DEPARTMENT: Office Of Risk Management
FILE TYPE: Consent Action
TITLE
title
Authorization To Renew Commercial Automobile Insurance Contract With Travelers Insurance
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PURPOSE/ACTION REQUESTED
Authorize the Director of Risk and Emergency Management to renew the commercial automobile insurance contract with Travelers Insurance.
SUMMARY
While Dakota County is self-insured for general liability exposures, the County purchases several types of commercial insurance (property, crime, and auto) when it makes financial sense. The County's auto insurance policy with Travelers Insurance is up for renewal on July 1, 2026. Marketing of the auto insurance and benchmarking with other metro counties confirms that Travelers Insurance pricing for the County is still competitive.
The auto insurance market for both the public and private sectors has experienced significant hardening driven by rising frequency and severity of natural disasters, increased repair costs, and a notable uptick in severe accidents. The public sector continues to face additional challenges due to the heightened risks associated with law enforcement vehicle liability. These market conditions have substantially limited the County's options for vehicle insurance. Our broker was unable to secure alternative quotes for this renewal period, and Travelers-our long-standing insurer-has indicated they are no longer writing new public sector policies. However, they will continue to insure the County based on our long-term relationship and strong loss control practices.
In 2025, to address rising premium costs, Risk Management conducted a vehicle claim loss analysis which demonstrated cost savings by self-insuring the County's licensed fleet for physical damage. As a result, the County moved to a liability-only policy with Travelers in July of 2025. A review of the past 12 months of claims continues to validate the financial benefit of this model.
Travelers Insurance has provided a liability-only auto rene...
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