TO: AC Transit Board of Directors
FROM: Aimee L. Steele, General Counsel/Chief Legal Officer
SUBJECT: 2025-2026 Transit Operations Insurance Program Renewal
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to bind the District's 2025-2026 Transit Operations Insurance program.
Staff Contact:
Aimee L. Steele, General Counsel/Chief Legal Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Authorizing the General Manager to bind the proposed 2025-2026 Transit Operations Insurance program will allow the District to maintain its risk retention and risk transfer programs at the current optimum levels for the 2025-2026 policy period.
BUDGETARY/FISCAL IMPACT:
The total budgetary impact of binding the proposed insurance coverages as recommended by staff will not exceed $15,722,230.
BACKGROUND/RATIONALE:
The District's insurance program is renewed on an annual basis. The District's current insurance program includes the following coverages: excess liability (general and auto); excess workers' compensation; commercial crime; cyber-liability; fiduciary liability business travel accident; commercial property; and deadly weapons response. All coverage, except for the commercial property and deadly weapons response, will expire at 12:01 a.m., April 26, 2025.
Below are the recommended insurance renewals for the 2025-2026 Transit Operations Insurance Program:
AC Transit's Transit Operation Insurance Program
Insurance Coverage Line
PY24-25 Expiring Premium
PY25-26 Renewal Premium
Dollar Change
% Change
Excess Liability Insurance
$14,104,936
Not to exceed $15,000,000
$895,064
6.3%
Excess Workers' Compensation
$474,502
$502,715
$28,213
5.9%
Commercial Crime
$17,376
$17,376
$0
0.0%
Cyber-Liability
$174,452
$164,134
-$10,318
-5.9%
Fiduciary Liability
$32,590
$32,590
$0
0.0%
Business Travel Accident
$5,415
$5,415
$0
0....
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