title
Authorization to purchase insurance coverage for CHA's Property Managers' Insurance Program and Commercial Property.
presenter
Presenter: Dominick Maniscalco, Deputy Chief Human Resources
end
Recommendation
The Interim Chief Executive Officer ("CEO") of the Chicago Housing Authority ("CHA") recommends that the CHA Board of Commissioners ("Board") authorize the purchase of insurance coverage for CHA's Property Managers' Insurance Program and Commercial Property for an aggregate not-to-exceed amount $8,067,630. The coverages being purchased are for the one-year policy term of May 31, 2025 through May 30, 2026, under a fixed rate contract compromised of the following: (1) A CHA self-insurance program with Zurich Insurance Gorup as the fronting insurer for a premium amount of $154,000, (2) First Excess Liability coverage written through General Star Indemnity Company for a premium amount of $1,440,501, (3) Second Excess Liability written as a 50/50 quota share through Allied World Assurance Company for a premium amount of $626,971 and (4) Superior Specialty for a premium amount of $627,971; and (5) Commercial Property Insurance written through Travelers Insurance Company for a premium amount of $5,218,187.
No additional collateral has been required from Zurich Insurance Group. The total collateral requirement remains at $1,590,000, matching the expiring terms.
The requested action complies in all material respects with all applicable federal, state, and local laws, and CHA policies. CHA staff has completed all necessary due diligence to support the submission of this initiative.
Funding
MTW Funds
Background
The Property Mangers' Insurance Program ("PMIP") was created in 1999 as the solution to provide liability protection for the CHA and its property management firms, during a period when no insurer would cover the CHA's extreme risks. The PMIP is defined as an "Owner-Controlled Insurance Program" or OCIP. By purchasing insurance to cover all liabilities a...
Click here for full text