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TO: |
Board of Trustees |
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THROUGH: |
Mary DeLoretto, Interim Executive Director |
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FROM: |
William Greene, Chief Financial Officer |
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PRESENTER(S): |
Dave Pitcher, Claims and Insurance Manager |
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TITLE:
title
2021-2022 UTA Insurance Coverage Update and Proposed Renewal
end
AGENDA ITEM TYPE:
Discussion
RECOMMENDATION:
Informational item for discussion
BACKGROUND:
This insurance renewal proposal is presented as required by Board Policy 2.1.II.F. - Risk Management, which requires:
The Authority will maintain Public Officials Errors and Omissions Insurance in an amount determined to adequately protect the Authority.
The Executive Director will, as necessary, procure other insurance to compensate for losses that would adversely affect the Authority.
DISCUSSION:
The insurance market has experienced significant increases in most markets since UTA’s renewal in 2020. For example, our property insurance has increased by 40%, Cyber Liability by 90% and Public Officials/Employment Practices Liability by 85%. Other increases were much less than expected such as the Railroad Liability only increased by 7.5% where most commuter rail operations are seeing increases in 25-30% range.
UTA is moving to self-insurance on the rideshare program which will result in an estimated savings of more than $4.2M over the next five years.
ALTERNATIVES:
N/A
FISCAL IMPACT:
The proposed annual insurance renewal results in an overall 11.6% decrease in premium this year.
ATTACHMENTS:
None