COUNCIL AGENDA ITEM
SUBJECT:
title
Lines of Coverage Insurance for FY 2027
body
DEPARTMENT:
Finance
SUMMARY:
Staff worked with Brown & Brown on solicitation of renewals for all lines of insurance coverage. This item is intended to update the Council on the City’s property, liability, automobile, workers’ compensation and public official’s insurance renewal premium as solicited by our broker, Brown & Brown.
The City’s property, liability and workers compensation policies are due to renew 10/01/2026. The renewal negotiations resulted in an overall premium reduction of $60,919 compared with the expiring policies.
The City experienced property value increases of 21.66%, payroll increases of approximately 10% and increased automobile values around 20%.
Despite the exposure increase, several rate reductions generated savings, including a 17.83% Property rate reduction, a 44.35% rate reduction for inland marine property, and a 16.20% Workers Compensation rate reduction. These savings are attributed to the city’s efforts to reduce losses by maintaining a safe workplace and promoting loss control methodology throughout the City. The Workers Compensation losses in particular have improved significantly over the last two years, resulting in an improved experience modification factor.
BUDGETED ITEM: ☒ Yes ☐ No ☐ Not Applicable
Dependent on adoption of the fiscal year 2026-2027 budget.
BUDGET AMENDMENT REQUIRED: ☐ Yes ☒ No ☐ Not Applicable
RECOMMENDED ACTION:
Staff’s recommendation for motion to approve the FY 2027 Lines of Coverage Insurance and authorize the City Manager to execute all documents to bind coverage up to and including the 2-year rate lock.