Agenda 09/27/2022 Item #16E 4 (Purchase of Excess Workers Compensation Insurance for FY 2023 with Arch Insurance Company)09/27/2022
EXECUTIVE SUMMARY
Recommendation to approve the purchase of Excess Workers’ Compensation Insurance for FY
2023 with Arch Insurance Company in the estimated annual amount of $206,333.
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 Company.
Brown and Brown is the County’s contracted broker of record for the program. The current carrier is Arch
Insurance Company with coverage expiring September 30, 2022.
Pre-renewal market negotiations indicated the incumbent could deliver the most favorable renewal terms.
A full marketing of the program last occurred in 2021 for the FY 22 renewal.
Staff recommends the placement of coverage with Arch Insurance Company as follows:
FY 22 FY 23 Change
Estimated Ratable Payroll $155,590,409 $174,121,043 11.91%
Rate per $100 of Payroll .1150 .1185 3.04%
Premium $178,929 $206,333 15.32%
The significant highlights of the FY 2023 renewal are as follows.
• Estimated ratable payroll increased 11.91%
• The rate per $100 of payroll increased 3.04%
• Overall premium compared to FY 22 is estimated to increase $27,404
• The increase in overall premium is largely due to the increase in reportable payroll rather than an
increase in the rate per $100 of payroll
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, 2022.
FISCAL IMPACT: The estimated annual premium is $206,333. 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 authorizes the County Manager or designee to complete the applications or
other documents necessary to bind coverage effective October 1, 2022.
Prepared by: Jeffrey A. Walker, CPCU, ARM, Division Director, Risk Management Division
ATTACHMENT(S)
1. Excess WC Renewal Prem Comp Coverage & Premium Comparison Sheet (PDF)
16.E.4
Packet Pg. 1585
09/27/2022
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.4
Doc ID: 23221
Item Summary: Recommendation to approve the purchase of Excess Workers’ Compensation
Insurance for FY 2023 with Arch Insurance Company in the estimated annual amount of $206,333.
Meeting Date: 09/27/2022
Prepared by:
Title: Operations Coordinator – Risk Management
Name: Greily Gonzalez
08/31/2022 3:55 PM
Submitted by:
Title: Division Director - Risk Management – Risk Management
Name: Jeff Walker
08/31/2022 3:55 PM
Approved By:
Review:
Risk Management Jeff Walker Director Review Completed 08/31/2022 4:22 PM
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 08/31/2022 4:31 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 09/01/2022 9:03 AM
Office of Management and Budget Susan Usher Additional Reviewer Completed 09/15/2022 9:17 AM
County Manager's Office Dan Rodriguez Level 4 County Manager Review Completed 09/19/2022 2:22 PM
Board of County Commissioners Geoffrey Willig Meeting Pending 09/27/2022 9:00 AM
16.E.4
Packet Pg. 1586
Covered Party:
Effective Date:
Version Date:
LIMIT ANNUAL
PREMIUM LIMIT ANNUAL
PREMIUM 2021/2022 2022/2023
$155,590,409 $174,121,043
Excess Workers' Compensation Statutory 178,929$ Statutory 206,333$ 18,530,634$
$3M / $3M / $3M $3M / $3M / $3M 11.91%
Limited Jones Act Coverage 1,000,000$ 1,000,000$
Limited USL&H Coverage 1,000,000$ 1,000,000$
27,404$
178,929$ 206,333$ 15.32%
178,929$ 206,333$
27,404$
15.32%
$ Difference
% Difference
600,000$ 600,000$ Keller Online Resource
600,000$ 600,000$
TOTAL PREMIUM
600,000$ 600,000$ Exposure
DifferenceEmployers Liability 600,000$
Premium
DifferenceSub-Total Sub-Total
600,000$
2022/2023
Excess Workers' Compensation:Payroll
Arch Insurance Company
Changes in Exposures
LINE OF COVERAGE DEDUCTIBLE/SIR DEDUCTIBLE/SIR
Collier County BOCC
10/1/2022
8/29/2022
Coverage & Premium Comparison
2021/2022
This proposal is intended to give a brief overview. Higher limits may be available. Please refer to coverage forms for complete details regarding definition of terms, exclusions and limitations.
16.E.4.a
Packet Pg. 1587 Attachment: Excess WC Renewal Prem Comp Coverage & Premium Comparison Sheet (23221 : Approval