Agenda 09/14/2021 Item #16E 6 (Purchase Excess workers' comp insurance for FY2022)09/14/2021
EXECUTIVE SUMMARY
Recommendation to approve the purchase of Excess Workers’ Compensation Insurance for FY
2022 with Arch Insurance Company in the estimated annual amount of $178,929.
OBJECTIVE: To protect the County against financial loss arising from Workers’ Compensation related
claims and lawsuits and to comply with the statutory requirements of Florida Statutes Chapter 440.
CONSIDERATIONS: Pursuant to Florida Statutes Chapter 440, the Risk Management Division
administers a self-funded Workers’ Compensation program. The self-insured retention is $600,000 per
claim. The County purchases excess coverage to protect the program against catastrophic losses. The
coverage limits comport to statutory requirements. Claims are administered by Johns Eastern Co mpany.
Assured Partners of Florida is the County’s contracted broker of record for the program. The current
carrier is Arch Insurance Company with coverage expiring September 30, 2021.
Proposals were sought from five carriers. Two carriers provided quotes. The responses were as follows:
· Arch Insurance Company- Proposed with no change in terms- proposed a premium of 169,550.
. Midwest Employers Casualty Company - Proposed a premium of $185,153.
· Safety National - Declined to quote as they cannot be competitive.
· Star - Declined to quote as they are not writing public entity exposures currently.
· Travelers - Declined to quote as the current Third-Party Administrator is not approved.
Staff recommends the placement of coverage with Arch Insurance Company as follows:
FY 21 FY 22 Change
Estimated Ratable Payroll $153,308,009 $155,590,409 1.5%
Rate per $100 of Payroll .1095 .1150 5.0%
Premium $169,550 $178,929 5.5%
The significant highlights of the FY 2022 renewal are as follows.
· Estimated ratable payroll increased 1.5%
· The rate per $100 or payroll increased 5.0%
. Overall premium compared to FY 21 is estimated to increase $9,379
Arch Insurance Company carries a Best’s financial rating of “A+, Superior”. No program changes are
recommended. The commencement date of coverage is October 1, 2021.
FISCAL IMPACT: The estimated annual premium is $178,929. Sufficient funds have been budgeted
within Fund 518, Workers’ Compensation Insurance to purchase coverage.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
item.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal
issues and requires majority vote for approval. -JAK
RECOMMENDATION: To approve the purchase of Workers’ Compensation coverage as outlined in
the Executive Summary and authorize the County Manager or designee to complete the applications or
16.E.6
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09/14/2021
other documents necessary to bind coverage effective October 1, 2021.
Prepared by: Jeffrey A. Walker, CPCU, ARM, Division Director, Risk Management Division
ATTACHMENT(S)
1. Collier Excess WC Exhibit 8-10-21 (PDF)
16.E.6
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09/14/2021
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.6
Doc ID: 17753
Item Summary: Recommendation to approve the purchase of Excess Workers’ Compensation
Insurance for FY 2022 with Arch Insurance Company in the estimated annual amount of $178,929.
Meeting Date: 09/14/2021
Prepared by:
Title: Division Director - Risk Management – Risk Management
Name: Jeff Walker
08/11/2021 10:13 AM
Submitted by:
Title: Division Director - Risk Management – Risk Management
Name: Jeff Walker
08/11/2021 10:13 AM
Approved By:
Review:
Agenda Clerk Preview Michael Cox Agenda Clerk Preview Completed 08/18/2021 7:58 AM
Risk Management Jeff Walker Director Review Completed 09/07/2021 7:28 AM
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 09/07/2021 8:21 AM
Office of Management and Budget Laura Wells Additional Reviewer Completed 09/07/2021 9:04 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 09/07/2021 4:18 PM
County Manager's Office Sean Callahan Level 4 County Manager Review Completed 09/07/2021 4:33 PM
Board of County Commissioners Geoffrey Willig Meeting Pending 09/14/2021 9:00 AM
16.E.6
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COLLIER COUNTY GOVERNMENT
EXCESS WORKERS' COMPENSATION RENEWAL QUOTES
8/9/2021
Current Program
with Updated
Payrolls
Option 1 Option 2 Option 3 Option 4 Option 5 Option 6
Estimated Annual
Total Payroll $155,590,409 $155,590,409 $155,590,409 $155,590,409 $155,590,409 $155,590,409 $155,590,409
Policy Term 1 year 1 year 1 year 1 year 1 year 1 year 1 year
Specific Retention $600,000 $600,000 $600,000 $750,000 $750,000 $1,000,000 $1,000,000
Specific Limit W.C. Statutory Statutory Statutory Statutory Statutory Statutory Statutory
E.L. $3,000,000 $3,000,000 $2,000,000 $3,000,000 $2,000,000 $3,000,000 $2,000,000
Rate (per $100 of
Payroll) 0.1095 0.1150 0.1190 0.0986 0.1061 0.0899 0.0899
Annual Policy
Premium 170,371 178,929 185,153 153,412 165,081 139,876 139,876
Minimum Policy
Premium 153,334 161,036 166,637 138,071 148,573 125,888 125,888
Carrier
Arch Insurance
Company
Arch Insurance
Company
Midwest Employers
Casualty Company
Arch Insurance
Company
Midwest Employers
Casualty Company
Arch Insurance
Company
Midwest Employers
Casualty Company
Carrier's A.M. Best
Rating A+, XV A+, XV A+, XV A+, XV A+, XV A+, XV A+, XV
Current policy included a payroll of $153,308,009 which generated a premium of $167,872.
16.E.6.a
Packet Pg. 2698 Attachment: Collier Excess WC Exhibit 8-10-21 (17753 : Approval to Purchase Excess Workers'