2.4 ERMUSR 07-10-2018 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Theresa Slominski—Finance and Office Manager
MEETING DATE: AGENDA ITEM NUMBER:
July 10, 2018 2.4
SUBJECT:
Renewal Premium for LMCIT Property/Casual Insurance
ACTION REQUESTED:
Accept the 2018-2019 Property and Casualty Insurance renewal.
BACKGROUND:
Our annual renewal for Property and Casualty Insurance is effective 7/1/2018 through 7/1/2019.
DISCUSSION:
We have received our renewal premium from the LMCIT for the 2017-2018 year. The 2017-
2018 renewal is $119,629 with a$20,000 per occurrence/$40,000 annual aggregate deductible,
except the Equipment Breakdown has a separate $20,000 per accident deductible. This renewal
is an increase from the prior year of$4,507 or 4%.
We have an increase in premium this year due the Equipment Breakdown and Municipal
Liability categories increasing.
• We had an insurance claim with a Landfill Gas Plant engine failure early 2016
and that is contributing to the increase in equipment breakdown.
• Our experience modification factor increased slightly from .873 to .875, however,
our aggregate factor decreased slightly from 1.014 to 1.010.
I have attached the Renewal Premium Summary for your review, which lists the various
coverages and related premiums. No changes are suggested and so this is informational only.
FINANCIAL IMPACT:
A 4% increase in premium from the prior year, totaling$4,507.
ATTACHMENT:
• 2018-2019 Renewal Premium Summary
Page 1 of 1
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MS PREMIUMS I PREMIUMS
COVERAGES
II 2017; 0 203 ,179 ; 0
18 11
$ 1,208 I 2018 203 ,425
19
Property
1
Mobile Property
: $$ 571:395148
Equipment Breakdown
Included
,
$ Included 54,964 Included I—Crime
$ 23,141
!
Faithful Performance Bond $ 668 $ 640
$ 23:474038_!II
Municipal Liability $ 21,110
$ 2,897 1
I
Automobile Liability
Include
Automobile Physical Damage $ 4,096
Included I
Included
I
Open Meeting Law d
Not Covered
1
Petro—Fund Included
Fireworks Not Covered
No Fault Sewer Back Up Not Covered iir
Not Covered
TOTAL PROPERTY/CASUALTY PACKAGE
Liquor Liability
Excess Liability
I NotNNStCoveredC19Coverede6r2ed9--IIII
Not Covered115,122Not
$ 119,629
TOTAL P/C PREMIUM
34