Submitted By
Paul L. Stephanides, Village Attorney
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Authorizing the Purchase of Excess Public Entity Liability Insurance, Excess Workers' Compensation Insurance, Property Insurance and Crime Coverage for the Village of Oak Park for Fiscal Year 2016 in an Amount Not to Exceed $292,407
End
Overview
Overview
The Resolution authorizes the purchase of excess insurance for amounts over the Village's self-insured retention amounts for and workers' compensation coverage and property insurance and crime coverage for fiscal year 2016.
Body
Staff Recommendation
Adopt the Resolution.
Fiscal Impact
The total cost to purchase the insurance coverage for fiscal year 2016 is $292,407, which includes the applicable premiums and broker's fee.
Background
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, deductibles and carriers for the Village's excess insurance remain the same in 2016 as they were in 2015. In 2015, the Village decreased its self-insuranced retention amount for liability coverage from $2,000,000 to $750,000.
The total premium cost in 2016 is $292,407 as solicited on the Village's behalf by its broker, Mesirow Financial Insurance Services. This amount represents a 0.97% increase over the 2015 total premium cost of $289,558. The main reason for the increase is a change in the Village's total property value of $137,063,696 to $143,319,628 for property insurance purposes. The annual premium for property insurance in 2015 was $93,021 and in 2016, the premium is $94,500, representing a 1.6% increase. The premium for excess workers' compensation coverage is virtually the same in 2016 at $69,893 as compared to 201...
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