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Home My WebLink About02-59 Resolution No. 02-59 RESOLUTION ACCEPTING THE PROPOSAL OF LUNDSTROM INSURANCE FOR UMBRELLA INSURANCE COVERAGE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Olufemi Folarin, Interim City Manager, be and is hereby authorized and directed to accept the proposal on behalf of the City of Elgin of Lundstrom Insurance for additional umbrella insurance coverage, a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: February 27, 2002 Adopted: February 27, 2002 Omnibus Vote : Yeas : 7 Nays : 0 Attest : s/ Dolonna Mecum _ Dolonna Mecum, City Clerk F ii AN INSURANCE RISK MANAGEMENT REVIEW PREPARED FOR: City Of Elgin I50 Dexter CT 11 Elgin, IL 60120 I v v 10/01/01 - 10/01/02 PRESENTED BY: I ROGER LENART, CIC I I v T INTRODUCTION OF THE SERVICING TEAM 1 Lundstrom Insurance offers professional and experienced personnel, who stand ready at all times to serve your organization in any capacity related to the insurance function. We strive to attract high-level employees that have demonstrated superior academic achievement, reached a level of maturity to deal the complex problems, and have the desire to improve through advanced training. We continually seek experienced personnel who can bring to us unique skills and have developed professionalism consistent with our high standards. Our team approach allows us to provide dedicated quality insurance, risk management and claims service to all our clients. You are assured to receive the utmost in personal service. We have organized the following service team approach: ROGER LENART, CIC - Account Executive. Supervision, as well as coordination of the rest of the staff serving their area of responsibility, lies with an agency principle. We assist your firm with risk analysis including identification of exposures, recommend appropriate transfer of risk and proper use of the self- insurance and or deductibles. We believe risk analysis is the heart of your program. Esther M. Lembke - Account Manager. Maintaining a proper relationship with insurance company contacts in order to provide the best combination of protection is essential. We will negotiate with companies for comprehensive coverages and fair jpricing. The markets or carriers, which we use, are selected based on their financial integrity, market share as it relates to particular coverage and quality of local support staff. Heather Friedel - Claims Manager. At the time of a loss, we assist to make sure that the claim is presented in an appropriate and complete manner so that the loss settlement is fair and satisfactory. We will provide pro-active assistance and support to you on all claims. Whenever necessary, we will intervene in any coverage or monetary dispute between you and the insurance carrier. Steve Daluge, MS, CSP - Certified Safety Professional. An expert review of company safety and engineering recommendations and guidelines in implementing them will be a great benefit to your business. In some cases, if appropriate, we will assist you in having them modified or adjusted. Dennis Stanhoff - Surety Bond Specialist. Complicated bond requirements are handled expeditiously and professionally. We will review insurance requirements and suggest options for compliance. I I v UMBRELLA/EXCESS LIABILITY INSURANCE I COVERAGE The Umbrella/Excess Insuring Agreement provides: • excess limits above the primary limits for damages that result from a single catastrophic event; • "drop down"coverage to respond to a reduction in the available primary insurance limit as a result of an impaired total limit, or replace the affected primary insurance if its total limit is exhausted; and • broader than primary coverage. I LIMITS ' $ 10,000,000 or 15,000,000 or 20,000,000 General Aggregate Limit $ 10,000,000 or 15,000,000 or 20,000,000 Prod/Completed Operations Aggregate Limit ' $ 10,000,000 or 15,000,000 or 20,000,000 Personal Injury Limit $ 10,000,000 or 15,000,000 or 20,000,000 Advertising Injury Limit $ 10,000,000 or 15,000,000 or 20,000,000 Each Event Limit I $ 10,000,000 or 15,000,000 or 20,000,000 Law Enforcement Liab-Each Wrongful Act $ 10,000 Insured Retention I COVERAGE HIGHLIGHTS I The Standard Umbrella/Excess form with limits listed above provides coverage over the following forms: • General Liability I • Auto • Law Enforcement Liability(Occurrence) • Employers Liability A separate Excess Errors and Omissions Liability Protection Claims-made form, with a separate limit and deductible, applies over the following forms: • Public Entity Management Liability (claims-made) • Employee Benefits Liability Note: The above Umbrella/Excess forms DO NOT provide excess coverage over the Healthcare Professional Liability form(EMTs and Nurses). I SPECIAL CONDITIONS Umbrella/Excess Liability Insurance can only be provided when St. Paul is the primary carrier, with one exception. Employers Liability underlying coverage can be written with another carrier with a Best rating of"A" or better. Minimum underlying limit requirement is $500,000/$500,000/$500,000. Employers Liability cannot be written over a self-insured program or pool. Premium Summary Insured: City Of Elgin Insurer: St Paul Insurance Policy Term: 10/01/00 to 10/01/01 COVERAGE ANNUAL PREMIUM Umbrella- $10,000,000 $ 32,316 Currently Inforce Umbrella- $1 5,000,000 $47,316 Umbrella- $20,000,000 $ 62,316 DISCLAIMER-The abbreviated outlines of coverages used throughout this proposal are not intended to express any legal opinion as to the nature of coverage. They are only visuals to a basic understanding of coverages. Please read your policy for specific details of coverages CLIENT SERVICES OFFERED Commercial / Industrial Services • General, Umbrella or Excess Liability, Workers Compensation and Vehicle Fleet • Property, Business Interruption, Boiler& Bonds • D&O, Self- Funded and Cost Plus Plans • Equipment Leasing Available Group Insurance and Employee Benefits • Life, Health, Dental, Disability, Drug Card and Vision • Pension and Retirement Savings Plans • PPO's, HMO's, Cafeteria Plans, Payroll Deduction Plans and Self - Insurance Financial & Personal Services • Business Buy/Sell, Key Person and Individual Life • Disability and Health Insurance • Long Term Care Insurance • Personal Excess and Auto/Homeowner Packages 1 I I 1 `0 OF Et.Ci • ti Agenda Item No. City of Elgin qp E xF ' i!k L r«t OL I February 8 , 2002 N113 r ��i N ►� � i TO: Mayor and Members of the City Council FINANCIALLY STABLE CITY GOVERNMENT EFFICIENT SERVICES. ANDQUALITY INFRASTRUCTURE FROM: Olufemi Folarin, Acting City Manager SUBJECT: Additional Umbrella Insurance Coverage PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to award a contract for additional umbrella insurance coverage . BACKGROUND The City Council approved the City' s limited self-insurance program for the period October 1, 2001 through September 30, 2002 at its September 26, 2001 meeting, including $2, 000, 000 pollution coverage . Among the recommendations was the directive for staff to solicit quotations for Umbrella Insurance with coverage of $15, 000 , 000 , $20, 000, 000 and $25, 000, 000 and return to the City Council with a recommendation for award, if any. The City' s insurance broker, Lundstrom' s Insurance solicited quotes for additional coverage on the City' s behalf. Umbrella coverage of $25, 000, 000 is not available. It is staff' s recommendation that the most cost effective increase at this point is to $15, 000, 000 coverage for an additional premium cost of $20, 000, 000 . GROUPS/INTERESTED PERSONS CONTACTED None. INANCIAL IMPACT Sufficient funds ($20 , 000, 000) can be transferred from 630-0000- 796 . 53-04 , Auto Liability, into account number 630-0000-796 . 50-09, Risk Management, Umbrella to cover the additional premium cost . 001*. Additional Umbrella Coverage February 8 , 2002 Page 2 LEGAL IMPACT one . ALTERNATIVES Alternatives include not purchasing additional umbrella coverage, or purchasing $20, 000, 000 in coverage for an additional premium of $40, 000, 000 . RECOMMENDATIONS It is recommended that the City Council accept Lundstrom' s proposal for $15, 000 , 000 of umbrella coverage at a cost not to exceed $20, 000, 000 . Respectfully submitted, _ tow Olu emi ' .•larin • Acting Cite - ager GAC Attachment r Gail Cohen - Umbrella Liability Quotation Page 1 From: "R Lenart" <rlenart @lundstrominsurance.com> To: "Gail Cohen (E-mail)" <cohen_g @cityofelgin.org> Date: 1/17/02 2:11PM Subject: Umbrella Liability Quotation Gail I have finally received the cost for increases the limits on the City's Umbrella Liability Policy. They are as follows: $15,000,000 $52,316 annual premium $20,000,000 $72,316 annual premium This is a charge of$4000 per additional Million of coverage. This quote is good for 60 days so if we are going to act on this we should do it ASAP. Please give me call with any questions. Roger Lenart •