Title
Purchase of Property and Casualty Insurance Policies for the City of Phoenix (Ordinance S-52990) - Citywide
Description
Request to authorize the City Manager, or his designee, to purchase various property and casualty insurance policies on behalf of the City from July 2026 through June 2027. Further request authorization for the City Controller to disburse funds, not to exceed $23,000,000.
Report
Summary
Competitive quotes are sought from all viable commercial insurance markets to assure the best coverage and cost available. The total estimated cost for all insurance is approximately $23,000,000 for Fiscal Year (FY) 2026-27, down from $23,855,820 in the current year. Nationwide demand for high-limit liability coverage continues to grow while fewer insurers are willing to provide it, especially for public entities with complex, high exposure operations. Rising claim frequency and severity, both nationally and in Phoenix, continue to add pressure to premiums rates. Despite this challenging environment, meaningful reductions were achieved all while maintaining or increasing coverage.
Citywide insurance policies are purchased from the Risk Management Self-Insurance Fund or the Workers' Compensation Self-Insurance Fund and are then allocated to each department's budget. Funds for special policies purchased are available from those department's budgets. The amount requested is based on estimated rate increases as advised by the City's contracted insurance broker. Depending on final quotes, staff may need to return to Council for a retroactive increase in spending authority.
Insurance Policy Overview
Blanket Property and Boiler and Machinery
- Department: Citywide
- Estimated Cost: $7,400,000
Excess Liability (Multiple Layers)
- Department: Citywide
- Estimated Cost: $10,979,982
Excess Workers' Compensation
- Department: Citywide
- Estimated Cost: $441,651
Network Security and Cyber
- Department: Citywide
- Estimated Cost: $1,658,184
Police Aircraft Liability and Hull
- Department: Police
- Estimated Cost: $541,540
Aviation Airport Liability
- Department: Aviation
- Estimated Cost: $745,525
Miscellaneous Property and Casualty
- Department: Citywide
- Estimated Cost: $1,233,118
Financial Impact
The amount will not exceed $23,000,000, comprised of funds from the Risk Management or the Workers' Compensation self-insurance funds, and are included in the FY 2026-27 budget.
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher and the Finance Department.