Agenda 09/10/2024 Item #16E3 (Approve the purhase of excess workers' compensation insurance for FY 2025 with Arch Insurance Company - Estimated annual amount of $253,229)16.E.3
09/ 10/2024
EXECUTIVE SUMMARY
Recommendation to approve the purchase of excess workers' compensation insurance for FY 2025 with
Arch Insurance Company, in the estimated annual amount of $253,229.
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 meet statutory
requirements. Claims are administered by Davies North America. 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, 2024.
Due to a favorable loss experience the County qualified for the 2°d year rate guarantee. Therefore, marketing of the
excess workers' compensation statutory coverage policy was not performed this year.
Options were pursued to employ a buffer layer which effectively provides buy -down options to lower the self -
insured retention; however, as there have been no losses over the $300,000 retention, all buffer options produce an
additional cost equal to the annual premium.
Staff recommends the placement of coverage with Arch Insurance Company as follows:
FY 2024
FY 2025
Change
Estimated Ratable Payroll
$206,268,310
$213,695,207
3.60%
Rate per $100 of Payroll
0.1185
0.1185
0%
Premium
$244,428
$253,229
3.60%
The significant highlights of the FY 2025 renewal are as follows:
• Estimated ratable payroll increased 3.60%
• The rate per $100 of payroll remains the same as FY 2024
• Overall premium compared to FY 24 is estimated to increase $8,801
• The increase in overall premium is exclusively due to the increase in ratable 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, 2024.
FISCAL IMPACT: The estimated annual premium is $253,229. Sufficient funds have been budgeted within Fund
5018 (Workers' Compensation Fund) 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 at
this time and requires majority vote for approval. -JAK
RECOMMENDATION: To approve the purchase of workers' compensation coverage and authorize the County
Manager or designee to complete the applications or other documents necessary to bind coverage, effective October
1, 2024.
Packet Pg. 1145
16.E.3
09/ 10/2024
Prepared by: Michael K. Quigley, RMPE, Division Director, Risk Management Division
ATTACHMENT(S)
1. FY 2025 Excess WC Renewal and Premium Comparison (PDF)
Packet Pg. 1146
16.E.3
09/10/2024
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.3
Doc ID: 29785
Item Summary: Recommendation to approve the purchase of excess workers' compensation insurance for Fiscal
Year 2025 with Arch Insurance Company, in the estimated annual amount of $253,229.
Meeting Date: 09/10/2024
Prepared by:
Title: Manager, Risk Finance — Risk Management
Name: Greily Gonzalez
08/23/2024 10:51 AM
Submitted by:
Title: Risk Management Director — Risk Management
Name: Michael Quigley
08/23/2024 10:51 AM
Approved By:
Review:
Risk Management
Corporate Business Operations
Office of Management and Budget
Office of Management and Budget
County Attorney's Office
County Manager's Office
Board of County Commissioners
Michael Quigley Director Review
Kenneth Kovensky Corporate Business Operations Review
Debra Windsor Level 3 OMB Gatekeeper Review
Blanca Aquino Luque OMB Reviewer
Jeffrey A. Klatzkow Level 3 County Attorney's Office Review
Amy Patterson Level 4 County Manager Review
Geoffrey Willig Meeting Pending
Completed
08/23/2024 10:52 AM
Completed
08/26/2024 3:46 PM
Completed
08/26/2024 4:11 PM
Completed
08/27/2024 2:28 PM
Completed
08/27/2024 3:16 PM
Completed
09/03/2024 2:35 PM
09/10/2024 9:00 AM
Packet Pg. 1147
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