HomeMy WebLinkAbout15.a. (Handout) Additional Written Announcement Item 15.a.
(Handout)
Board Meeting of July 1 , 2021
General Manager Additional Written Announcement
RISK MANAGEMENT(new)
4) Latest News regarding Excess General Liability Insurance Renewal
As of June 30, staff has the following insurance renewal informational update. The
FY 2021-22 budget included $850,000 for all insurance premiums. At the time of the
budget adoption on June 3, staff asked for increased authority for the General Manager to
proceed with coverage, at a limit of $1,350,000, given concerns about even higher than
previously foreseen cost increases, and potentially inferior coverage.
During the week of June 21, staff received premium quotes for general and excess
liability for $715,518, which represents an increase of about 42% from the expiring policy.
The coverage includes the necessary inverse condemnation coverage, and self-insured
retention of $500,000 (the same as the expiring policies provided). The property
insurance cost conveyed by the broker on June 30 will be for an amount not to exceed
$350,000. This would provide for a total insurance premium cost of$1,065,518 for
FY 2021-22, which is $215,518 above the budgeted amount of$850,000, but within the
$1,350,000 Board spending authority delegated to the General Manager earlier in June.
At this time, staff intends to fund the $215,518 above budgeted amount from the Self-
Insurance fund dedicated reserves.