Agenda 09/28/2021 Item #16E 4 (Purchase of Liability, Auto and Insurance Coverage)09/28/2021
EXECUTIVE SUMMARY
Recommendation to approve the purchase of Liability, Automobile, and other insurance coverage
for FY 2022 in the estimated premium of $897,494.
OBJECTIVE: To protect the County against financial loss from casualty related claims and lawsuits and
to comply with contractual and statutory requirements through the implementation of a cost effective, best
value Casualty Insurance program.
CONSIDERATIONS: Pursuant to Florida Statutes Section 768.28 and Chapter 440, the Risk
Management Division administers the Property Casualty Fund (Fund 516) to finance its Property,
Casualty program. Claims are administered by Johns Eastern Company. Assured Partners of Florida
(Insurance and Risk Management Services) is the County’s contracted broker of record for coverage.
The County purchases excess coverage to protect against catastrophic losses; to cover a cause of action
not limited by a state statutory tort cap (such as Employment Practices Liability); to comply with
contractual requirements such as grants and leases; or if a claims bill is enacted pursuant to chapter
768.28, Fla. Statutes. The current program expires on September 30, 2021.
For the FY 2022 renewal, a Renewal Summary Sheet is attached which illustrates the pricing for each
carrier by line of coverage and the purpose/basis of each coverage. The significant highlights of the
renewal are as follows.
· Total premium for all coverage lines increased 2.55% or $23,523. This increase is due primarily to an
increase in ratable exposures as reported in the application to the Underwriters and a general
hardening of the market, primarily in the Cyber insurance sector.
· The Property Insurance program renews on April 1, 2022 and is not included in this recommendation.
Additionally, Aviation, Flood and Workers’ Compensation Insurance are not included in this
recommendation and will be submitted separately.
All carriers hold a Best’s financial rating of “A, Superior” or higher.
FISCAL IMPACT: The estimated annual premium is $946,872; however, the Pollution insurance
policy was pre-paid for three years in FY 21, thus, no premium will be due in FY 22 and FY 23.
Therefore, the net premium due in FY 22 estimated to be $897,494 as outlined in the Renewal Summary
Sheet. Sufficient funds have been budgeted within Fund 516, Property and Casualty Insurance for this
purchase.
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: It is recommended that the Board approves the following:
1) The purchase of insurance coverage as outlined in the Executive Summary and the Renewal
Summary Sheet effective October 1, 2021.
2) The rejection of Uninsured Motorist Insurance, authorizing the County Manager or designee to
16.E.4
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09/28/2021
execute the necessary rejection forms.
3) Authorize the County Manager or designee to complete the applications or other documents
necessary to bind coverage and services effective October 1, 2021.
Prepared by: Jeffrey A. Walker, CPCU, ARM, Director, Risk Management Division
ATTACHMENT(S)
1. FY 22 Casualty Renewal Summary (2) (PDF)
2. Marketing Detail Letter (PDF)
16.E.4
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09/28/2021
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.4
Doc ID: 19987
Item Summary: Recommendation to approve the purchase of Liability, Automobile, and other
insurance coverage for FY 2022 in the estimated premium of $897,494.
Meeting Date: 09/28/2021
Prepared by:
Title: Operations Coordinator – Risk Management
Name: Greily Gonzalez
09/07/2021 10:24 AM
Submitted by:
Title: Division Director - Risk Management – Risk Management
Name: Jeff Walker
09/07/2021 10:24 AM
Approved By:
Review:
Agenda Clerk Preview Geoffrey Willig Agenda Clerk Preview Completed 09/07/2021 11:03 AM
Risk Management Jeff Walker Director Review Completed 09/07/2021 1:42 PM
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 09/07/2021 1:54 PM
Office of Management and Budget Laura Wells Additional Reviewer Completed 09/07/2021 4:11 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 09/08/2021 8:25 AM
County Manager's Office Geoffrey Willig Level 4 County Manager Review Completed 09/20/2021 4:42 PM
Board of County Commissioners Geoffrey Willig Meeting Pending 09/28/2021 9:00 AM
16.E.4
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Collier County Government
FY 22 Casualty Insurance
Renewal Summary
FY 22 Premium and Limits
All Lines Aggregate $ 633,956 $ 576,264 -9.10%
Limits Purchased:$5,000,000 General Liability $5,000,000 General Liability
$5,000,000 Auto Liability $5,000,000 Auto Liability
$5,000,000 Public Officials $5,000,000 Public Officials
$600,000 Workers Comp $1,000,000 Auto Physical
$1,000,000 Auto Physical Damage Replacement
Damage Replacement $1,000,000 Crime
$1,000,000 Crime
Terrorism/Active Shooter Liability $ 79,375 $ 63,745 -19.69%Underwriters at
Lloyds
Terrorism- $10,000,000 per
occurrence/ $20,000,000
aggregate. Active Shooter-
$5,000,000 limit per occurrence.
Terrorism- $10,000,000 per
occurrence/ $20,000,000
aggregate. Active Shooter-
$3,000,000 limit per occurrence.
Excess Crime (Employee
Dishonesty)
$ 10,276 $ 10,732 4.44%
Limits Purchased:$4,000,000 Employee $4,000,000 Employee
Dishonesty Dishonesty
$4,000,000 Computer $4,000,000 Computer
and Funds Transfer Fraud and Funds Transfer Fraud
$1,000,000 Faithful Performance $1,000,000 Faithful Performance
Statutory Accidental Death $ 18,428 $ 18,428 0.00%
Limits Purchased:Statutory- Includes Statutory
Changes pertaining to Cancer
Presumption
Statutory- Includes Statutory
Changes pertaining to Cancer
Presumption
Carrier/Vendor
FY 22 Casualty Renewal Summary
This is a two year rate
guarantee.
Hartford Insurance Death benefits provided to law enforcement
officers and extended to paramedic staff
pursuant to FS 112.19.
Policy Type FY 21 Premium and Limits % Change FY 21 Deductibles and Notes
$1,000,000 retention Hanover Insurance
Purpose
$300,000 per occurrence for
General Liability, Automobile
Liability and Public Officials
Liability; $100,000 for Crime;
and $50,000 for Auto Physical
Damage
Primary coverage layer providing coverage
for bodily injury, property damage,
professional acts, employment practices,
workers' compensation, limited inverse
condemnation/eminent domain, and
employee dishonesty/fidelity. FS 768.28, FS
440, Federal Statutes.
$100,000 retention per
occurrence.
Terrorism is excluded from most policies.
This program covers liability arising out of
acts of foreign and domestic terrorism
otherwise excluded. Active Shooter-First
Party Coverage for Direct Physical Damage.
Third Party Coverage for Bodily Injury and
Property Damage resulting from Malicious
Attack.
Princeton Excess and
Surplus
Excess crime layer providing coverage for
employee dishonesty, Faithful performance
by public officials and Computer and Funds
Transfer Fraud.
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16.E.4.a
Packet Pg. 1302 Attachment: FY 22 Casualty Renewal Summary (2) (19987 : Approval of Liability, Automobile, & Other
Collier County Government
FY 22 Casualty Insurance
Renewal Summary
Pollution Liability $ 49,378 $ 49,378 0.00%
$148,134 for Three year Rate $148,134 for Three year Rate
Limits Purchased:$2,000,000 each loss $2,000,000 each loss
$4,000,000 aggregate $4,000,000 aggregate
Maritime Employers Liability $ 13,905 $ 16,337 17.49%
Limits Purchased:$1,000,000 $1,000,000
Excess Maritime Employers
Liability
$ 17,031 $ 19,268 13.13%
Limits Purchased:$4,000,000 $4,000,000
Cyber Insurance $ 76,000 $ 167,720 120.68%
Limits Purchased:$10,000,000- Recommended due
to recent increase in Cyber
attacks on Public Entities
$5,000,000- Recommended due
to recent increase in Cyber
attacks on Public Entities
Contingent Law Enforcement
Professional
$ 25,000 $ 25,000 0.00%
Limits Purchased:$3,100,000 Limit $3,100,000 Limit
$3,300,000 Aggregate $3,300,000 Aggregate
Total Premium 923,349$ 946,872$ 2.55%
FY 22 Premium Due (Total less
Prepaid*)897,494$
Change in Ratable Exposures
FY 21 FY 22 % Chg.
Budget 2,059,994,300$ 2,204,425,700$ 7.01%
Net Operating Expenditures 932,494,095$ 992,465,047$ 6.43%
Employees 2,484$ 2,418$ -2.66%
Vehicles 1,207$ 1,193$ -1.16%
Auto Physical Damage Values 31,686,994$ 37,492,295$ 18.32%
Payroll 153,308,009$ 155,590,409$ 1.49%
Average Change 4.91%
Provides coverage for liability from a data
breach; defense costs; ransomware and
mitigation/compliance costs associated with
a breach response
Provides coverage for the liability arising out
of the operation of watercraft; injury to crew;
and injury to divers pursuant to the Jones
Act 33 U.S.C. Sec. 901.
$100,000 deductible per loss.
For FY 21 the carrier offered a
three year rate guarantee in
the amount of $148,134 pre
paid. FY 22 is the second year
of a three year rate guarantee.
The annual premium amount is
shown is for comparison
purposes.
Indian Harbor Liability and clean up coverage for the
discharge of pollutants from scheduled
tanks, landfills and vehicles to comply with
FS 376.309- Financial Responsibility Law.
$10,000
*Pollution was prepaid for a three year period in FY21. Premium will not be due in FY 22.
Liberty Mutual
Insurance Company
None Florida Sheriff’s Self-
insurance Fund
Coverage to protect the Board of
Commissioners for negligent acts arising
out of the law enforcement activities of the
Sheriff pursuant to various Florida Statutes,
case law and Federal Statutes.
$1,000,000 American Alternative
Insurance
$250,000 Indian Harbor
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16.E.4.a
Packet Pg. 1303 Attachment: FY 22 Casualty Renewal Summary (2) (19987 : Approval of Liability, Automobile, & Other
September 2, 2021
Jeff Walker, Division Director
Risk Management Division
3311 Tamiami Trail, East, #D
Naples, FL 34112
Re: Casualty Insurance Renewal Effective 10/1/21 – Marketing Detail
Jeff;
Package – Auto Physical Damage, General Liability, Auto Liability, Public Officials
Liability, Crime Insurance, Worker’s Compensation – Princeton Excess & Surplus
Insurance Company
1. Policy limits and self-insured retentions remain the same as expiring. A Communicable
Disease Exclusion will be added at renewal. A specimen form is attached.
2. Annual premium: $628,764
Expiring premium: $633,956
3. Ratable exposures have changed for the renewal:
20-21 21-22
Budget $2,059,994,300 $2,204,425,700
Net Operating
Expenditures
$932,494,095 $992,465,047
Employees 2,484 2,418
Vehicles 1,207 1,193
APD Values $31,686,994 $37,492,295
Payroll $153,308,009 $155,590,409
4. There are options available for consideration:
a. Auto Physical Damage
1) Increase the SIR from $50,000 to $100,000 - $3,900 premium savings
2) Increase the limit on covered items from $60,000 to $100,000 - $1,785 savings
3) Increase the limit on covered items from $60,000 to $150,000 - $5,140 savings
4) Remove the Auto Physical Damage from the ALA - $140,359 savings
16.E.4.b
Packet Pg. 1304 Attachment: Marketing Detail Letter (19987 : Approval of Liability, Automobile, & Other Insurance for FY 2022)
b. Auto Liability
1) Remove the Uninsured Motorists coverage on Take-Home vehicles - $2,500 savings
c. Auto Liability, General Liability, Public Officials Liability and Auto Physical Damage
1) Increase the SIR from $300,000 per occurrence to $500,000 per occurrence on AL,
GL and POL, and from $50,000 to $100,000 on APD – annual premium $531,529 – a
savings of $97,235
d. General Liability and Public Officials Liability
1) Increase the SIR from $300,000 per occurrence to $500,000 per occurrence – annual
premium $558,448 – a savings of $70,316
e. Worker’s Compensation
1) Remove this coverage from the ALA - $50,000 savings
f. General
1) Remove the Clash coverage – PESLIC is not able to offer this.
5. Additional markets approached for quotes:
a. Risk Placement Services (the current broker)
1) Ambridge/BRIT – Pending
b. Safety National – declined to quote as they were unable to compete on the Excess
Worker’s Compensation portion. Their casualty program is only offered in congruence
with their Excess WC program.
c. Preferred Governmental Insurance Trust (PGIT) – declined to quote. Cannot compete
with the broad scope of coverage in the current program, cannot provide physical damage
coverage because of capacity issues.
d. Florida League of Cities, Inc. – informed us they do not wish to provide a proposal at this
time.
e. Breckenridge Insurance – informed us they are unable to provide a quote at this time.
1) Underwriters at Lloyds
f. Apex Insurance Services
1) Berkley - Pending
2) Chubb Insurance - Pending
3) Old Republic - Pending
4) Travelers Insurance – declined as Johns Eastern is not an approved TPA
16.E.4.b
Packet Pg. 1305 Attachment: Marketing Detail Letter (19987 : Approval of Liability, Automobile, & Other Insurance for FY 2022)
Terrorism Liability/Active Shooter Liability – Underwriters at Lloyds (Hiscox)
1. Policy limits and self-insured retentions remain the same as expiring.
2. Annual Premium: $88,745
Expiring Premium: $79,375
3. Ratable exposures have changed for the renewal:
20-21 21-22
Total Insured Values $1,024,438,779 $1,048,557,727
4. Option to consider:
a. Reduce the Active Shooter limit from $5,000,000 to $3,000,000 - $25,000 savings
Excess Crime – Hanover Insurance Company
1. Excess limits above the Crime coverage included in the Package policy remain the same as
expiring.
2. Annual premium: $10,732
Expiring premium: $10,276
Statutory Accidental Death & Disability – Hartford Insurance Company
1. Policy limits are per the statute. This is a 2-year fixed rate policy.
2. Annual premium: $18,428 (for the period 10/1/21-22)
Expiring premium: $18,428
Pollution Liability – Indian Harbor Insurance Company
1. Policy limits and self-insured retentions remain the same as expiring.. This is a 3-year fixed
rate policy.
2. Annual premium: $49,378 (for the period 10/1/21-22)
Expiring premium: $49,378
16.E.4.b
Packet Pg. 1306 Attachment: Marketing Detail Letter (19987 : Approval of Liability, Automobile, & Other Insurance for FY 2022)
Cyber Insurance – Indian Harbor Insurance Company
1. Policy limits and deductible have changed for renewal:
a. Combined Aggregate limit is reduced from $10,000,000 to $5,000,000
b. The limit for Ransomware claims is reduced from $10,000,000 to $1,000,000
c. The self-insured retention is increased from $100,000 to $250,000
2. Annual premium: $167,720
Expiring premium: $76,000
3. The increase in premium and the reduction in coverage are due to the state of the Cyber
Insurance market. This market has hardened significantly primarily because of the
substantial increase in the number of ransomware incidents.
4. Options are available for consideration:
a. Optional limits and deductibles:
Option #1 Option #2 Option #3 Option #45 Option #5 Option $6
Premium $167,720 $155,121 $215,030 $216,227 $273,311 $144,121
Limit $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $2,500,000
Retention $250,000 $500,000 $500,000 $1,000,000 $1,000,000 $250,000
Cyber Extortion,
Ransomware Limit
$1,000,000 $1,000,000 $2,500,000 $2,500,000 $5,000,000 $1,000,000
b. $5,000,000 Excess of $5,000,000 - Pending
5. Additional markets were approached for quotes:
a. Risk Placement Services (the current broker) – all of these markets declined to quote
because of the substantial increase in the number of ransomware incidents for the Public
Entity class of business.
1) Beazley
2) Travelers
3) TMHCC
4) Chubb
5) ATB
6) Corvus
7) Coalition
16.E.4.b
Packet Pg. 1307 Attachment: Marketing Detail Letter (19987 : Approval of Liability, Automobile, & Other Insurance for FY 2022)
b. Underwriters at Lloyds via Assured Partners London – “Unfortunately the London
market has taken a pause writing Municipalities currently due to a rising number of
ransomware claims emanating from this sector”.
c. Evolve MGA (Cyber MGA) – “Unfortunately, after reviewing this with our corporate
team, this will have to be a decline due to the sheer size. When it comes to government
entities, we have a strict appetite at the current moment, so despite the controls the
Insured has in place, we will be unable to quote this”.
Maritime Employer’s Liability – Atlantic Specialty Insurance Company
1. Policy limits and self-insured retentions remain the same as expiring.
2. Annual premium: $16,587
Expiring premium: $12,555
3. The increase is due to the hardened insurance marketplace.
Excess Maritime Employer’s Liability – American Alternative Insurance Company
1. Policy limits and underlying coverages remain the same as expiring.
2. Annual premium: $19,268
Expiring premium: $17,031
Please let us know of any questions.
Sincerely,
William H. Kuhlman, CPCU
Vice President
Robert E. Thorngate, CPCU
Senior Account Executive
16.E.4.b
Packet Pg. 1308 Attachment: Marketing Detail Letter (19987 : Approval of Liability, Automobile, & Other Insurance for FY 2022)