Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: February 2, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule corporation, providing for and
authorizing the expenditure of funds by the City Manager and the Purchasing Agent for the purchase of
EMS Professional Liability insurance coverage for the City of Denton, through the City’s sole broker of
record, Lockton Companies, LLC; and providing an effective date (File 7622 – awarded to Admiral
Insurance Company for a three (3) year not-to-exceed amount of $72,926.43).
INFORMATION/BACKGROUND
The City of Denton purchases Emergency Medical Services (EMS) Professional Liability liability
protection for the operation of the City’s ambulance service and the activities of the City’s Emergency
Medical Technicians (EMT). This policy covers potential liability due to the provision of professional
ambulance services by the EMT’s and paramedics in the Fire Department. In addition to coverage for the
typical liability exposures associated with emergency medical care, this type of insurance also offers
coverage for sexual abuse and breach of provisions of the Health Insurance Portability and Accountability
Act (HIPAA). The City’s current policy will expire on February 11, 2021.
Given the complexities of this insurance product solicitation as described above, the City utilized the
services of our broker of record, Lockton, to assist with procuring this coverage.
State of the Market:
The Miscellaneous Medical industry aspect of ambulance services has become an extremely hard market
over the past year, resulting in renewals in the sphere of ambulance services going up significantly. The
incumbent, Admiral Insurance Company (Admiral), has presented a favorable renewal premium reflecting
only a 1% increase from last year.
The City’s broker of record, Lockton, worked to obtain two (2) quotes to present to the City – one with the
incumbent, Admiral, and the other with TDC Specialty Underwriters (TDCSU). Upon reviewing both
quotes, the TDCSU quote’s coverage limits are lower than those quoted by Admiral, including TDSCU’s
sexual abuse limits are only $100k/$300k while Admiral’s is $500k/$500k; TDSCU’s loading and
unloading are sub-limited to $100k/$300k, while Admiral’s is included in the policy limits of $500k/$500k.
Additionally, TDCSU removed evacuation and media coverage while the Admiral quote provides sub-
limits for these coverages.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
RECOMMENDATION
Award a contract with Admiral Insurance Company for EMS Professional Liability insurance coverage for
the City of Denton with a first-year cost of $22,032.51. A 10% increase year over year is included to
accommodate annual renewal increases for a three (3) year not-to-exceed amount of $72,926.43.
PRINCIPAL PLACE OF BUSINESS
Lockton Companies, LLC
Kansas City, MO
ESTIMATED SCHEDULE OF PROJECT
This is a three (3) year contract.
FISCAL INFORMATION
Funding for EMS Professional Liability insurance is budgeted in the Risk Retention Fund.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: EMS Professional Liability Quote
Exhibit 3: EMS Liability Comparison
Exhibit 4: Broker Recommendation Letter
Exhibit 5: LLC Members
Exhibit 6: Ordinance
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Deby Skawinski, 940-349-7810.
Legal point of contact: Marcella Lunn at 940-349-8333.