HomeMy WebLinkAboutCC 3 EXT AUTO INS COVER 9-8-81 "' CONSENT C~?.~.NDAR
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DATE: August l .l Inter--Corn
FROH:
SUBJECT:
Honorable Mayor and City Counc~-~ers.via C.R. Thayer, Interim City Mgr.
Ronald A. Nault, Finance Direct~
Extended Automobile Insurance coverage
RECOMMENDATION
Authorize the Finance Director to extend the automotive liability coverage on
vehicles assigned to specific personnel on a 24-hour a day basis. No additional
appropriation required with this action.
BACKGROUND
while reviewing thecompensation package offered the new City Manager I wanted
to be certain of the best way to protect him and the City from automotive
liability exposure while using his City car.
DISCUSSION
The maximum exposure the City will have from the use of City vehicles out-
side of normal work hours is the $100,000, per vehicle, self-insured retention
portion of our present self-funded insurance program. While I believe very
strongly in the self-funded concept I feel that we should identify those situ-
ations which have higher risk potential and decide, onan exception basis,
whether or not to buy additional risk protection. The City will shortly have
four vehicles which, in my opinion, have the highest risk exposure.
I would reco~-~nd protecting the City's SIR of $100,000 per vehicle by placing
a separate policy, per vehicle, up to a.$100,000 limit. This will protect the
personnel assigned the vehicle and the City from liability claims to this limit.
Any claim above the $100,000 will come under the City's $10,000,000 ,,mhrella
coverage. The cost of this protection may be as high as $1,000 per year per
vehicle. There are sufficient monies budgeted in the Risk Management Fund to
absorb this cost.