most competitive on cost and coverage for property. The following is a brief <br />summary of our expiring insurance program, an analysis of the proposal received, and a summary of <br />the insurance package being recommended by staff and its consultant. <br />Expiring Program <br />Attachment I provides a listing of the current schedule of insurance in force, showing the type of <br />coverage, the carrier, policy limits, and the broker of record. <br />Village buildings and vehicles were insured this past year by Federal Insurance (Chubb) Company. <br />Property values on which the premium was based totaled $95,296,056. A $25,000 deductible is in <br />place for this coverage. The annual premium was $101,750. The broker offering the coverage was <br />Arthur J. Gallagher and Co. <br />Excess workers compensation coverage was purchased from Safety National, which insured the Village <br />for individual claims in excess of $600,000. There is a $1 million aggregate limit for worker <br />compensation claims. The annual premium was $81,465. The broker again was Arthur J. Gallagher <br />and Co. <br />Proposal Received <br />Nugent Consulting Group assisted the Village in securing proposals from our current broker and <br />underwriters. Attachment II presents a summary of the 2015 insurance renewal for the upcoming policy <br />period. A breakdown of premium by coverage type for policy year 2013 and 2014 is also included. <br />The renewal quote for property coverage increased $2,865, or 2.8% from the prior year and totals <br />$104,615. Insurable values during the same period increased 2.9%. The renewal quote for excess <br />workers compensation coverage increased $6,043 or 7.4% from the prior year and totals $87,508. The <br />self-insured retention level did not change from the prior year and remains at $600,000. The total for all <br />premiums and commissions for selected coverage levels is $204,505, an increase of 4.55% from the <br />2014 premium. <br />