Staff recommends approval of Midwest Public Risk (MPR) proposal to provide the City insurance for non-utility property, Contractors Equipment, and Auto Physical Damage.

For all programs, the annual premium would be $511,779 compared to the expiring combined premium of $464,831 – collectively a 10% increase, compared to the 17.8% savings in premium realized last year.  This is reflective of the replacement cost valuations in the City’s property schedule.

Lockton Companies, Inc., who has been the City’s insurance broker since 2005, submitted the renewal proposal. The proposal was reviewed and recommended for approval by Charlesworth Consulting, LLC, the City’s risk management consultants.

The 2022-2023 renewal proposal is the result of an extensive effort by Lockton, Charlesworth, and staff to maintain suitable coverage at a reasonable price. The insurance for utility property was separated from non-utility property last year in an effort to obtain better rates. 

The fiscal impact to the City is $511,778.57.

Property insurance premiums are paid from the Risk Management Fund 093, account number 4293-5207. The premium is then allocated to each department based on their actuarial impact to the premium. Property insurance costs are included in the the proposed 2022-2023 budget