City of Coral Gables - File #: 23-5469

• File #: 23-5469
• Version: 1
• Type: Resolution
• Status: Adopted
• File created: 3/14/2023
• In control: City Commission
• On agenda: 3/28/2023
• Final action: 3/28/2023
• Enactment date: 3/28/2023
• Enactment #: 2023-59
• Title: A Resolution of the City Commission authorizing the renewal of the Property and Casualty Insurance Program which includes, but is not limited to, property, general liability, automobile liability, public officials errors and omissions, excess workers’ compensation, crime liability, cyber liability, terrorism property and liability, pollution liability, deadly weapon protection coverage, flood, as well as other ancillary lines of insurance coverage and insurance broker fees through Arthur J. Gallagher Risk Management Services, Inc., for a not to exceed amount of $3,930,212 for the policy period of May 1, 2023 to May 1, 2024 (Funding Source: Insurance Fund). (Lobbyist: N/A)

Date	Ver.	Action By	Action	Result
3/28/2023	1	City Commission	adopted by Resolution Number	Pass

Title

A Resolution of the City Commission authorizing the renewal of the Property and Casualty Insurance Program which includes, but is not limited to, property, general liability, automobile liability, public officials errors and omissions, excess workers’ compensation, crime liability, cyber liability, terrorism property and liability, pollution liability, deadly weapon protection coverage, flood, as well as other ancillary lines of insurance coverage and insurance broker fees through Arthur J. Gallagher Risk Management Services, Inc., for a not to exceed amount of $3,930,212 for the policy period of May 1, 2023 to May 1, 2024 (Funding Source: Insurance Fund).

(Lobbyist: N/A)

Body

The City’s Agent of Record, Arthur J. Gallagher Risk Management Services, Inc. (“Gallagher”), has solicited and received quotes from various insurance carriers for the desired insurance policies shown below. 

In addition to seeking quotes from various insurance carriers in the open market, Gallagher also sought to obtain a quote from Florida Municipal Insurance Trust (FMIT) as a possible option to insure the City’s Package, Excess Workers Compensation and Property Programs.  FMIT is a self-insurance trust fund that is administered by the Florida League of Cities.  However, after receiving a completed application and insurance information from the City, FMIT advised that due to the hardening of the property insurance market and the reduced capacity, they will not be providing a quote as they are reserving its capital for renewing members of their trust.

Presented below is the renewal cost of the City’s insurance program in the open market under its current program structure. 

•                     Property:  The property insurance market hardening continues in 2023 as rates continue to climb and capacity continues to shrink.   Multiple years of poor underwriter performance due to CAT exposures such as hurricanes, wind/hail, wildfires and unprecedented winter weather ...