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Home My WebLink About95-202 Resolution No. 95-202 RESOLUTION ACCEPTING THE PROPOSAL OF MESIROW FINANCIAL FOR THE 1995-1996 SELF-INSURANCE PROGRAM BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Richard B. Helwig, City Manager, be and is hereby authorized and directed to accept the proposal on behalf of the City of Elgin of Mesirow Financial for the 1995-1996 self-insurance program, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: September 27, 1995 Adopted: September 27, 1995 Omnibus Vote: Yeas 7 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk t ' r Insurance Proposal For City of Elgin October 1, 1995/96 r Table of Contents L Service Commitment 1-2 II. Property Terms and Conditions 3 Summary of Values 4 Crime 5 Boiler&Machinery 6 III. Casualty Commercial General Liability 7 IV. Public Officials Liability 8 V. Automobile Coverage and Limits 9 VL Specific Excess Worker's Compensation Guaranteed Cost Plan 10 VII. Excess Liability 11 VIII. Summary Premium Summary and Comparison 12 Comments and Subjects For Discussion 13 IV. Mesirow Financial Background 14 Mission 15 Approach 14-15 Additional Insurance Services 15 Organization 15 Other Capabilities 16 Products and Services 17 Mesirow Financial® Mesirow Financial Service Commitment To City of Elgin The following are the services which, based on our knowledge of the needs of City of Elgin, we commit to continue to perform during the coming year: • Identify the best combination of risk transfer, reduction and assumption consistent with your business philosophy. • • On a continuing basis, analyze exposures and make recommendations for management of risk including program design, communications, priorities and loss control goals. • Negotiate and place all insurance products on your behalf, seeking the most cost-effective program on a long-range basis. • Advise of any change in conditions in the insurance marketplace or the legal climate that may have an impact on your risk management program. • Specify, monitor and coordinate the loss control services provided by your insurance carriers. This is done with our risk management services department and includes: Review and evaluation of loss control reports. Review of loss runs to identify trends and problem areas. Act as communications liaison with City of Elgin and insurance carriers to focus service emphasis in critical areas. • Negotiate resolution of disputed recommendations and suggest alternative solutions. • Monitor and coordinate the claims handling activities of your insurance carriers and act as your liaison with the carriers' claim departments. • Review all losses over $10,000 annually. • • • page 1 Afir Mesirow „,i'!Financial® Mesirow Financial Service Commitment To City of Elgin (Cont.) • Review all documents relating to risk control and transfer including: Contracts Leasing Agreements. Required Insurance Certificates from suppliers, contractors and regular non-owned auto users. • Monitor and verify dividend calculations, experience modifications, property rates and other factors impacting your net cost of insurance. • Maintain all policies on your behalf, verifying their correctness and accuracy. r page 2 Mesirow Afr „„ Financial) r Property Terms and Special perils subject to policy exclusions Conditions Coverage Includes: Water damage including back-up of sewers and drains/accumulation of surface water/wind driven rain Flood - $6,000,000 Earthquake- $16,000,000 - underground pipes $6,000,000 - all other locations Replacement cost valuation for real and personal property, auto physical damage, contractors equipment and computer 100% valuation on real and personal property Agreed amount - waiver of coinsurance on real property, personal property, auto physical damage, contractors equipment and computer Operation of building laws, increased cost of construction and demolition and debris removal $100,000 deductible per claim except 1% for earthquake Business income and extra expense Gross earnings form 30 days extended period of indemnity 50% valuation as respects Contingent Tax Interruption Agreed amount - coinsurance waived Limit excludes ordinary payroll $100,000 deductible • • r page 3 Mesirow AfrA Financial' r Summary of - Amount Values Insured Blanket real and personal property including inventory $69,984,002 Including property of others in your care, custody, control Business income • 1,000,000 Contingent tax interruption 5,000,000 Extra expense 1,000,000 Personal property including inventory at any other 25,000 location (per location) Electronic data processing equipment 1,079,293 Accounts receivable 250,000 Valuable papers 100,000 Contractors miscellaneous floater 16,583,893 Radio equipment floater 1,606,620 Fine arts 83,642 Emergency equipment 508,814 Unscheduled equipment 1,000,000 • • asnuiCarrier: St. Paul Insurance Effective Date: October 1, 1995 page 4 Mesirow ArAirFinancial r Crime Limits Employee dishonesty - per loss $500,000 Money and securities - inside - broad form 500,000 Money and securities - outside - broad form 500,000 Depositors forgery 500,000 Money order and counterfeit currency 500,000 Deductible 100,000 Features: Faithful Performance Agreement applies r m Carrier: St. Paul Insurance MAUI Effective Date: October 1, 1995 page 5 AO Mesirow Financial) Boiler and Comprehensive form - including production equipment Machinery Objects Covered: Heating, air conditioning, cooling, freezers, boilers, miscellaneous electrical apparatus panels, generators, motors, etc. Perils Covered: 1. Electrical injury including artificially generated current 2. Mechanical breakdown 3. Explosion of steam vessels and piping • Type of Coverage Limits Deductible Valuation Direct damage & $16,000,000 $1,000 * Repair or replace Extra expense Business income 100,000 24 hours Actual loss sustained * $2,000 deductible on sewage/water treatment facilities. Joint loss agreement clause IEORD STF„ 41 *Fe( t.kr_sr'- • <is rCarrier: Hartford Steam Boiler ANAND IN�i 18 - Effective Date: October 1, 1995 page 6 ffffMesirow �J Financial r Casualty Commercial Bodily injury and/or property damage per occurrence $2,000,000 General Liability Annual aggregate 3,000,000 and Annual aggregate products/completed operations 3,000,000 Personal injury and advertising liability (excludes 2,000,000 Law Enforcement discrimination and wrongful termination) Llablll Fire legal liability - real property 100,000 Medical payments per person 5,000 Law enforcement- each wrongful act 2,000,000 • Law enforcement- annual aggregate 2,000,000 Coverage Form: Occurrence SIR- $250,000: Applies to bodily injury and property damage Features Include: All premises/operations, independent contractors and products and completed operations including *: • Blanket contractual (does not include automobile lease or rental contracts) • Host liquor liability • Employees as additional insured • Broad form property damage • Extended definition of bodily injury • Incidental medical malpractice • Limited worldwide liability (suits in U.S.) • Automatic coverage - newly acquired organizations (90 days) • Public Executive Officers are Protected Person • Employee benefits liability (each claim and aggregate) Claims made coverage Limits: $1,000,000 each claim 3,000,000 aggregate Deductible: 1,000 Retroactive date: 10/1/87 * Note: all pollution is excluded * Note: Optional Deductible Plan - $750,000 Aggregate SIR m rk aStRIU1 Carrier: St. Paul Insurance Effective Date: October 1, 1995 page 7 Mesirow Afr „,1 i Financial Public Officials Liability Coverage Each claim/annual aggregate $2,000,000 and Limits Self-insured retention each wrongful act 100,000 Coverage Form: • Claims made • Retroactive coverage date: 10/1/87 Note: The limit of liability includes defense costs, charges and expenses. Optional Deductible Plan - $750,000 Aggregate SIR r GO aSnul Carrier: St. Paul Insurance - Effective Date: October 1, 1995 page 8 Mesirow Financial R r Business Automobile Policy Coverage Limits and Limits Limit of liability per accident for bodily injury and $1,000,000 property damage including employer's non- ownership and hired auto liability Automobile medical payments 5,000 Uninsured and underinsured motorists liability 40,000 SIR - $250,000 Note: Optional Deductible Plan - $750,000 Aggregate SIR r OSRUI r Carrier: St. Paul Insurance Effective Date: October 1, 1995 page 9 Mesirow Financial) r Specific Excess Worker's Compensation Guaranteed Coverage A: Statutory: Illinois Cost Coverage B: Employers' liability: $1,000,000 Other states endorsement Voluntary compensation endorsement Rating Basis: Payroll $23,900,000 S.I.R. - $300,000 r Carrier: Safety National Effective Date: October 1, 1995 page 10 Mesirow Art Financial r Excess Liability Coverage Limits and Limits Each occurrence $5,000,000 Annual aggregate 5,000,000 Self-insured retention 0 Terms and Conditions: Exclusions: ERISA Asbestos Pollution Care, custody, and control of real and personal property Employment-related discrimination Uninsured and underinsured motorists liability Sexual and physical abuse Notes: Including first dollar defense Defense coverage is in addition to limits Note: Excess is above Public Officials Liability r MU! Carrier: St. Paul Insurance Effective Date: October 1, 1995 page 11 Mesirow Financial Summary Premium Summary and Comparison Penco Penco St. Paul St. Paul ` With Aggregate No Aggregate Expiring Renewal SIR SIR Real and personal property $39,000 $42,933 $80,991 $80,991 Boiler & machinery 9,024 9,538 9,538 9,538 Employee dishonesty Included Included 1,435 1,435 Crime Included Included Included Included Flood & earthquake 9,900 10,383 7,300 7,300 ' Comprehensive general liabili y 207,799 199,623 126,526 102,500 Police professional Included Included 65,730 52,500 Public officials 44,624 41,946 26,292 26,292 Paramedic liability Included Included Included Included Auto liability Included Included 20,676 18,750 (1' Auto physical damage Included included Included Included Excess workers compensation 79,009 59,444 89,006 89,006 Liquor liability Included Included Included Included Excess liability 180,870 177,315 52,161 49,875 CGL claims administration 61,500 61,500 32,548 37,443 Loss control administration 18,700 18,000 Included Included Mesirow Subtotal $650,426 $620,682 • $512,203 $475,630 WC claims administration 25,000 35,250 76,807 76,807 Avg. CGL claims 390,000 390,000 390,000 390,000 Avg. WC claims 560,000 810,000 810,000 810,000 Total Program Cost $1,625,426 $1,855,932 $1,789,010 $1,752,437 filk , page 12 Mesirow t Are Financial Comments Property and Subjects Signed business income worksheet - agreed amount for Discussion Marine Mail - first class or registered Ocean cargo • Liability Pollution liability or environmental impairment including clean up coverage Crime Kidnap and ransom Computer fraud rik Miscellaneous Discrimination/wrongful termination legal defense coverage or special discrimination/wrongful termination policy • All items, except premiums, contained in this proposal are for illustration purposes only. Please read your policy for specific details. 1♦ page 13 ffMesirow ��j Financial Mesirow Financial Corporate Insurance Services • Background Mesirow Financial's Insurance Services Division was established in 1972 as part of the firm's diversification into the financial services • industry. Our growth was designed to allow us to meet more of our clients' financial needs. • Our Insurance Services Division is the second largest local insurance agency in metropolitan Chicago. We provide comprehensive insurance for businesses and individuals. Besides risk management services, our areas of expertise encompass employee benefits, qualified and non- qualified employee savings plans, and life and disability protection. To maintain Mesirow Financial as a leader in serving the financial Mission needs of businesses and their owners, affluent individuals and investing institutions. To fulfill this mission, we will serve our clients with the highest levels of integrity, service, and performance. "Client Delight" will be our measure of success. We develop an in-depth understanding of the client's business needs, Approach enabling us to create strategies that fulfill the client's risk and human resource requirements. An integral part of our problem solving success is our long-standing and close relationships with many major insurance companies, as well as our ability to create self-funded programs where appropriate. We are contract agents for the following companies: Atlantic Companies Casualty Insurance Company Chubb Group • CNA Commercial Union EBI/Orion Fireman's Fund Insurance Company Hartford Insurance Home Insurance Company Kemper National Companies • Maryland Casualty Company page 14 SiroW Financial® r Approach Northbrook Property and Casualty (Cont.) St. Paul Insurance Company Travelers Insurance Company USF&G West Bend Zurich Insurance Company Additional Aggressive claims services review. Services • Draft authority for certain claims. Safety and engineering services in conjunction with Mesirow Financial Risk Management Services Division and insurance company personnel. Annual internal audit of service and coverages. rOrganization g To service the needs of our clients, Mesirow Financial utilizes a team approach. The teams are directed by principals of Mesirow Financial who have devoted their entire professional careers to the insurance industry. Each has experience in designing, placing, and servicing the most complex programs to satisfy property/casualty, human resource, executive compensation and business planning needs. City of Elgin will be handled by Ronald S. Pavlik and his support staff. • • Your team members are: Ronald S. Pavlik Senior Vice President 708-695-4700 William E. Beckmann Vice President 708-695-4700 John J. Hamilton Account Representative 708-695-4700 Leslie Strock Claims Analyst 708-695-4700 Thomas H. Honn Risk Management Services 312-595-6299 page 15 Mesirow Financial® • Other Expertise in the areas of employee benefits, disability, non-qualified Capabilities deferred compensation, medical and life insurance programs. Since we are part of a full services financial firm, Mesirow is able to handle other needs such as 401(k), pension and profit sharing plans, venture capital, corporate finance, and real estate. r page 16 Mesirow Financial Products and Mesirow Financial provides high-quality financial services for Services businesses, individuals and institutions. Businesses Corporate Finance Private Equity Real Estate Services Risk Management Employee Benefits Investment Advisory Services Investment Services Individuals Investment Services Investment Advisory Services Planning Services Insurance Services Institutions Fixed-Income Sales, Trading & Research Public Finance Equity Sales, Trading & Research Corporate Finance Private Equity Investments Small Capitalization Equity Management Merger Arbitrage Short-Term Fixed-Income Management Correspondent Services page 17 Mesirow R „„. Financial°