Broken Arrow City Council
Meeting of: June 15, 2026
Title:
title
Approval of and authorization to execute the purchase of ACE Municipal Advantage Public Entity Liability coverage with limits of $2,000,000 per claim/$2,000,000 aggregate through ACE American Insurance Company (Chubb) effective July 1, 2026
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Background:
The City seeks to obtain Public Officials Liability and Employment Practices Liability insurance to protect the City, elected officials, appointed officials, and employees against claims arising from the performance of governmental duties and employment-related actions.
This coverage provides protection against claims alleging wrongful acts, errors, omissions, mismanagement, employment-related claims, and other liabilities that may arise in the course of municipal operations. The policy also includes access to Employment Practices Liability (EPL) Risk Management Services, which provides legal resources, employment law updates, policy templates, training opportunities, and access to employment law experts at no additional cost.
Given the increasing costs associated with litigation, settlements, and defense expenses involving municipalities, the additional coverage provides a greater level of financial protection for the City and its taxpayers. The higher limits also better position the City to respond to significant claims that may exceed the lower coverage threshold.
Insured Persons means the following, but only to the extent such persons are acting solely in their capacities as legally authorized representatives of the Public Entity: 1. all persons who were, now are or shall be lawfully elected or duly appointed officials or Employees; 2. commissions, boards, or other units, and members and Employees thereof, operated by and under the jurisdiction of such Public Entity and within an apportionment of the total operating budget indicated in the application for this Policy; 3. volunteers acting for or on behalf of, and at the written request and under the direction of, the Public Entity; 4. elected or duly appointed officials and Employees of the Public Entity duly appointed at the written request of the Public Entity to serve with an outside tax exempt entity; 5. any person providing services for the Public Entity under a mutual aid or similar written agreement; and 6. elected or duly appointed officials and Employees of the Public Entity as a director or officer of a non-profit organization created and operated under Section 501c(3) of the Internal Revenue code of 1988, amended, for any Wrongful Acts they have committed in their respective capacities as a director or officer of such non-profit organization, provided that: (1) the appointment of the elected or duly appointed official or Employee to such non-profit organization is based solely upon the person’s being an elected or duly appointed official or Employee of the Public Entity; and (2) such elected or duly appointed official or Employee is directed in writing by the Public Entity to serve as a director or officer of such non-profit organization prior to beginning such service.
Employee means any natural person whose labor or services are engaged and directed by the Public Entity (including any part-time, seasonal and temporary employee or volunteer), but only while acting in his or her capacity as such, and any natural person who is leased to the Public Entity, but only if the Public Entity provides indemnification to such leased person in the same manner as is provided to the Public Entity’s employees.
The City's insurance broker, The Arrow Group, obtained a quote from ACE American Insurance Company (Chubb) for the upcoming policy year. Options were presented for a $100,000 limit of liability/aggregate and a $2,000,000 limit of liability/aggregate. Staff recommends selecting the $2,000,000 policy limit option. While the premium is $28,637 higher than the $1,000,000 option, the City would receive double the liability protection for Public Officials Liability, Public Entity Liability, and Employment Practices Liability claims.
Cost: $80,670
Funding Source: General Government 110-1700 and BAMA 220-1700
Requested By: Kelly Cox, Human Resources Director
Approved By: City Manager’s Office
Attachments: Public Officials Quote
New Line Warranty Statement
Public Official Brochure
Public Official Dec and Policy (Example)
Recommendation:
recommend
Approve and execute the purchase ACE Municipal Advantage Public Entity Liability Coverage with limits of $2,000,000 per claim/$2,000,000 aggregate through ACE American Insurance Company (Chubb) effective July 1, 2026
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