CCR2009017-Ins. Deductibles-attachment
CITY OF MUSKEGO
Reports and Presentations to Standing Committees of the Common Council (Finance, Public
Works and Public Utilities) And to Common Council
To: Common Council
From: Janice Moyer, Clerk-Treasurer
Subject: Recommendation to change the deductible for the Buildings and Contents, and
Contractors Equipment Insurance Policies with the State of Wisconsin Local
Government Property Insurance Fund
Date: February 13, 2009
Background Information:
The State of Wisconsin Local Government Property Insurance Fund insures the City’s buildings
and contents, and contractors equipment. The City has the option of changing deductibles to
save on premium. The Finance Committee reviewed information regarding deductible options,
claims history, and premium savings.
Contractors Equipment
Contractor’s equipment includes equipment that is not a licensed vehicle and other
miscellaneous equipment. The current deductible is $2,500. The Committee is recommending
a $5,000 deductible with an annual aggregate limit of $15,000. There have been no claims
submitted for contractors equipment 1/1/2004 to-date.
2009 Premium w/ $2,500 deductible $5,133
Premium w/ $5,000 deductible $1,934
Savings $3,199
Buildings & Contents
Building and Contents was the other policy reviewed for a change in deductible. The current
deductible is $2,500. The Committee is recommending a $15,000 deductible with an annual
aggregate limit of $45,000. From 1/1/2004 to-date, there were three claims paid for a total of
$11,000.
2009 Premium w/ $2,500 deductible $23,637
Premium w/ $15,000 deductible $13,249
Savings $10,388
Recommendation for Action by Committee and/or Council: Recommend to the Common
Council to increase the deductible to $5,000 for contractors equipment, and $15,000 for
buildings and contents.
Date of Committee Action: February 10, 2009
Planned Date of Council Action (if required): February 24, 2009
Total $ Needed: None
Fiscal Note(s):
$ Budgeted:
$ Unbudgeted:
Expenditure Account(s) number to be used: