Submitted By
Tony Fioretti, Assistant Village Attorney
Reviewed By
A.M. Zayyad, Deputy Village Manager
Agenda Item Title
Title
A Resolution Authorizing the Purchase of Excess Public Entity Liability Insurance, Excess Workers’ Compensation Insurance, Property Insurance, Crime Coverage, and Cyber Liability for the Village of Oak Park for Fiscal Year 2025 in an Amount Not to Exceed $864,671
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Overview
Overview
The Resolution authorizes the purchase of excess insurance for amounts over the Village’s self-insured retention amounts for coverage for public entity liability insurance, excess workers’ compensation insurance, property insurance, crime coverage, and cyber liability for fiscal year 2025.
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Recommendation
Recommendation
It is recommended that the Village adopt the Resolution.
Background
This is a core service priority. The Village has been self-insured for liability, workers’ compensation, and property claims, and crime coverage since 1977 up to the Village’s retention amounts. The Village supplements its self-insurance program by purchasing insurance for amounts above its retention for these categories. The coverage amounts and deductibles for the Village’s insurance remain the same in 2025 as they were in 2024. In 2015, the Village decreased its self-insurance retention amount for liability coverage from $2,000,000 to $750,000.
The total premium cost for 2025 is the not-to-exceed amount of $864,671. The final total premium cost for 2024 was $743,052, making this year’s increase approximately 16%. This amount includes the following premiums as solicited by the Village’s insurance broker, Alliant/Mesirow Insurance Services: (1) public liability insurance - $311,722; (2) excess workers’ compensation insurance - $155,301; (3) property and casualty - $126,920; (4) crime coverage - $5,772; and (5) cyber liability - $16,761. Premiums have increased for 2025 over 2024 premiums for excess liability, property, and workers’ compensation due to overall increases found in the national municipal marketplace for such coverages. The Village’s broker had to place a new provider for Excess Public Entity Liability Insurance due to the 2024 provider’s exit from the Cook County insurance marketplace. The increase is driven in large part due to the placement of Law Enforcement and Public Entity Liability Excess Insurance. Our broker indicated that over a dozen market participants contacted no longer underwrite the Cook County marketplace.
Fiscal Impact
The total cost to purchase the insurance coverage for the fiscal year 2025 is the not-to-exceed amount of $880,000 which is to be paid from the 2025 Self Insured Retention Fund budget.
DEI Impact
N/A
Alternatives
Not adopt the Resolution and seek alternative quotations. This Alternative is unlikely to result in a meaningfully different premium amount and is not recommended. This Alternative runs the risk of the Village lacking Excess coverage for a portion of 2025.
Previous Board Action
RES 23-375: Approved Purchase of Similar Insurance Policies through Broker for FY 2024
RES 22-321: Approved Purchase of Similar Insurance Policies through Broker for FY 2023
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
The Village’s Professional Services Agreement with its current broker, Alliant/Mesirow Insurance Services expires on December 31, 2025. The Village issued a competitive solicitation for insurance brokerage services in August 2022. The Village intends to issue a similar solicitation in Summer 2025, in enough time to renew coverages with the selected broker for FY 2026
Intergovernmental Cooperation Opportunities
N/A