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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 $3,774,489 for the policy period of May 1, 2024 to May 1, 2025 (Funding Source: Insurance Fund).
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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.
The property insurance market faced several challenges in 2023, as rates climbed significantly, and capacity shrunk due to poor underwriter performance over multiple years. This was primarily due to catastrophic exposures such as hurricanes, wind/hail, wildfires, and unprecedented winter weather. As a result, the City experienced a 33% increase in its property rate. Additionally, due to the lack of capacity in the property insurance market, the City had to take a 19% self-retention on the second $25 million layer for named windstorm insurance.
However, in 2024, the property insurance market became more stable, and there was an increase in capacity and rate relief. As a result, the City was able to fill the full $50 million of named windstorm insurance without taking a self-retention as it had done the prior year, and still realize a 7% reduction in its property rate.
The general terms and conditions for all the other lines of coverage are similar to last year, with some minor increases to the premiums as set forth in the cover memo.
The total cost to renew the various insurance...
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