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ICRMA JPA Renewal / Associated Insurance Premiums
<br />July 7, 2020
<br />Page 2
<br />f. Approve the City's continued participation in ICRMA's Cyber Program from July 1,
<br />2020 to June 30, 2021 at an estimated premium not to exceed $31,000.
<br />3. Approval payment of insurance premiums to Arthur J. Gallagher, Broker, for coverages of
<br />City's assets.
<br />a. Approve the City's General Liability Buffer Program from July 1, 2020 to June 30,
<br />2021 at an estimated premium cost not to exceed $786,000.
<br />b. Approve the City's Workers' Compensation Buffer Program from July 1, 2020 to June
<br />30, 2021 at an estimated premium not to exceed $194,000.
<br />c. Approve the City's Earth Movement & Flood and Difference in Coverage Program
<br />from July 1, 2020 to June 30, 2021 at an estimated premium not to exceed $844,000.
<br />Coverage includes significant enhancement of past coverage.
<br />d. Approve the City's Terrorism Insurance Program from July 1, 2020 to June 30, 2021
<br />at an estimated premium not to exceed $13,000.
<br />e. Approve the City's Underground Storage Tank Program from July 1, 2020 to June
<br />30, 2021 at an estimated premium not to exceed $8,000.
<br />4. Approve the City's obligation to pay the State of California Department of Industrial Relations
<br />(DIR) fee for the Workers' Compensation Program from July 1, 2020 to June 30, 2021 at an
<br />estimated assessment not to exceed $365,000.
<br />DISCUSSION
<br />Staff is recommending that the City Council approve a renewal agreement with Independent Cities
<br />Risk Management Authority (ICRMA) a joint powers authority formed in 1980 in accordance with
<br />California Government Code Section 6500. ICRMA's purpose is to provide; 1) excess and re-
<br />insurance to protect members from extensive financial debt due to large claims, settlements and
<br />judgments, 2) group insurance purchasing power that can offer broader coverage at a lower cost,
<br />3) rate stability, 4) protect individual member cities through pooling of losses, and self-insurance.
<br />ICRMA also offers to its member's actuarial services, safety trainings, claim audits, and policy
<br />reviews. Currently comprised of 16 California cities, (Adelanto, Bell, Downey, El Monte, El
<br />Segundo, Fullerton, Glendora, Hawthorne Hermosa Beach, Huntington Park, Inglewood, Lynwood,
<br />Monterey Park, San Fernando, and South Gate) Santa Ana joined ICRMA in July 2019.
<br />In this renewal period, the City acquired premiums with an overall average increase of 22% over
<br />FY 2019-20. The City's Workers' Compensation excess coverage saw a 15% decrease. The only
<br />significant program change is the increase in coverage for Earth Movement & Flood coverage to
<br />include all property without value restriction. Even with a declining number of excess carriers willing
<br />to provide quotes and an increase in recent claims/settlement sizes trending nation-wide the City's
<br />premium increase is less than the average of other cities in ICRMA.
<br />The General Liability Buffer coverage policy lowers the City Member Retrained Limit (MRL) from
<br />$3 Million to $2 Million per occurrence. The workers' compensation buffer policy lowers the City's
<br />MRL from $2 Million to $1.5 Million per occurrence.
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