FROM: Stacey Barnier, Director of HR and Risk Management
SUBJECT: Renewal of property and casualty insurance coverages
RECOMMENDATION:
title
Approve renewal of property and casualty insurance with Alliant Insurance Services and the Marsh & McLennan Insurance Agency LLC for fiscal year 2022-2023 in an amount not to exceed $358,640 with a contingency of $5,000 to account for extreme dislocations in the insurance market that might change some of the quotes prior to binding coverage.
body
BACKGROUND:
SBCERA conducted Request for Qualifications followed by a Request for Proposals in Spring 2020 with the help of G2 Risk Consulting to test the market and put in place appropriate coverage in various areas of our property and casualty risk management program. Alliant Insurance Services was awarded the contract for our Fiduciary Liability and Employment Practices insurance coverage whereas Marsh & McLennan Insurance Agency LLC was awarded the contract for the remainder of our casualty insurance coverages including cyber, property, general liability, excess/umbrella, Crime, and worker's compensation coverages.
Both carriers shopped SBCERA's risk portfolio to various carriers in based on the lines of coverage. Industry literature as well as discussions with our brokers illustrate that that the insurance market has significantly hardened as a result of the Covid-19 pandemic. While we are seeing an overall increase in premiums, this is not surprising given the current state of the world. Fiduciary Liability coverage costs have continued to rise primarily as a result of the significant increase in excessive fee litigation in the defined contribution space nationwide as well as costs associated with Alameda-decision related claims here in California.
As a result of the market conditions, we are also seeing an increase in our property policy because the building has increased in value. The cyber insurance market conditions have dramatically changed, so mu...
Click here for full text