City of San Antonio - File #: 19-6401

• File #: 19-6401
• Type: Miscellaneous Item
• In control: City Council A Session
• On agenda: 9/19/2019
• Posting Language: Ordinance approving the purchase of one year Commercial Insurance Policies for Excess Workers' Compensation Insurance and Cyber Liability Insurance at a total cost of $822,233.00, appropriating funds in the amount of $822,233.00 from the Liability Insurance Fund, and amending the FY 2020 Adopted Budget. [Ben Gorzell Jr., Chief Financial Officer; Debra Ojo, MPA, Director, Risk Management]

DEPARTMENT: Office of Risk Management


DEPARTMENT HEAD: Debra M. Ojo, MPA


COUNCIL DISTRICTS IMPACTED: City Wide


SUBJECT: Purchase of Commercial Insurance Policies


SUMMARY: This ordinance authorizes the City Manager or his designee to procure excess workers' compensation insurance and cyber liability insurance coverages for a one-year policy period, effective October 1, 2019. The estimated cost for all policies is $822,233.00. The individual policy coverage and premiums are:

* Excess Workers' Compensation (Stop Loss) - financially protects the City from work-related injuries or illnesses that exceed a designated retention amount by capping paid losses arising out of a single catastrophic occurrence: (This insurance is recommended for catastrophic loss(es) that could involve multiple employees.)
* Chubb Insurance
* Premium - $524,614
* Deductible - $3M
* Limit - $250M

* Cyber Liability Insurance covers financial losses resulting from data breaches or other cybercrimes:
* AIG Insurance
* Limit - $10M
* Deductible - $500K
* Premium - $177,618

* Excess Cyber Liability Insurance responds to cyber losses exceeding $10M:
* AIG Insurance
* Limit - $10M
* Deductible -$10M
* Premium - $120,001

BACKGROUND INFORMATION:

June, 2019, the Office of Risk Management (ORM), in cooperation with the City's Broker of Record, SOGO Wealth and Risk Management/USI Insurance Services (SOGO/USI), began collecting data and completing applications for excess workers' compensation and cyber liability quotes.
August, 2019, SOGO/USI provided ORM with market quotes, policy analysis and recommendations. We received four responses for excess workers' compensation, six responses for cyber liability and five responses for excess cyber liability. SOGO/USI provided recommendations for policies with best terms, conditions and premium. The recommended policies will be effective October 1, 2019 - September 30, 2020.


ISSUE:

Approval of payment to Chubb Insurance and AIG Insuranc...