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Renewal of Excess Liability, Automobile Physical Damage, and Cyber Insurance [2025-2026]
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DESCRIPTION: Renewal of Excess Liability, Automobile Physical Damage, and Cyber Insurance for Policy Period 2025-2026. |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
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Authorize the Chief Executive Officer to proceed with the renewal of specified insurance coverages for the policy period 8/1/25-7/31/26 in the amount of $5,913,330.01.
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ISSUE/BACKGROUND:
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RTA annually renews its Excess Automobile Liability/General Liability [“Excess AL/GL”], Automobile Physical Damage [“APD”], and Cyber insurance coverages on August 1st.The policies are marketed and placed by the RTA insurance broker of record, Relation Insurance Services, Inc. and provide optimal coverage at the most competitive cost.
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DISCUSSION:
It is necessary that RTA proceed with the renewal of the Excess AL/GL, APD and Cyber insurance coverages through the RTA broker of record, Relation Insurance Services, Inc., on a timely basis:
Excess AL/GL: Limits $5,000,000; Excess Retained Amount [“SIR”]: Automobile - $1,500,000 per accident; General - $500,000 per occurrence.
Automobile Physical Damage: Total Insured Value [“TIV”]: $112,952,354 covering all RTA vehicles (revenue and non-revenue) with a $65M flood limit and a $50,000 deductible (except for named windstorm and flood at 3% per affected TIV with a per occurrence minimum of $250,000).
Cyber Liability: Limits $2,000,000 with a $10,000 deductible.
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Relative to Excess Liability [“Excess AL/GL”], the total cost for the expiring Excess AL/GL program [2024-2025] was $2,887,569.00.
Underwriters willing to write automobile liability for public transportation entities continue to confront significant losses nationwide. The Regional Transit Authority faces additional challenges because numerous markets willing to write automobile liability for buses will simply not insure streetcars. In addition, over the last year, several high-quantum cases have incurred escalated reserves which result in a higher premium structure.
As such, the total cost for the Excess AL/GL renewal program [2025-2026] is now $3,810,458.70. This represents an increase of $922,889.70, or approximately 32% over last year’s Excess AL/GL premium, primarily due to the increase in renewal exposure, but also reflecting recent increases in service and ridership, and the addition of new vehicles to the RTA fleet.
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Relative to Automobile Physical Damage [“APD”], although the declining property market has carriers reducing their capacity in many instances, aggressive broker marketing has resulted in a lower renewal premium this year.
The expiring APD insurance for 2024-2025 covered vehicles with a Total Insured Value [“TIV”] of $95,131,813 for a premium of $2,122,781.57.
The current recommended APD renewal for 2025-2026 will cover vehicles with a TIV of $112,952,354, which represents a 17% increase over the 2024-2025 TIV. Notably, however, the total renewal APD premium is now $2,084,532.00, a decrease of $38,250.00, approximately 2% lower than last year’s APD premium.
The Cyber Liability coverage, which protects against data breaches and other cybersecurity issues, has a $2,000,000 limit and a $10,000 deductible. The cost for the expiring Cyber coverage [2024-2025] was $15,638.11. The current recommended Cyber renewal premium for 2025-2026 is $18,339.31 and represents only a 17% increase over last year’s premium. This moderate increase is attributable to coverage enhancements including expanded cybercrime and system failure endorsements.
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Details of the respective coverages can be found in the Resolution and associated attachments.
FINANCIAL IMPACT:
$___5,913,330.01____________________
Funds for these contracts and related endorsements are available from the RTA Operational budget:
Excess Automobile /General Liability: 01-8300-02-9131-169-00-00-00000-00000
Automobile Physical Damage: 01-8300-02-9132-169-00-00-00000-00000
Cyber Liability 01-8300-02-9181-169-89-00-00000-00000
NEXT STEPS:
Proceed with the renewal of insurance coverages as indicated above.
ATTACHMENTS:
1. Resolution for Renewal of Excess Liability, Automobile Physical Damage, and Cyber Insurance Coverages for Policy Year August 1, 2025 to July 31, 2026
2. RTA Comparison Spreadsheet 8/1/2025-2026 Insurance: Expiring versus Renewal
3. Markets Approached List [Excess AL/GL]
4. Markets Approached List [APD]
5. Markets Approached List [Cyber Liability]
Prepared By: Marc Popkin
Title: Risk Management Counsel
Reviewed By: Tracy Tyler
Title: Chief Legal Officer
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
7/18/2025
Lona Edwards Hankins Date
Chief Executive Officer