Agenda 09/12/2023 Item #16E 4 (Protect the County against finacial loss arising from Worker's Comp related claims)09/12/2023
EXECUTIVE SUMMARY
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, 2023.
Pre-renewal market negotiations indicated the incumbent could deliver the most favorable renewal terms.
Staff recommends the placement of coverage with Arch Insurance Company as follows:
FY 23 FY 24 Change
Estimated Ratable Payroll $174,121,043 $206,268,310 18.46%
Rate per $100 of Payroll 0.1185 0.1185 0%
Premium $206,333 $244,428 18.46%
The significant highlights of the FY 2024 renewal are as follows.
• Estimated ratable payroll increased 18.46%
• The rate per $100 of payroll remains the same as FY 2023
• Overall premium compared to FY 23 is estimated to increase $38,095
• The increase in overall premium is exclusively due to the increase in reportable payroll rather than an
increase of 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, 2023.
FISCAL IMPACT: The estimated annual premium is $244,428. Sufficient funds have been budgeted within Fund
5018, 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, is approved as to form and
legality 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, 2023.
Prepared by: Michael K. Quigley, RMPE, Division Director, Risk Management Division
ATTACHMENT(S)
1. Collier Escess WC Renewal and Premium Comparison 23-24 (PDF)
16.E.4
Packet Pg. 970
09/12/2023
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.4
Doc ID: 26461
Item Summary: Recommendation to approve the purchase of Excess Workers’ Compensation Insurance for FY
2024 with Arch Insurance Company in the estimated annual amount of $244,428.
Meeting Date: 09/12/2023
Prepared by:
Title: Manager, Risk Finance – Risk Management
Name: Greily Gonzalez
08/23/2023 12:33 PM
Submitted by:
Title: Risk Management Director – Risk Management
Name: Michael Quigley
08/23/2023 12:33 PM
Approved By:
Review:
Risk Management Michael Quigley Director Review Completed 08/23/2023 12:38 PM
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 08/23/2023 12:40 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 08/23/2023 2:53 PM
Office of Management and Budget Blanca Aquino Luque Additional Reviewer Completed 08/24/2023 9:40 AM
County Manager's Office Amy Patterson Level 4 County Manager Review Completed 09/05/2023 12:59 PM
Board of County Commissioners Geoffrey Willig Meeting Pending 09/12/2023 9:00 AM
16.E.4
Packet Pg. 971
Covered Party:
Effective Date:
Version Date:
LIMIT ANNUAL
PREMIUM LIMIT ANNUAL
PREMIUM 2022/2023 2023/2024
$174,121,043 $206,268,310
Excess Workers' Compensation Statutory 206,333$ Statutory 244,428$ 32,147,267$
$3M / $3M / $3M $3M / $3M / $3M 18.46%
Limited Jones Act Coverage 1,000,000$ 1,000,000$
Limited USL&H Coverage 1,000,000$ 1,000,000$
38,095$
206,333$ 244,428$ 18.46%
206,333$ 244,428$
38,095$
18.46%
Collier County BOCC
10/1/2023
8/17/2023
Coverage & Premium Comparison
2022/2023 2023/2024 Changes in Exposures
LINE OF COVERAGE DEDUCTIBLE/SIR DEDUCTIBLE/SIR
Excess Workers' Compensation:Payroll
Arch Insurance Company
600,000$ 600,000$ Exposure
DifferenceEmployers Liability 600,000$ 600,000$
600,000$ Keller Online Resource
600,000$ 600,000$
Premium
Difference
% Difference
2-Year Rate Guarantee Offered
Sub-Total Sub-Total
TOTAL PREMIUM
$ Difference
600,000$
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. 972 Attachment: Collier Escess WC Renewal and Premium Comparison 23-24 (26461 : Approval to Purchase