Liability and Property Insurance Renewal

City Council Agenda Item Report FROM: Nicole Bredeweg MEETING DATE: June 18, 2025 SUBJECT: 2025-2026 Property and Liability Insurance Renewal DESCRIPTION: The City’s annual renewal of its property and liability insurance through the Michigan Municipal League Liability and Property Pool is presented for Council approval. This year’s renewal reflects several modest adjustments: •

Property values increased by approximately 3%, from $4,399,992 in 2024 to $4,561,230 in 2025, due to standard replacement cost adjustments built into the rating system.

The Cyber Liability deductible increased from $2,500 to $5,000. All other deductibles, including the general Property deductible, remain unchanged at $500.

The total annual premium is $36,775 ($34,838 in 2024 - $1,937 increased cost), with a post-renewal dividend of approximately $2,803 ($2,668 in 2024 - $135 increased dividend) to be returned to the City following payment. Jim Newman, our representative from MML, will be present via Zoom to answer any questions Council may have.

BUDGET ACTION REQUIRED: The premium is built into the FY2025-2026 budget under Insurance expenditures. No amendment is needed. COMMITTEE/COMMISSION REVIEW: Not applicable. LEGAL REVIEW: Not applicable, plus legal will be on hand for any questions. SAMPLE MOTION: Motion to approve the renewal of the City’s property and liability insurance policy with the Michigan Municipal League Liability and Property Pool for the 2025-2026 fiscal year, as presented.

Proposal for the

City of Saugatuck .

Presented By:

James Newman, LUTCF MML Liability & Property Pool (517) 243-5865 June 16, 2025

Table of Contents EXECUTIVE OVERVIEW

OUR MISSION

INTRODUCTION

WHAT YOU CAN EXPECT OF US

YOUR POOL INSURES MORE THAN . . .

COST AND COVERAGE SUMMARY

YOUR TEAM OF EXPERTS

BENEFITS OF POOLING WITH THE MML

CITY OF SAUGATUCK HAS . . .

INCREASED LIABILITY LIMITS

HIGHLIGHTS OF COVERAGES PROVIDED

WHO IS INSURED? GENERAL LIABILITY GENERAL LIABILITY EXCLUSIONS . . . PUBLIC OFFICIALS LIABILITY COVERAGE PUBLIC OFFICIALS LIABILITY EXCLUSIONS PERSONAL INJURY & ADVERTISING / BROADCASTERS LIABILITY COVERAGE POLICE PROFESSIONAL LIABILITY COVERAGE PROPERTY COVERAGE PROPERTY EXCLUSIONS COMPREHENSIVE CRIME COVERAGE AUTOMOBILE COVERAGE HIGHLIGHTS WHAT IS COVERED? AUTO COVERAGES PROVIDED

11 11 11 12 12 12 12 13 13 14 14 14 14

POOL RISK MANAGEMENT SERVICES

MEMBER EDUCATION

ONLINE SERVICES

MEMBERSHIP RESPONSIBILITIES

This proposal is intended to be only a summary of coverages and services. For specific details on coverage terms and conditions, please refer to the Michigan Municipal League Liability and Property Pool coverage document.

Executive Overview The Michigan Municipal League Liability and Property Pool has been a stable source of comprehensive municipal insurance and risk management services since 1982. It is financially secure and positioned for long-term stability. The Pool staff is made up of municipal insurance experts. Municipal risk management is our only business, and we’re proud of it! The Pool provides insurance coverage designed specifically for Michigan municipal exposures, combined with a package of loss control programs, claims administration, legal defense and membership services that you won’t find anywhere else in Michigan. This quotation is based on the limits of coverage requested by the City of Saugatuck. Higher limits may be available, subject to underwriting review by Pool Management. Please submit requests for higher limits in writing to your Account Executive. Your request will be considered by Pool Management. The insurance and related services described more fully in this proposal are being offered to the City of Saugatuck for an annual premium of $36,775. (In addition, the MML Liability & Property Pool Board of Trustees voted to return another post-renewal dividend for Members renewing in 2025. The city’s portion of the dividend return is estimated to be $2,803.The city will receive this dividend in the month following payment of your 2025 renewal premium.) We encourage you to compare the Pool with our competition. Compare us based on price, coverage, service, financial security, experience and commitment to municipal risk management. When you do, the advantages of Pool membership become clear. Thank you for being a Pool member. We look forward to servicing your risk management program for many years to come.

Our Mission

To be a long-term, stable, cost-effective risk management alternative for members of the Michigan Municipal League Liability and Property Pool.

Introduction What You Can Expect Of Us

 A commitment to learn, understand and respond to your insurance needs;  Continuous planning and innovation in product development and service delivery;  Products that meet your needs in terms of price, coverage and service;  Prompt, accurate, and courteous response to your questions, problems and claims; and  Knowledgeable and professional staff serving your needs consistently and with integrity. Your Pool Insures More Than . . .

 433 Public Entity Members

 195 Water Utilities

 139 Fire Departments

 218 Sewer Utilities

 170 Law Enforcement Agencies

 24 Municipal Marinas

 2,195 Police Officers

 $5 Billion of Property Values

 5,772 Miles of Streets/Roads

 206 Water Service Operations

 6,950 Vehicles

 17 Dams

 16 Electric Utilities

The retention increased from $2,500 to $5,000.

Your Team of Experts

James Newman, LUTCF Municipal Account Executive

Michael J. Forster Pool Administrator

(517) 243-5865

(734) 669-6340

Ellen Skender is retiring and 1-1-22, the new CSR is Katelyn Petracca

Katelyn Petracca 248-204-6160 Alpha Split: (Le – Z)

Joan Opett 248-204-8579 (A – La)

Customer Service Representatives

Tracy Mattiello Claims Manager (248) 204-8094

Rod Pearson Loss Control Manager (248) 204-8036

Benefits of Pooling with the MML 9

 Proven long-term availability and stability  Broad coverage document written specifically for Michigan municipalities  Services tailored to unique needs of Michigan municipalities  Member assets controlled by an elected Board of municipal officials  Equitable rating based on Pool experience in Michigan  Aggressive defense strategy – positive impact on case law  Professional, dedicated, and experienced local management, oversight and service  Decisions made and problems resolved by a group of your peers  Investment income and underwriting surplus used to benefit members  Lower expenses through tax-exempt and non-profit status  Special loss avoidance training sessions including:  Safety aspects of emergency vehicle operations  Accident investigation for supervisors  Confined spaces training

The advantages of pooling can be summarized by: Service + Control + Value

City of Saugatuck Has . . .

 $820,958. Annual Payroll  $4,561,230. of total values for real and personal property  11 Vehicles

Increased Liability Limits We cannot guarantee the adequacy of any limit of liability. Due to the following factors, it may be prudent to consider higher limits:

 Increased jury awards in your jurisdiction  Increased litigation trends  Protection of tax base against judgments in excess of your policy limits If you are interested in increasing your liability limits, please contact your Account Executive.

Highlights of Coverages Provided Who Is Insured?

The Pool member entity, elected and appointed officials, employees and authorized volunteers, and any person officially appointed to a Board or Commission

General Liability

In addition to standard liability coverages (bodily injury, property damage, products and completed operations) the Pool provides coverages that municipalities need on an occurrence basis with no aggregate liability limits:

 Liability resulting from mutual aid agreements  Premises medical payments  Fire legal liability for real property  Host liquor liability  Ambulance and EMT malpractice  Watercraft liability, owned less than 26’ and non-owned less than 50’  Special events excluding •Fireworks (unless endorsed)

•Liquor Liability

• Mechanical Amusement Rides

Fireworks Coverage Options: (Fireworks application must be completed before coverage is endorsed) 1. The MML Liability & Property Pool is primary (the Member is not added as an additional insured on a pyrotechnician’s coverage): Annual Aggregate Sublimit $500,000 $1,000,000 2.

Additional Premium Yes Yes

The MML Liability & Property Pool is excess (the Member is added as an additional insured on a pyrotechnician’s coverage): NO ADDITIONAL PREMIUM

 Athletic participation liability  Employee benefit liability  Cemetery operations coverage  Marina Operators coverage available

 Up to $10 million in liability limits available  Pollution coverage for Hazardous Response Teams

 Cyber Liability and Data Breach Response

Coverage – as described on MMLCYD (09/17)

General Liability Exclusions . . .

The following is a partial list of general liability coverage exclusions. Consult the coverage document for the complete listing:

 Pollution (except for Hazmat operations). Contractual Liability  Nuclear energy / nuclear material hazards Failure to supply utilities  Expected or intended injury  Electromagnetic radiation  Breach of contract Medical malpractice for doctors and physicians  Failure of dams (unless endorsed) Criminal activity--Intentional acts w/knowledge of wrongdoing  Backup of Sewers and Drains (exception -- $100,000 Annual Aggregate Sublimit for Sewer and Drain Liability)  Aircraft Liability – (Unless Endorsed -- Limited Coverage for Unmanned Aircraft—MML236) 12

Cyber Liability and Data Breach Response Coverage

 Information Security and Privacy Liability  Privacy Breach Response Services  Regulatory Defense and Penalties  Website Media Content Liability

 PCI Fines, Expenses and Costs  Cyber Extortion  First Party Data Protection  First Party Business Interruption

Public Officials Liability Coverage

“Wrongful Acts”, including intentional acts, defined as any actual or alleged error, misstatement, act of omission, neglect or breach of duty including:

 Neglect of duty  Zoning defense and land use litigation  Malfeasance  Violation of civil rights

 Discrimination  Employment practices  Misfeasance  Cable TV broadcasting

Public Officials Liability Exclusions

The following is a partial list of public officials’ liability coverage exclusions. Consult the coverage document for the complete listing:

 Pollution and Nuclear Energy  Fraud, dishonesty, intentional and criminal acts  Failure to purchase coverage or adequate coverage  Return of governmental grants or subsidies  Intentional acts with knowledge of wrongdoing

 Eminent domain / takings  Illegal profit  Labor union actions  ERISA violations  Backup of Sewers and Drains

Personal Injury & Advertising / Broadcasters Liability Coverage

 Mental anguish and stress  Libel, slander or defamation of character; violation of an individual’s right of privacy  Proactive services for non-monetary damage claims Police Professional Liability Coverage

Police Professional Liability coverage is contained within the General Liability and Public Official Liability Coverage Parts

 Discrimination  Assault or battery  Violation of civil rights  Improper service of suit  Jail operations  Coverage assumes officers act with intent  False arrest, detention or imprisonment, or malicious prosecution  Wrongful entry or eviction or other invasion of the right of private occupancy 12

Property Coverage

In addition to covering buildings, contents and personal property, the Pool provides:

 Blanket coverage -- All member-owned property insured (unless specifically excluded)  Coverage based on ownership rather than on a “schedule on file” avoids coverage gaps due to errors or oversight

 Property of others in custody of the Member for which the Member has an obligation to provide coverage

 Boiler & Machinery coverage, including Boiler certification inspections  Replacement Cost or Actual Cash Value available  Fungal Pathogens (Mold) Limited Coverage  Demolition/increased cost of construction  No coinsurance  Property in the open  Valuable papers  Extra expense  Loss of Rents  Expediting expense

Property Exclusions

The following is a partial list of property coverage exclusions. Consult the coverage document for the complete listing:

 Nuclear reaction/ contamination

 Failure to supply utilities  Transmission Lines and Poles  Dishonest acts  Acts of Terrorism excess of Pool’s

 War  Cyber Risk

Aggregate Sublimit -- MMLC TR (9/1/10)

 Fungal Pathogens (Mold) excess of

 Wear and tear  Computer failures/ viruses

sub-limit

Only one deductible applies to claims involving two or more property coverages.

Comprehensive Crime Coverage  Employee Dishonesty/ Faithful Performance of Duty coverage provided on a blanket basis  Loss Inside the Premises  Loss Outside the Premises  Money Orders/ Counterfeit Currency  Depositors Forgery  Position Fidelity Bonds  Computer Fraud  Funds Transfer Fraud

Automobile Coverage Highlights What Is Covered?

Coverage is afforded while operating land motor vehicles, trailers or semi-trailers designed for travel on public roads.

Auto Coverages Provided

 Michigan No-Fault Coverage, includes mini-tort coverage for no extra charge  Excess protection for use of personal automobile for municipal business  Uninsured motorist for municipally owned vehicles  Underinsured motorists  Non-owned and hired auto  Comprehensive - actual cash value basis  Collision - actual cash value basis  Volunteer firefighter auto accident liability coverage  Agreed value coverage for emergency vehicles is available  Fire or Rescue Vehicle Rental Reimbursement Coverage

Pool Risk Management Services 

Review and service of all municipal insurance matters

Public entity experts address various liability issues

Aggressive, member-oriented defense strategy

Former police officials address law enforcement risks

 Physical inspection by municipal loss control consultants

 Law enforcement risk control programs (LEAF and LERC)

 Property appraisal services available

Online Services www.mml.org (click on the Insurance button) – offers Pool members an outstanding

resource for municipal risk management information and self-help tools in one attractive, simple-to-navigate location. File a claim on line. Download your renewal application. Request a loss control service visit. E-mail us a question. Other services available online:

Online Forms (including Sewer Backup Sample Documents)

Risk Resources:

 Risk Control Solutions  Safety & Health Manual  Risk Management is Good Management Program  Law Enforcement Newsletters  Access to Safetysurance website -- http://www.safetysurance.com/ 

MML Pool Audited Financial Statements

Intergovernmental Contract

Board of Directors, Pool Administrator and Staff Profiles and Contact Information

Membership Responsibilities Membership in the Michigan Municipal League Liability and Property Pool provides numerous benefits. Likewise, individual members have certain responsibilities to the other members, which are detailed in the Intergovernmental Contract. The following is a summary of the membership responsibilities. Please refer to the Intergovernmental Contract, Articles 5 and 6, for more information.

If a Member intends to leave the Pool, the Member must send a written notice to the Pool at least 60 days prior to its next renewal date.

A Member must pay its premium when due. The Pool must give each member 20 days written notice of intent to terminate membership for nonpayment of premium. Payment of premium before the 20 days notice is effective will entitle the Member to reinstatement.

Members must maintain membership or associate membership status in the Michigan Municipal League.

A Member will allow attorneys employed by the Pool to represent the Member in defense of any claim made against the Member within the scope of coverage provided by the Pool. A Member will cooperate with the assigned attorneys, claims adjusters, service company or other agents of the Pool relating to the defense of claims for which the Pool is providing coverage.

A Member will follow loss reduction and prevention measures established by the Pool.

A Member will report to the Pool as promptly as possible all incidents that the Member reasonably believes may result in a claim against the Member.