Title
Purchase of Property and Casualty Insurance Policies for the City of Phoenix (Ordinance S-44730)
Description
Request to authorize the City Manager, or his designee, to purchase various property and casualty insurance policies on behalf of the City for July 2018 through July 2019; and further request authorization of the City Controller to disburse funds, not to exceed $7,307,075.
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 policies is $7,307,075, up from $6,450,000 in the current year. The majority of the increase ($826,000) is in the Blanket Property line item due to the Burton Barr Library claim. Funds for those policies purchased specifically for the Aviation Department and the Police Department are available from those departments. 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. Funds are available for the payment of these insurance allocations in each department's budget.
Insurance Policy Type Department Estimated Cost
Blanket Property and Boiler and Citywide $3,936,000
Machinery Insurance
Excess Liability Insurance Citywide $2,200,000
(Multiple Layers)
Excess Workers' Compensation Insurance Citywide $300,000
Network Security and Cyber Citywide $265,000
Liability Insurance
Police Aircraft Liability and Hull Insurance Police $107,000
Aviation Airport Liability Insurance Aviation $410,000
Miscellaneous Property and Citywide $89,075
Casualty Insurance
Financial Impact
The amount will not exceed $7,307,075, comprised of funds from the Risk Management Self-Insurance Fund and various departments.
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher and the Finance Department.