Broken Arrow City Council
Meeting of: 06-15-2017
To: Mayor and City Council
From: Office of the City Manager
Title:
title
Approval to purchase the Fiscal Year 2017-18 Citywide Property Insurance Policies with the Oklahoma Municipal Assurance Group (OMAG) and Chubb Insurance
End
Background:
The annual renewal of the Citywide Property Insurance for fiscal year 2017-18 is presented for the Council’s approval. The Oklahoma Municipal Assurance Group (OMAG) currently provides property loss coverage to all major structures, facilities, buildings and mobile equipment. The total property value associated with the coverage is $195,959,269.00. Staff recommends that the Council approve retention of this policy with OMAG.
Chubb Insurance currently provides coverage for the City’s computer system. The total property value associated with the system is $1,554,816.00. Staff recommends that the Council approve the retention of this policy with Chubb.
The annual premium quoted by OMAG, including broker fees, is $232,846.00. OMAG is a quasi-municipal entity that was established by state statue in 1979 to provide insurance coverage and other products to Oklahoma municipalities.
Chubb Insurance’s renewal premium remains unchanged at $5,597.00. Chubb Insurance is a large, well respected company in the insurance industry and is rated Superior (A++) by AM Best Company.
Funding is budgeted in the General Government accounts in the General Fund and Broken Arrow Municipal Authority.
Cost: $238,443.00
Prepared By: Jannette McCormick, Human Resources Director
Reviewed By: Finance Department
Russell M. Gale, Assistant City Manager - Administration
Legal Department
Approved By: Michael L. Spurgeon, City Manager
Attachments: Coverage Proposal
Recommendation:
Approve the purchase of Fiscal Year 2017-18 Citywide Property Insurance Policies with the Oklahoma Municipal Assurance Group (OMAG) and Chubb Insurance.