DEPARTMENT: Office Of Risk Management
FILE TYPE: Consent Action
TITLE
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Authorization To Execute Contract With Arthur J. Gallagher For Insurance Brokerage Services
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PURPOSE/ACTION REQUESTED
Authorize the execution of a contract with Arthur J. Gallagher for Insurance Brokerage Services.
SUMMARY
Dakota County Risk Management has addressed coverage needs through programs of conventional insurance placement and self-insuring. Dakota County is self-insured for general and professional liability claims, worker's compensation and claims arising under federal law. Insurance coverage is currently in place for auto, property, cyber security and crime (including employee fidelity exposures). The Dakota County Liability/Loss Reserve Fund provides funding for claim payments and insurance premiums.
Since 2015, Dakota County has employed the services of North Risk Partners (NRP) to broker the county's insurance policy needs and provide risk management consultation. The County's risk profile has continued to change with increases in cyber security risks and new risks such as the operation of the Lake Byllesby Dam. Risk Management concluded a direct test of the marketplace was needed given the time that had passed since the last request for proposal and a more challenging insurance marketplace.
Risk Management completed a survey of similarly sized self-insured entities to identify vendors to solicit for broker services. Four brokers that support public entity insurance placement were encouraged to send proposals: North Risk Partners, Arthur J. Gallagher & Co. (Gallagher), Willis Towers Watson (WTW), and Brown and Brown. All responders were asked to submit proposals for a 5-year term. Brown and Brown's total cost was $325,000 and the estimated cost for Alliant, who responded to the web posting of RFP, was $304,619. Based on the total costs as compared to the other responders they were excluded from further evaluation. Interviews and reference checks were cond...
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