02-59 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
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AN INSURANCE RISK MANAGEMENT REVIEW
PREPARED
FOR:
City Of Elgin
I50 Dexter CT
11
Elgin, IL 60120
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10/01/01 - 10/01/02
PRESENTED BY:
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ROGER LENART, CIC
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INTRODUCTION OF THE SERVICING TEAM
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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.
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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
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$ 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
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$ 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
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`0 OF Et.Ci
• ti Agenda Item No.
City of Elgin
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February 8 , 2002 N113 r ���i
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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
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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
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