2020 029 RESOLUTION - Laserfiche WebLink

Home Browse Search

RIA Wickert Office: (330) 929-8686 izoo Graham Road Fax: (330) 929-7762 Cuyahoga Falls, Ohio I N S U R A N C E www.wichert.com 44224 solutions from trusted Partners June 10, 2020 Village of Mayfield 6622 Wilson Mills Rd. Mayfield, Ohio 44143 Attn: Ron Wynne, Director of Finance RE: Insurance Renewal- Effective July 1, 2020 Dear Ron: We are pleased to deliver solid renewal terms that reflect the claims activity in recent years and the present marketplace and uncertainty. We have made some suggested changes to arrive at a 2% increase, significantly below what we are hearing from others. The 2% will also be tempered by Selective's auto credit and return premium under their experience program. It is probably more important now to understand the overall Insurance Marketplace at a higher level. Like so many other issues, many questions remain unanswered in the COVID-19 crisis. These events have created uncertainty around the Insurance Marketplace on multiple fronts. Depending on a client's program and individual risk characteristics, we are suggesting a "Shelter in Place Approach," for present renewals thru the duration of the crisis—whatever that means. After all, 2019 led into 2020 with an overall tightening of the Insurance Market place 1111110 that was leading to high single digit increases. That has slowed, at least temporarily. 11 I believe everyone knows the volatility of the markets, including the publicly traded Insurance Carriers has been unprecedented in March and April 2020. May and June have produced a modest return to "normalcy." The damage to carriers in general will take months if not years to understand. You may have read about coverage concerns around Business Interruption exposures. And while we have not had that discussion directly, your Selective Policies, as well as most of the ISO Based Insurance carrier forms picked up "Virus" exclusions back in 2006 from past issues. While it is our thinking that these exclusions will hold up, there are enough carriers without the exclusion to have drawn multiple suits across the Country to trigger these policies for Business Interruption. Beyond the actual "virus" exclusion, there generally must be direct damage to a property or nearby property to trigger the business interruption. In your case, Selective does not have a specific virus exclusion on the General Liability policy, however the exposure and triggering as an "occurrence" caused by the City is a stretch to think about. In addition, various State Legislatures, including our own, have introduced legislation to retroactively remove these exclusions. While this may sound really good to the City, especially for lost revenues at places like Recreation Centers as well as your local tax paying businesses, Public Entity Risk Management & Insurance