|In September 2013, at the conclusion of a comprehensive Request for Proposal (RFP) process related to the provision of property, liability and workers’ compensation insurance and risk management services for the Township, the Board of Directors selected Texas Municipal League Intergovernmental Risk Pool (TMLIRP) as the Township’s insurance provider.
The Township’s current property, liability and workers’ compensation policies will expire on January 1, 2017. Quotes have been received from TMLIRP for policies covering the period January 1, 2017 – January 1, 2018. A summary of the types of coverage and corresponding premiums, deductibles and limits of liability is attached for review. In total, the Township’s annual premiums are decreasing by $24,721, or 4.8%, as outlined in the following two paragraphs.
Property and liability insurance premiums are increasing by $19,988, or 5.9%, from the current year total of $338,868 to the renewal total of $358,856. The quotes are based on maintaining the same level of deductibles for all policies and also maintaining the same limits of liability for the general liability, errors and omissions, automobile liability, boiler and machinery, and crime policies. The limits of liability have increased for the automobile physical damage, real and personal property, and mobile equipment policies based on the addition of new assets. The increases in rates are based on activity within the entire TML insurance pool, which has experienced serve losses over the last few years due to several significant weather events. In particular, losses from hail and flooding events have negatively impacted the fund. Additionally, TML’s auto liability line of coverage continues to experience greater than expected losses.
For the Township’s workers’ compensation policy, TMLIRP has provided a renewal quote of $129,507, which is $44,709 (25.7%) lower than the current premium of $174,216. The premium is decreasing due to a favorable adjustment in the experience modifier from 0.97 to 0.70 based on the Township’s loss history over the past three years.
Ms. Carolyn Miller of RWL Group, the Township’s insurance consultant, has reviewed the renewal quotes from TMLIRP and recommends Board approval.