HomeMy WebLinkAbout9-Consideration of the Award of a Contract for Property, Liability and Workers' Compensation Insurance1 •
TRUC EE D 11 NE
Public Utility District
CONSENT
To: Board of Directors
From: Kim Harris
Date: May 01, 2013
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, 2013 and must be renewed.
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Marsh Risk & Insurance Services has been the District's insurance broker since 2001.
On March 7, 2012, the Board renewed the District contract with Marsh Risk &
Insurance Services with the option to extend the contract for two additional one-year
periods.
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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 2012/13 2013/14 Renewal Comments
General Liability
One Beacon
135,601
141,820
Excess Liability
AWAC
21,400
22,200
Workers' Comp
US Fire
166,410
152,050
Earthquake
Landmark/Essex
76,516
81,546
Crime
Chubb
4,537
4,537
Pollution
Steadfast
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Broker Fee Marsh
Total
55,000 60,000
459,464 462,153
Estimate
3-year policy 2011/14;
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 $2,700 more than the prior year.
4. FISCAL IMPACT
The proposed property, general liability, and workers' compensation cost is $462,153,
which is less than 1 % change from the prior year's cost. It is also $45,868 lower than
the budgeted insurance expense for the remainder of FY12 Budget and $47,861 lower
than the first five months of the FY13 Budget.
5. RECOMMENDATION
A) Award contracts for the property, liability, and workers' compensation insurance for
the period beginning June 1, 2013 and ending June 1, 2014.
B) Extend Marsh Risk & Insurance Services contract for 1 year.
- 11��---A el
Kim Harris
Human Resource Manager
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Michael D. Holley
General Manager