HomeMy WebLinkAboutItem 07 - Railroad LiabiltyMEMOTO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: OCTOBER 6, 2020
SUBJECT: APPROVAL TO RENEW ANNUAL POLICIES FOR RAILROAD LIABILITY
AND PHYSICAL DAMAGE INSURANCE
RECOMMENDATION: City Council to consider the renewal of annual policies with Westchester
Insurance and RLI Insurance companies for railroad liability and physical
damage.
FUNDING SOURCE: Funds are available in the Convention and Visitors Bureau Fund in the
estimated amount of $194,300.
BACKGROUND: The City of Grapevine is fully -insured for railroad liability and physical
damage insurance.
Westchester Insurance will provide a coverage limit for liability of
$25,000,000 which is the City's required coverage limit per DART
contract. RLI will provide $2,000,000 in physical damage insurance
coverage for the train cars. These are one-year policies.
The City's consultant Hub International Insurance Services (HUB) secured
pricing for the renewal of these policies. Westchester Insurance and RLI
Insurance Companies are the only carriers that provided quotes.
Other carriers were contacted and their responses were as follows: Aspen
declined; XL has a large capacity in other entities involved so they have
declined; Markel only offers railroad first party property coverage, not
liability; Liberty cannot offer full $25M limits; and Amtrust does not offer
railroad liability.
Staff recommends approval.