HomeMy WebLinkAbout9-Consideration of the Award of a Contract for Property, Liability and Workers' Compensation InsuranceAgenda
•
• •
TRUC EE DONNER
Public Utility District
CONSENT
To: Board of Directors
From: Robert Mescher
Date: May 02, 2012
Subject: Consideration of the Award of a Contract for Property, Liability and
Workers' Compensation Insurance
1. WHY THIS MATTER IS BEFORE THE BOARD
The District's annual property, liability and workers' compensation insurance coverage
ends June 1, 2011 and must be renewed.
2. HISTORY
Marsh Risk & Insurance Services has been the District's insurance broker since 2001.
On February 1, 2012, the District requested proposals from other brokers. Proposals
were received from several brokers and the Board selected Marsh Risk & Insurance
Services.
3. NEW INFORMATION
Marsh received quotes from various insurance companies and then selected the
carriers based on price and rating of the company. The quotes received are
summarized below:
Coverage Company 2011/12 2012/13 Renewal Comments
General Liability
One Beacon
136,136
Excess Liability
AWAC
20,000
Workers' Comp
US Fire
187,337
Earthquake
Landmark/Essex
72,151
Crime
Chubb
4,537
Pollution
Steadfast
18,144
Broker Fee
Marsh
65,000
Total 503,305
135,601
21,400
166,410
76,516
4,537
(866) 3-year policy 2011/14;
credit received in 2012
55,000
458,598
Attachment 1 provides more detail of the insurance renewal program proposed by
Marsh as compared to the premiums of the expiring coverage. Overall, the proposed
insurance costs will be about $45,000 less than the prior year.
4. FISCAL IMPACT
The proposed property, general liability, and workers' compensation cost is $458,598,
which is 9% lower than the prior year's cost. It is also $65,000 lower than the budgeted
insurance expense for the remainder of FY12 Budget and $55,000 lower than the first
five months of the FY13 Budget.
5. RECOMMENDATION
Award contracts for the property, liability, and workers' compensation insurance for the
period beginning June 1, 2012 and ending June 1, 2013.
Robert Mescher
Administrative Services Manager
Michael D. Holley
General Manager