2026-2027
Insurance Renewal
Presented June 2026
City of
San Bernardino
(STATE OF THE MARKET INFORMATION HAS BEEN CONSOLIDATED FROM VARIOUS INDUSTRY SOURCES) 2 Contents
2025 Summary of Coverage
2026 Summary of Coverage
General Liability
Excess Workers’ Compensation
Cyber
Crime
2025 Summary of Coverage
Coverage Limits Deductible/SIR Premium
General Liability $25,000,000 $5,000,000 $2,300,085
Excess Workers’ Compensation Statutory $1,000,000 $909,248 Cyber $18,000,000 $100,000 $21,512
Crime $25,000,000 $2,500 $13,190
3 2026 Summary of Coverage
Coverage Limits Deductible/SIR Premium
General Liability $25,000,000 $5,000,000 Estimated
$2,661,000 to $2,919,000
Excess Workers’ Compensation Statutory $1,000,000 Estimated $795,000 to $818,000
Cyber $18,000,000 $100,000 Estimated
$25,900 to $39,800
Crime $25,000,000 $2,500 Estimated
$15,200 to $15,900
4 Insurance Market &
Financial Performance
6 General Liability
Policy Year: July 1, 2025- July 1, 2026
Coverage Provided
• Bodily injury
• Personal injury
• Property damage
• Public Officials Errors and Omissions
• Employment Practices Liability
• Automobile Liability
Excess Limit: $25,000,000
Self Insured Retention: $5,000,000
Casualty Market Drivers
7 General Liability & Excess Liability
Increase in Catastrophic Losses
• Sexual Misconduct
• Law Enforcement Liability
• Lifetime Care Costs
• Punitive Damage Awards
Organized Plaintiff Bar
• Litigation Financing
• Settlement pressure driven by Nuclear
Verdict Potential
Inflationary Pressures
• Social Inflation
Auto Liability
Cost of vehicles (inflation)
Workers Compensation
Cost to repair (technology)
Fatality Trends
Distractive Driving – Cell Phones
Robotaxis
Rising medical costs
Rapid rise of litigation costs
Use of Autonomous Driving
Increased fleet use of Electric Vehicles
Aging Workforce
Medical Cost Inflation
Cancer & PTSD Presumptions
Workplace Violence
Medical Service Delays
Out of State Exposure
Accident Survivability
Mental Health
Aging Infrastructure
Lack of market participation
Per-Household Costs of the U.S. Tort System
8 Tort burden
per household $2,000 - $2,750 $2,750 - $3,000 $3,000 - $3,750 $3,750 - $5,000 $5,000 + Alliant Insurance Services | Proprietary & Confidential Source: https://www.uschamber.com/lawsuits/hidden-costs-lawsuits-grow Valued 11/20/24
The map below is shaded according to tort costs
per household in each state. State-specific data
on the costs and compensation paid in the tort
system is available.
DC
Factors Driving
Up Values
9 Anchoring
• Arbitrary numbers
• Lump sum or per diem
• The more you ask for, the more
you get
• 1/3 of states limit anchoring
in some way
Reptile Theory
• Use juror anger to instill a sense
of fear or danger in jurors’ minds
so they lash out at the perceived
attackers (i.e. the Defendants)
• Use safety rules to divert the
jurors’ attention away from the
real legal standard
And…
• Law Firm Advertising
• The Plaintiff’s Bar
• Third Party Litigation Funding
• Legislative changes
• Increasingly negative
sentiment towards perceived
bad actors or institutions
10 Excess Workers’
Compensation
Policy Year: July 1, 2025- July 1, 2026
The EWC Program provides the following special
coverage features:
• Volunteers included (subject to adoption of
resolution by employer prior to injury)
• No terrorism exclusion
• PRISM staff will coordinate a claims audit within
the first year of participation and/or change of
TPAs, and every two years thereafter
• Claims resources and oversight on the excess
reportable claims by highly experienced Claims
Specialists
• Legislative advocacy on key workers’
compensation bills
Excess Limit: Statutory
Self Insured Retention: $1,000,000
Worker’s Compensation Trends/Outlook
Trends to Watch
11 Rising medical costs for catastrophic claims:
• Accident survivability
• Increased life expectancy for catastrophically injured workers • Higher costs for medical care technology
• 30% increase in claims incurred over $10M in last 3 years 01 Enhanced care with AI tools02
Inflation, tariffs and stress on our medical system03
The risk and needs of an aging workforce04
Legal claim costs05
Uptick in cumulative trauma claims06
Mental health claims07
Return to office08
12 Cyber
Policy Year: July 1, 2025- July 1, 2026
Coverage Provided
• Information Security and Privacy Liability
• Privacy Notification Costs
• Regulatory Defense and Penalties
• Website Media Content Liability
• Cyber Extortion
• First Party Data Protection
Limit: $18,000,000 aggregate limit of liability for each member (aggregate for all coverages combined) subject to the
$115,000,000 program aggregate limit of liability for all members combined
Self Insured Retention: $100,000
Current State of Cyber Claims
Ransomware
Payments
Payments made by victims to
ransomware groups totaled
$814M in 2024, down 35%
from the record-high of
$1.25B in 2023. (3) This is the
first time ransom payments
have declined since 2022.
(1) NetDiligence Cyber Claims Study 2024 Report
(2) Chainalysis cryptocurrency tracking data
(3) IBM Cost of a Data Breach 2024
(4) Duane Morris Class Action Review 2025
As measured by the number of claims over the past
5 years, the financial services sector is among the
top 5 most affected industries, which as a group
account for 52% of all claims and 59% of total
incident cost. (1)
Ransomware and Business Email Compromise are
the leading causes of loss. (1) The US has the highest average cost of a data breach of any country at
$9.36M. (3) However, the percentage of attack victims
paying a ransom has declined over the past five years
as business are relying more on restoration, backups
and remediation strategies.
Data breach class actions are at record levels. There
were 1,488 data breach class action filings in 2024,
up from 1,320 in 2023 and more than double the
amount in 2022. (4) The number of filings has risen by
1,265% over the last 6 years.
13 14
Crime
Policy Year: July 1, 2025- July 1, 2026
Coverage Provided:
Governmental Crime Policy on Discovery Form including:
• Employee theft including Faithful Performance of Duty (Per Loss Coverage)
• Forgery or alteration including Credit, Debit or Charge Card Forgery
• Inside premises - Theft of money and securities
• Inside premises - Robbery or safe burglary of other
property
• Computer fraud and funds transfer fraud
• Money orders and counterfeit paper currency
• Outside the premises
Limit: $25,000,000 each occurrence
Deductible per occurrence: $2,500
Contact Your
Alliant Service Team
Robert Lowe
First Vice President
[email protected]
Kristen DesCombes
Associate Producer
[email protected]