23,582

Source: PDF p. 268 · raw: 268

Breadcrumb: 2 B&F › BnF-DPs › Package Details › 23,582

23,582 - B&F-Risk-5%cut-Reduce Excess Earthquake Policy Limits Service Area Budget & Finance DCA Jonas Biery Bureau Name Office of the Deputy City Administrator of Budget & Finance Director DCA of Budget & Finance Funding Type Name Reduction Status: Recommended Package Desc Expense Recommended Total This package reduces Risk Management Insurance & Claims IA's with property owning bureaus by Personnel $0 $270,000. This is created by a slight reduction in excess earthquake policy limits, creating policy $0 premium savings. The reduction is from excess limits of $25M to $10M. Such excess limits sit atop the primary $50M in earthquake. Thus, a reduction from an overall earthquake limit of $75M to Revenue Recommended Total $60M. Interagency Revenue $0 Service Impacts $0 Overall earthquake limits purchased are reduced, however the city still maintains reimbursement protection from FEMA and carries significant limits at the reduced amount of $60M. In the event of Expense Recommended Total an earthquake, recovery of amounts beyond the city policy limits may take longer through a claim under FEMA, however FEMA also allows additional areas of recovery which direct insurance does External Materials and Services ($269,821) not. Outcomes would be measured by timing and outcome of any claim arising, and without such ($269,821) premium reduction option, Risk Management would lose 2 at least 2 FTE in claims adjusting staff. Current claim loads for Workers Compensation and Liability claim are extremely high, having risen Revenue Recommended Total consistently over the past 3 years. Staff reduction would pose a greater financial threat to the city than premium savings. Interagency Revenue ($269,821) Equity Impacts ($269,821) N/A

Parent: Package Details · PDF: p. 268