BACKGROUND

In April 2015 the Village Board approved 20-month insurance policies for Worker’s Compensation and Property insurance due to the 8-month transition year.  The Village also purchases an excess general liability policy for claims between $1 million and $2 million.  General liability claims higher than this amount are covered by the High Level Excess Liability Pool (HELP).  The excess general liability insurance provider limits its policies to twelve months or less, and as a result the Village Board approved an 8-month policy period for this coverage which ends on December 31, 2015.

The Village’s insurance broker, AJ Gallagher, has received quotes for the 2016 excess general liability coverage and recommends that the Village renew this coverage with Argonaut Insurance Company.  The 2016 cost for this coverage is $75,984 or 3% higher the prior annualized amount.  The amount budgeted in the 2016 Budget for this coverage was $80,000.

Recommendation

It is recommended that the Village Board approve the 2016 excess liability insurance policy with Argonaut Insurance Company at a cost of $75,984.