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Various RTA Insurance Coverages 2024-2025
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DESCRIPTION: Renewal of various insurance coverages for policy period 2024-2025. |
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, or her designee, to proceed with renewal of specified insurance coverages for the policy period 6/1/24-6/1/25 in the amount of $2,391,134.57.
[NOTE: Parametric (hurricane) coverage, currently in force and discussed below, will expire on 8/31/24; renewal approval is sought today for policy period 9/1/24-6/1/25.]
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ISSUE/BACKGROUND:
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RTA has historically renewed a group of various insurance coverages on June 1st of each year. These include Overhead Catenary Systems [“OCS”], Property, Public Entity/Employment Practices Liability, Crime, and Flood. A relatively new coverage, termed “Parametric”, specifically designed to cover hurricane/named storm damage, was approved by the Board of Commissioners and secured in Third Quarter of CY 2023. All policies are marketed and placed by the RTA insurance broker of record, The Kennedy Financial Group of Louisiana, Inc., and provide optimal coverage at the most competitive cost.
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DISCUSSION:
It is necessary that RTA proceed with renewal of these insurance coverages through the RTA broker of record, The Kennedy Financial Group of Louisiana, Inc., on a timely basis:
Overhead Catenary Coverage [“OCS”]: Total Insured Value of $29,060,797, covering all catenary lines in RTA streetcar system, including wires and poles. Total limits: $12M.
Property: Total Insured Value of $120,311,275, extending to thirteen (13) locations, inclusive of buildings and contents, in addition to corollary structures (station stops, substations, etc.) and the land-based portion of the Canal Street Ferry Terminal.
Public Entity/Employment Practices Liability: $5M per wrongful act, covering public officials/employees for errors or omissions in duty.
Crime: $1M/$500,000 limits, covering forgery and alteration, on-premises/off-premises theft and burglary, computer fraud, funds transfer fraud, and related financial crime.
Flood: Twelve (12) locations. Limits of $500,000 per building, with the exception of the chassis wash at ENO with limits of $250,000.
Parametric: Calculation Locations are distributed via 32 “pins” across the RTA’s service area.The policy limit ($4M per occurrence) is distributed equally across all covered locations.
Details of the respective coverages can be found in the Resolution and associated attachments.
For comparative purposes, the total cost for these respective coverages for policy period 2023-2024 was $2,491,765.57. With favorable market conditions, the total cost for the same coverages for policy period 2024-2025 is now $2,391,134.57, yielding a decrease of $100,631.00 from last year (approximately 3.1%).
This decrease is directly attributable to moderation of property rates, carrier pricing stabilization, and the widening of insurer risk position.
FINANCIAL IMPACT:
$2,391,134.57
Funds for these contracts are available from the RTA Operational budget. (See attachments for details.)
NEXT STEPS:
Proceed with renewal of insurance coverages as indicated above.
ATTACHMENTS:
• Resolution for Renewal of Various Insurance Coverages [2024-2025]
• RTA Comparison Spreadsheet: 6/1/24-2025 Insurance: Expiring versus Renewal
• Marketing Summary Report - Property/OCS
• RTA Wright National Flood Renewal 2024-2025
Prepared By: Marc Popkin
Title: Risk Management Counsel
Reviewed By: Mark Major
Title: Deputy CEO
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
5/1/2024
Lona Edwards Hankins Date
Chief Executive Officer