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 Risk Manager 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) where it makes financial sense. The County's auto insurance policy with Travelers Insurance is up for renewal on July 1, 2025. 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 public and private sector has recognized significant hardening due to large increases in the frequency and severity of natural disasters, higher repair costs and a large increase in more severe accidents. The public sector insurance market continues to face adversity due to insuring the risks associated with law enforcement vehicle liability. The County's options for vehicle insurance have been dramatically impacted by these factors. 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 Insurance, our long-standing insurer, has indicated that if the County does not elect to renew coverage with Travelers Insurance, they would no longer quote our line of business for coverage in the future.
Travelers Insurance provided an all-inclusive auto quote of $547,977 (Attachment) providing first party physical damage coverage as well as third party liability coverage. The coverage includes a $25,000 liability deductible and a $5,000 deductible for comprehensive and collision. This quote reflects a ...
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