Eastern Municipal Water District

Action/Info Item

Approve Glatfelter Public Practice Insurance Renewals of General and Excess Liability, and Property Insurance and Excess Worker's Compensation Coverage with Goodwin Insurance Agency, Inc. Acting as the District's Insurance Broker for Fiscal Year 2019-20 (Total Premium and Broker’s Fee $1,329,865)


Department:Safety, Risk & Emergency ManagementSponsors:
Category:Action/Info ItemMeeting Workflows:Board Admin Committee Workflow


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The District’s current insurance is provided through Glatfelter Public Practice Insurance Group (Glatfelter). Glatfelter was competitively selected in 2015 for a five-year contract to provide the District with its required insurance coverages. Each year, Glatfelter proposes a package of insurance coverages that best meet the District’s needs and is bundled in a manner designed to minimize premium costs and provide effective administration.


To ensure that the District receives the best insurance package available, each year the District will also utilize a separate insurance broker, Goodwin Insurance Agency (Goodwin), to independently solicit proposals from various other insurance companies to use as a comparison to the comprehensive package offered by Glatfelter.


In January 2019, Goodwin solicited proposals for required District insurance coverage from six other carriers including: Employers Mutual Companies, Liberty Mutual, Chubb and Company, Fireman’s Fund, Travelers Insurance, and American Alternative Insurance Corporation.


Based on Goodwin’s assessment of the District’s insurance requirements and the available costs of the proposals received, Glatfelter’s bundled package for the upcoming year is considered to be the most cost effective option for the District. The table below reflects the proposed insurance premiums relative to the District’s budget for Fiscal Year 2019-20.


Insurance Type and Coverage



FY 2018-19


FY 2019-20



FY 2019-20


Liability Package

-          General Liability

-          Public Officials & Management

-          Travel Accident





Commercial Auto Liability

-          $15,000 Deductible





Excess Liability

-          $1M Self-Insured Retention





Additional Excess Liability





Property Package

-          Inland Marine

-          Crime

-          Flood ($1M)

-          No earthquake coverage





Equipment Breakdown

-          $15,000 Deductible


Included In Property

Included In Property


Excess Workers’ Compensation

-          $1,000,000 Self-Insured Retention















General Liability


Excess of SIR


Auto Liability


Over primary coverage of $1 Million


Public Officials


Excess of SIR


The District’s reputation with claims management has allowed the District to continue to recognize a lower rate structure. The Excess Workers’ Compensation premiums have increased five percent due to market conditions.  The District’s effective management of workers’ compensation claims continues to control these premiums, keeping them below industry norms.


The total premium cost for all District coverage is $1,329,865, which is $66,480 under the Fiscal Year 2019-20 budgeted premiums. The insurance premiums are under budget due to more favorable market conditions and package discounts.  Property insurance limits have been increased to $704,549,309.  This is higher than last year’s total insurable value of $677,355,109. The District has scheduled all properties and as a result will share a total aggregate limit of $704,549,309 for any loss at a scheduled facility, excluding earthquake.   Goodwin Insurance Agency will be paid brokers’ fees of approximately $85,100, and is included in the total premium cost noted above.


The District manages the Self-Insured Reserve (SIR) through a Self-Insured Reserve Fund (SIRF).  The District budgets for tort liability claims and pays claims through the budgeted funds. In years when the claims are less than the budgeted amount, those remaining funds are transferred to the Districts SIRF at the end of the Fiscal Year. In years when the claims exceed the budgeted amount, funds are utilized from the SIRF to pay claims. 


Both Glatfelter and Goodwin are under a five-year contracts that are due to expire next year. In 2020, District will resolicit its insurance contract requirements for both broker services as well as insurance protection.


Financial/Strat Plan/Enviro


Funding for this item is provided for in the Budget for Fiscal Year 2019-20.


Ensure financial stability and demonstrate responsible stewardship of public funds.



This item is not a project as defined in the California Environmental Quality Act Code of Regulations, Title 14, Chapter 3, Section 15378.


Approve and authorize the District’s insurance coverage, with premiums totaling $1,329,865, to be paid out of the Fiscal Year 2019-20 Operating Budget:


1.              General Liability, Commercial Auto, Excess Liability, Additional Excess Liability, Property, and Equipment Breakdown Insurance Packages from Glatfelter Public Practice with premiums in the amount of $1,137,200; and


2.              Excess Workers’ Compensation Insurance from Safety National Casualty Corporation with premiums in the amount of $192,665.


Meeting History

Jun 6, 2019 4:00 PM  Board Administrative Committee Regular Meeting
draft Draft
Jun 19, 2019 9:00 AM  Board of Directors Regular Meeting
draft Draft
MOVER:David J. Slawson, Board Member
SECONDER:Stephen J. Corona, Board Member
YES:Ronald W. Sullivan, Philip E. Paule, Stephen J. Corona, Randy A. Record, David J. Slawson