DEPARTMENT: Office Of Risk Management
FILE TYPE: Consent Action
TITLE
title
Authorization To Renew Commercial Automobile Insurance Contract With Travelers Insurance
end
PURPOSE/ACTION REQUESTED
Authorize the Enterprise Finance and Information Services Director to renew the commercial automobile insurance contract with Travelers Insurance (Travelers).
SUMMARY
While Dakota County (County) is self-insured for general liability exposures, the County purchases several types of commercial insurance (property, crime, and auto) where it makes financial sense. The County's auto insurance policy with Travelers is up for renewal on July 1, 2024. Marketing of the auto insurance and benchmarking with other metro counties confirms that Travelers pricing for the County is still competitive.
The auto insurance market for public sector has significantly hardened due largely to insurers adversity to insuring the risks associated with law enforcement vehicle liability and the County's options for vehicle insurance have been dramatically impacted by this. In an effort to manage these challenges, Risk Management worked with our insurance broker to pursue quotes that reflected higher/additional deductibles to obtain the most cost-effective options. Our insurance broker was unable to solicit any comparison bids and Travelers, our long-standing insurer, has indicated that if the County does not elect to renew coverage with Travelers, they would no longer quote our line of business for coverage in the future.
Travelers insurance provided a quote of $470,506. The premium quote with Travelers reflects a 33 percent increase from last year's premium and equates to an increase of $267 per unit. This increase reflects current conditions in the public sector auto insurance market as well as the County's most recent loss history (2021-2023), which increased from the previous three-year period.
The Travelers policy provides a per claimant limit of $500,000 and a per accident limit of $1,5...
Click here for full text