STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: September 27, 2023
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Office of Risk Management
EXECUTIVE: Kimberly Bizor Tolbert
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SUBJECT
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Authorize the City’s contracted broker of record, McGriff Insurance Services, LLC., to purchase insurance policies for commercial property, boiler and machinery and loss control, terrorism, cyber liability, fine arts, crime, aviation, flood, media professional liability, general liability, and other lines of coverage as needed for the period October 1, 2023 to September 30, 2024 - Not to exceed $13,024,221.92 - Financing: Risk Management Fund (subject to annual appropriations)
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BACKGROUND
These insurance policies will provide coverage for commercial property insurance, boiler and machinery and loss control, cyber liability, aviation, crime, fine arts, flood, media and professional liability, and general liability insurance policies on behalf of the City of Dallas. The current policies will expire on September 30, 2023.
The insurance policies secured by McGriff lnsurance Services, LLC. will provide commercial insurance for the following types of coverage:
• Property - buildings, contents, business interruption, terrorism, extra expense, and debris removal
• Aviation - police helicopters and drones
• Crime - employee dishonesty, forgery, and fraud
• Fine arts - works of art owned by the City
• Flood - damage to property caused by flood
• Media professional liability - broadcasting operations at WRR-FM
• General liability - liability exposures specific to Southern Skates as well as the Jack Evans Police Headquarters parking garage as required by the contract
• Cyber Liability - Network breach events to include computer forensics, crises management and public relations expenses, consumer notification, forensic and legal expenses, credit monitoring services, systems failure business interruption, security and privacy liability, to include coverage for legal defense costs and damages for financial loss suffered by others due to failure of computer security, Payment Card Industry-Data Security Standard fines and penalties, and Cyber extortion
The City's property values total approximately $4.5 billion. Insurance premium reflects a higher rate per $100.00 of total insured values, new construction added values, and the condition of the insurance market, specifically property and cyber liability.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 24, 2020, the City Council authorized a service contract with McGriff lnsurance Services, Inc., for broker of record services granting the recommended vendor the authority to purchase commercial property insurance, cyber liability, aviation, crime, fine arts, flood, media and professional liability, and general liability insurance policies on behalf of the City of Dallas for a term of three years, with two one-year renewal options by Resolution No. 20-1008.
On September 23, 2020, the City Council authorized the purchase of insurance policies for commercial property/boiler and machinery and loss control, terrorism, cyber liability, fine arts, crime, aviation, flood, media professional liability, general liability, and other lines of coverage by Resolution No. 20-1459.
On September 22, 2021, the City Council authorized the purchase of insurance policies for commercial property/boiler and machinery and loss control, terrorism, cyber liability, fine arts, crime, aviation, flood, media professional liability, general liability, and other lines of coverage by Resolution No. 21-1574.
On September 28, 2022, the City Council authorized the purchase of insurance policies for commercial property/boiler and machinery and loss control, terrorism, cyber liability, fine arts, crime, aviation, flood, media professional liability, general liability, and other lines of coverage by Resolution No. 22-1473
FISCAL INFORMATION
|
Fund |
FY 2024 |
FY 2025 |
Future Years |
|
Risk Management Fund |
$13,024,221.92 |
$0.00 |
$0.00 |
OWNER
McGriff Insurance Services, Inc.
Read Davis, President
Doug Hodo, Vice President