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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 2026 in an Amount Not to Exceed $934,810
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Introduction
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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 2026.
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Recommended Action
It is recommended that the Village adopt the Resolution.
Prior Board Action
The Board has taken following previous actions:
• RES 24-303: Approved Purchase of Similar Insurance Policies through Broker for FY 2025
• 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
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 2026 as they were in 2025. 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 2026 is the not-to-exceed amount of $934,810. The final total premium cost for 2025 was $864,671, making this year’s increase approximately 8%. This is an excellent result in a challenging insurance market.
This amount includes the following premiums as solicited by the Village’s insurance broker, Alliant Insurance Services: (1) public liability insurance - $348,676; (2) excess workers’ compensation insurance - $179,269; (3) property and casualty - $123,161; (4) crime coverage - $5,772; and (5) cyber liability - $18,832. Premiums have increased for 2026 over 2025 premiums for excess liability, property, and workers’ compensation due to overall increases found in the national and local municipal marketplace for such coverages. The Village’s premium for property insurance slightly decreased.
Timing Considerations
The Village’s current insurance coverages expires on January 1, 2026.
Budget Impact
The total cost to purchase the insurance coverage for the fiscal year 2026 is the not-to-exceed amount of $934,810, which is to be paid from the 2026 Self-Insured Retention Fund budget for Insurance Premiums (6026.41071.101.550681).
Staffing Impact
There is no staffing impact associated with this item. The item aligns with the Law Department’s core service delivery regarding administration of the Village’s risk management program.
DEI Impact
There is no DEI impact associated with this item.
Community Input
There has been no community input given in relation to this item.
Staff Recommendation
Adopt the Resolution.
Advantages:
• The Village will have comprehensive excess insurance in the event of a catastrophic loss with respect to an array of coverage areas.
• The Village’s general fund will be protected from a catastrophic loss up to the limits of the Village’s Self-Insured Retention.
Disadvantages:
• There are no disadvantages to this option.
Alternatives
Alternative 1:
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.
Advantages:
• There are no advantages to this alternative.
Disadvantages:
• This alternative is unlikely to result in a meaningfully different premium amount.
• The Village runs the risk of lacking coverage for a some or all of FY 2026, exposing the Village to a substantial risk of loss in the event of a significant liability event.
Anticipated Future Actions
There are no anticipated future actions in relation to this item.
Prepared By: Tony S. Fioretti, Assistant Village Attorney
Reviewed By: Jack Malec, Assistant to the Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution
2. Premium Comparison Summary