Agenda 09/29/2009 Item #16E 6
Agenda Item No. 16E6
September 29, 2009
Page 1 of 5
EXECUTIVE SUMMARY
Recommendation to approve the purchase of Liability, Automobile, Workers'
Compensation, Flood, Aircraft, and other insurance and related services for FY 2010 in
the amount of $1,826,930, a reduction of $45,858 below the FY 2009 actual cost.
OBJECTIVE: To gain approval from the Board to purchase Liability, Automobile, Workers'
Compensation, Flood, Aircraft, and other insurance and related services for FY 2010 in the amount of
$1,826,930.
CONSIDERATIONS: Pursuant to Florida Statutes 768.28 and 440, the Risk Management Department
administers two risk management funds (Fund 516 and Fund 518) to finance its Property, Casualty
and Workers' Compensation insurance programs. These programs consist of retained losses; first
dollar, primary and excess insurance premiums; claims administration servicas~ brokerage services;
and other ancillary services necessary to administer the program. The various lines of insurance
covered under these programs include Property; Flood; Equipment Breakdown; General Liability;
Public Officials Liability; Crime and Employee Dishonesty; Automobile Liability; Automobile Physical
Damage; limited Uninsured Motorist; Boiler and Machinery; Aircraft Hull and Liability; Airport Liability;
Pollution Liability; Contingent Law Enforcement; Medical Malpractice; Statutory Accidental Death; and
Workers' Compensation.
The program consists of a primary coverage layer; excess layers; and stand alone policies to cover
the various exposures of the County. The primary layer of coverage utilizes the Princeton Excess All
Lines Aggregate (ALA) program to provide General Liability, Public Officials Liability, Automobile
Liability, Crime, and Workers' Compensation insurance. The County retains the first $100,000 per
c1aimant/$200,000 per occurrence for each claim presented with the exception of Workers'
Compensation which has a $500,000 per claim retention. Claims are administered through Johns
Eastern Company as an approved claims administration company for the program.
To assure sufficient coverage limits, the county purchases excess coverage to protect against large
losses; to cover a cause of action not limited by a sovereign immunity cap (such as employment
practices); or to cover a claims bill pursuant to F.S. 768.28. In addition to the programs already
mentioned, individual policies are purchased for Equipment Breakdown (Boiler and Machinery),
Aircraft, Airport Liability, Pollution Liability, Medical Malpractice, Contingent Law Enforcement, and
Statutory Accidental Death.
An extensive review is performed periodically to assure that the County's insurance program is both
comprehensive and competitive. For 2010, the County's broker, IRMS requested quotations from the
Florida Association of Counties Trust (FACT), the Preferred Governmental Insurance Trust
(PGIT)/Star Insurance Company and Genesis Insurance Company to assure that the program remains
competitive. Genesis offered a premium indication higher than the renewal offered by Princeton
Excess and neither FACT nor PGIT/Star Insurance Company chose to submit proposals. PGIT/STAR
Insurance Company stated that they were not competitive with the current program and FACT did not
submit a proposal.
The significant highlights of the FY 09 renewal are as follows.
D Total Premiums and Fixed Costs- Total premiums and fixed costs decreased 2.45% or $45,858
on an annual basis.
Agenda Item No. 16E6
September 29, 2009
Page 2 of 5
D Aviation Policy - Staff reviewed the Aviation Policy and is recommending that coverage on the
hull is raised from $4,500,000 to $5,500,000 to assure appropriate replacement value.
D The Pollution carrier has offered a discount and rate guarantee for the purchase and payment
of a two year policy. This equates to a price reduction of $27.31 % or $28,660 per year for a
total savings of $57,320 over the two year term.
D All other terms and conditions remain the same.
The property insurance program renews on April 1 , 2010 and is not included in this recommendation.
A complete renewal summary sheet is attached as part of this submission.
FISCAL IMPACT: Total premiums and fixed costs are $1,826,930, a reduction of $45,858. Funds
have been budgeted within Funds 516, Property and Casualty Insurance and Fund 518, Workers'
Compensation Insurance for the purchase of coverage as outlined in the executive summary and
renewal summary sheet.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
item.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office and is
legally sufficient for Board action. - CMG
RECOMMENDATION: It is recommended that the Board approves the following:
1) The purchase of the Princeton Excess ALA Program and additional excess insurance coverage as
outlined in the executive summary and casualty renewal summary sheet.
2) The purchase of Aircraft, Airport Liability, Equipment Breakdown, Crime, Pollution Liability,
Statutory Accidental Death, and Contingent Law Enforcement Liability coverage as outlined in the
Executive Summary and Casualty Renewal Summary Sheet effective October 1, 2009.
3) The rejection of Uninsured Motorist Insurance with the exception of scheduled take home vehicles,
authorizing the Risk Management Director to execute the necessary rejection forms.
4) The rejection of a Terrorism Endorsement on all coverage except property, authorizing the Risk
Management Director to execute any necessary forms. Terrorism coverage is purchased as part
of the Property Insurance renewal.
5) Authorize the Risk Management Director to complete the applications or other documents
necessary to bind coverage and services effective October 1, 2009.
PREPARED BY: Jeffrey A. Walker, CPCU, ARM, Director, Risk Management Department
Page 1 of 1
Agenda Item No. 16E6
September 29, 2009
Page 3 of 5
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number: 16E6
Item Summary: Recommendation to approve the purchase of Liability, Automobile, Workers Compensation,
Flood, Aircraft, and other insurance and related services for FY 2010 in the amount of
$1,826,930, a reduction of $45,858 below the FY 2009 actual cost. (Jeff Walker, Risk
Management Director)
Meeting Date: 9/29/2009 9:00:00 AM
Prepared By
Jeffrey A. Walker, CPCU, Risk Management Director Date
ARM
Administrative Services Risk Management 9/14/20091:16:01 PM
Approved By
Jeffrey A. Walker, CPCU, Risk Management Director Date
ARM
Administrative Services Risk Management- 9/14/20091:16 PM
Approved By
Colleen Greene Assistant County Attorner Date
County Attorney County Attorney Office 9/17/200910:19 AM
Approved By
Jeff Klatzkow County Attorney Date
County Attorney County Attorney Office 9/17/20091:32 PM
Approved By
Len Golden Price Administrative Services Administrator Date
Administrative Services Administrative Services Admin. 9/17/20095:08 PM
Approved By
OMB Coordinator OMS Coordinator Date
County Manager's Office Office of Management & Budget 9/18/20098:06 AM
Approved By
Laura Davisson Management & Budget Analyst Date
County Manager's Office Office of Management & Budget 9/18/20098:57 AM
Approved By
Leo E. Ochs, Jr. Deputy County Manager Date
Board of County
Com missioners County Manager's Office 9/18/20095:49 PM
file://C:\Agendatest\export\135-September 29, 2009\16. CONSENT AGENDA\16E. ADMI... 9/23/2009
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