TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: 2021-2022 District Transit Operations Insurance Program Renewal
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to approve and execute the renewal of the District's 2021-2022 Transit Operations Insurance Program under the terms and conditions recommended by Staff.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Authorizing the General Manager to bind the proposed Transit Operations Insurance Program will allow the District to continue to maintain its risk transfer and risk retention program at optimum levels for the 2021-2022 policy period.
BUDGETARY/FISCAL IMPACT:
The current estimated increase for 2021-22 insurance program is a reasonable 6%. This year's budgetary impact will not exceed $12,704,000 if the Board authorizes binding the 2021-22 insurance program as recommended by staff at the current self-insured retentions (SIR) in the automobile and general liability coverage lines and elects to include terrorism coverage. If the Board chooses to maintain the current self-insured retentions but declines the terrorism coverage the total budgetary impact will not exceed $12,607,000.
BACKGROUND/RATIONALE:
The District's insurance program is renewed on a yearly basis. The District's current insurance program, except for property insurance, will expire at 12:01 a.m., April 26, 2021. Staff requests that the Board authorize the General Manager to bind the District's policies as recommended below.
In January 2021, staff began the process of renewing the District's Transit Operations Insurance Program with the District's insurance broker, Alliant Insurance Services. Due to the size and nature of the District's fleet, the District's loss history, industry-wide increases in bus accidents, limited financial capacity, and many carriers' decisions to withdraw fr...
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