Broken Arrow City Council
Meeting of: 07-05-2016
To: Mayor and City Council
From: Office of the City Manager
Title:
title
Approval to Purchase the Fiscal Year 2016-17 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 2016-17 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 $150,686,437.00. 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 is $195,940.00. During the renewal process, Staff discovered that some city equipment was covered by two insurance policies. The coverage was corrected which resulted in a slight decrease in premium for this fiscal year. OMAG is a quasi-municipal entity that was established by state statue in 1979 to provide insurance coverage and other products to Oklahoma municipalities. This is the fourth year the City has used them for property insurance.
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.
Cost: $201,537.00
Prepared By: Jannette McCormick, Acting Human Resources Director
Reviewed By: Finance Department
Assistant City Manager - Administration
Legal Department
Approved By: Michael L. Spurgeon, City Manager
Attachments: Renewal Letter of Recommendation
Recommendation:
Approve the Purchase of Fiscal Year 2016-17 Citywide Property Insurance Policies with the Oklahoma Municipal Assurance Group (OMAG) and Chubb Insurance.