Lockton Companies, Inc., who has been the City’s insurance broker since 2005, and monitors possible insurers interest in the non-utility property, auto physical and contractor’s equipment. All discussions are also reviewed by Charlesworth Consulting, LLC, the City’s risk management consultants.
Staff recommends approval as follows:
1. Non-Utility Property: Midwest Public Risk (MPR) – Missouri, a risk pool. Because MPR is a risk pool, the City has already accepted the by-laws.
2. Buildings and Business Personal Property with a $25,000 each occurrence deductible.
3. Contractors Equipment coverage which has a $10,000 deductible currently.
4. Auto Physical Damage coverage with a $10,000 deductible (recognizing that losses are still adjusted on an Actual Cash Value – depreciated basis).
Due to Independence Power and Light’s operational changes, changes were made in the 2020-2021 plan year to separate the City’s Non-Utility property and Utility property as the incumbent carriers declined to renew all City property under one program. This action item is strictly for City Non-Utility property as that program is part of a larger “group” plan with a common July 1st policy inception date.
As with any risk pool or insurance carrier, coverage continues to be regularly reviewed for comprehensive coverage at a competitive price. MPR has been a good partner for the City.
Risk Management’s Property goals for the next 12 months are:
1. Continue monitoring the valuation of the City’s properties to meet the underwriting requirements of MPR coverage.
2. Watch the property insurance market for possible opportunities for the future, including the evaluation of deductible options when available.
The City, by utilizing the valuation services of Duff & Phelps and the evaluation services provided through MPR on select locations, is in a much better underwriting position in the future for insurer options should that be come necessary.