Agenda 09/09/2025 Item #16E 3 (The purchase of liability, automobile, cyber, and other miscellaneous insurance coverage for Fiscal Year 2026)9/9/2025
Item # 16.E.3
ID# 2025-2766
Executive Summary
Recommendation to approve the purchase of liability, automobile, cyber, and other miscellaneous insurance coverage for
Fiscal Year 2026 in the estimated premium of $1,188,677.89.
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, the Risk Management Division administers Fund
5016 (Property & Casualty Insurance Fund) to finance its Property and Casualty Insurance Program. Claims are
administered by Davies North America. Brown & Brown is the County’s contracted broker of record.
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, 2025.
For the Fiscal Year 2026 renewal, a Coverage & Premium Comparison 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 6.51% or $72,675.90. This increase is due primarily to an increase in
ratable exposures as reported in the application to the underwriters.
• The property insurance policy renews on April 1, 2026, 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.
This item is consistent with the Collier County strategic plan objective to prepare for the impacts of natural disasters on
our critical infrastructure and natural resources.
FISCAL IMPACT: The estimated annual premium is $1,188,677.89, as outlined in the FY 2026 Renewal Summary &
Premium Comparison sheet. Sufficient funds have been budgeted within Fund 5016 (Property & Casualty Insurance
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 and
requires a majority vote for approval. -JAK
RECOMMENDATIONS: It is recommended that the Board approves the following:
1) The purchase of insurance coverage as outlined in the Executive Summary and the FY 2026 Renewal Summary &
Premium Comparison sheet effective October 1, 2025.
2) The rejection of Uninsured Motorist Insurance, authorizing the County Manager or designee to execute the necessary
rejection forms.
3) Authorize the County Manager or designee to complete and execute the applications, legal counsel engagement letter
as required by the cyber insurance carrier, or other documents necessary to bind coverage and services effective October
1, 2025.
Page 1594 of 2661
9/9/2025
Item # 16.E.3
ID# 2025-2766
PREPARED BY: Michael K. Quigley, RMPE, Director, Risk Management Division
ATTACHMENTS:
1. Collier 10-1 Casualty Executive Summary 25-26
2. FY 2026 Renewal Summary & Premium Comparison
Page 1595 of 2661
1 | P a g e
As of 8/19/2025
Public Sector
Collier County Board of County Commissioners, et al
Executive Summary – 10/1/25-26 Insurance Renewals
Excess Casualty, Cyber, Crime, Terrorism Liability/Active Shooter,
Pollution, AD&D
Insurance Renewal Program Per Expiring
2024/2025 2025/2026 Difference
LINE OF COVERAGE ANNUAL PREMIUM* RECOMMENDED
PROGRAM PREMIUM $ %
Excess Casualty Package $817,713.00 $885,167.00 $67,454.00 8.25%
Cyber Liability: $187,000.00 $187,000.00 - -
*Crime: (XS Crime $9,216.99) $11,938.89 ($10,335.62) (46.40%)
Terrorism Liability &
Sabotage/Active
Shooter:
$76,500.00 $79,000.00 $2,500.00 3.27%
AD&D First Responders
Statutory $572.00 $572.00 - -
TOTAL PREMIUM $1,091,001.99 $1,163,677.89 $72,675.90 6.66%
Pollution Liability (3-Year
Term prepaid in 2023 )
2023-2026
$169,651.72
2023-2026
Pre-Paid on 10/1/2023
*See recommended option for Crime Coverage on following page:
- Restructuring coverage for enhanced limits and premium savings of $10,335.62
Financial Results
➢ Exposure Increase in Revenues: 0.99%
➢ Exposure Increase in Payroll: 4.80%
➢ Exposure Increase in Automobile / Equipment: 7.07%
Page 1596 of 2661
2 | P a g e
As of 8/19/2025
Crime Coverage Option
➢ Current coverage with All Lines Aggregate Package policy for $1,000,000 limits with
$100,000 deductible, plus $4,000,000 excess limits via an excess policy ($5,000,000 total
Crime limits).
➢ Travelers has quoted a single policy to address the $5,000,000 limits, with the following
advantages:
o Lower deductible
▪ $25,000 vs. $100,000
o Faithful Performance coverage $5M limits vs. $1M limits
o Ease of administration for a single policy
➢ Coverage transition notes
o Discovery periods
o Insureds- confirmed Constitutionals are included
Page 1597 of 2661
3 | P a g e
As of 8/19/2025
Insurance Market Conditions
Casualty | 2025
Excess Liability Market
Overview
• Nuclear verdicts drive costs and reduce capacity
For general/excess liability coverage, creating
a renewed focus on tort reform to help mitigate
negative impacts.
• The umbrella/excess market is challenging, with
fewer carriers, reduced limits and increased pricing.
Market Conditions
Umbrella/excess renewals face a challenging
marketplace. The space seeks rate adequacy as it
faces nuclear verdicts, which impact their
reserve adequacy. For higher-risk industries,
limits may be halved and paired with
higher premiums. Unsupported excess is more
challenging, with a shrinking number of markets providing capacity, while remaining markets
can deploy their capacity based on restrictive underwriting and price escalations. All renewals
will likely be impacted by unilateral underwriter decision-making across portfolios.
Impacts
Accounts with a supported umbrella coverage
are expected to experience a hard to stable
market. An unsupported umbrella remains hard
and is becoming more challenging.
Page 1598 of 2661
4 | P a g e
As of 8/19/2025
Commercial Auto
The business auto insurance market is experiencing significant rate increases and reduced
capacity. Carriers are grappling with higher claims costs driven by increased accident severity,
medical cost inflation and rising repair costs of more sophisticated vehicle technologies. Nuclear
verdict concerns, driver shortages, novice drivers and distracted driving all add to difficulties in
the insurance industry’s effort to maintain profitability and stability. This has led to a hardening
market with stricter underwriting standards and higher premiums.
Commercial Crime
Social engineering fraud continues to be a significant driver for claims in the commercial crime
space. AI advancements has posed significant impacts to the sophistication of fraudulent attacks.
The market remains flat, with exposure increases managed through retention adjustments.
Page 1599 of 2661
5 | P a g e
As of 8/19/2025
Insurance Market Conditions
CYBER RISK | 2025
Overview
Critical cyber and privacy controls are key underwriting requirements to prevent and mitigate
loss exposures.
Market Conditions
Due to increased premium volume and decreased losses, competition characterizes the cyber
arena. Underwriters remain concerned about privacy regulation claims, with some carriers
opting to limit coverage for unlawful collection. Additionally, underwriters continue to evaluate
critical cyber and privacy controls, including those listed below. Other controls may be
considered for more favorable offerings.
• Multi-factor authentication (MFA)
• Endpoint detection response (EDR)
• Backup procedures
• Employee training
• Incident response
• Business continuity plans
• Annual testing
Recent events carried out by the highly disruptive cybercrime group Scattered Spider highlight
the importance of strengthening defenses at the human level. The group’s industry focused
campaign tactics rely heavily on social engineering. The market is awar e of multiple intrusions
in the insurance industry that bear the hallmarks of Scattered Spider activity. Focusing on
employee training, strict identity verification and access monitoring to protect against this
evolving threat is strongly encouraged.
Page 1600 of 2661
Covered Party:
Effective Date:
Version Date:
LIMIT ANNUAL
PREMIUM LIMIT ANNUAL
PREMIUM 2024/2025 2025/2026
$2,942,049,700 $2,971,169,000
1,000,000$ 817,713.00$ 1,000,000$ 885,163.00$ 29,119,300$
$1,000,000 / $1,000,000 $1,000,000 / $1,000,000 0.99%
$1,000,000 / $1,000,000 $1,000,000 / $1,000,000
$5,000,000 / $10,000,000 $5,000,000 / $10,000,000
$1,000 / $50,000 $1,000 / $50,000 $58,744,494 $58,745,651
2,000,000$ 2,000,000$ 1,157$
5,000,000$ 5,000,000$ 0.002%
$1,000 / $25,000 $1,000 / $25,000
$5,000,000 / $10,000,000 $5,000,000 / $10,000,000
$5,000,000 / $5,000,000 $5,000,000 / $5,000,000 1,414 1,514
300,000$ 300,000$ 100.00
200,000$ 200,000$ 7.07%
1,000,000$ 11,231.00$ 1,000,000$ 12,821.00$
1,000,000$ 1,000,000$ $213,695,207 $223,960,304
1,000,000$ 1,000,000$ 10,265,097$
1,000,000$ 1,000,000$ 4.80%
1,000,000$ 1,000,000$
4.00$ 67,454.00$
817,713.00$ 885,167.00$ 8.25%
2,621 2,678
4,000,000$ 9,103.20$ 4,000,000$ 9,336.80$ 57$
1,000,000$ 1,000,000$ 2.17%
4,000,000$ 4,000,000$
4,000,000$ 4,000,000$
113.79$ 116.71$ 236.52$
9,216.99$ 9,453.51$ 2.57%
2,621 2,678
57$
5,000,000$ 11,902$ 2.17%
5,000,000$
5,000,000$
5,000,000$
5,000,000$
5,000,000$
5,000,000$
22,274.51$
37.29$ (10,335.62)$
11,938.89$ -46.40%
$2,942,049,700 $2,971,169,000
5,000,000$ 187,000.00$ 5,000,000$ 187,000.00$ 29,119,300$
5,000,000$ 5,000,000$ 0.99%
5,000,000$ 5,000,000$
-$
187,000.00$ 187,000.00$ 0.00%
$1,408,598,220 $1,464,052,200
$10,000,000 / $20,000,000 26,500.00$ $10,000,000 / $20,000,000 26,500.00$ 55,453,980$
3.94%
$3,000,000 / $3,000,000 50,000.00$ $3,000,000 / $3,000,000 52,500.00$
25,000$ 25,000$
50,000$ 50,000$
$250,000 / $1,000,000 $250,000 / $1,000,000
$15,000/$250,000/$1,000,000 $15,000/$250,000/$1,000,000
$15,000/$250,000/$1,000,000 $15,000/$250,000/$1,000,000
2,500.00$
76,500.00$ 79,000.00$ 3.27%
8,000,000$ Prepaid 8,000,000$ Prepaid
1,000,000$ 1,000,000$
$2,000,000 / $8,000,000 $2,000,000 / $8,000,000
$500,000 / $500,000 $500,000 / $500,000
$2,000,000 / $8,000,000 $2,000,000 / $8,000,000
Collier County BOCC
10/1/2025
8/21/2025
Coverage & Premium Comparison
2024/2025 2025/2026 Changes in Exposures
LINE OF COVERAGE DEDUCTIBLE /
SIR
DEDUCTIBLE /
SIR
Excess Casualty Package:Revenues
Princeton Excess & Surplus Lines Ins. Co.
Auto Physical Damage/Equipment over $60k value 50,000$ 50,000$ Exposure
Difference Flood, Annual Aggregate, Excludes Zones A & V 50,000$ 50,000$
Earthquake, Annual Aggregate 50,000$ 50,000$
General Liability 300,000$ 300,000$ Fleet
Medical Payments
Designated Unmanned Aircraft 300,000$ 300,000$ Exposure
DifferenceAutomobile Liability 300,000$ 300,000$
Medical Payments
Pubilc Officials / Employment Practices Liability 300,000$ 300,000$ Vehicles
Physical or Sexual Abuse 300,000$ 300,000$
Ethics Violations -$ -$ Exposure
Difference Inverse Condemnation/Eminent Domain 300,000$ 300,000$
Crime
Employee Dishonesty 100,000$ 100,000$ Payroll
Loss Inside the Premises 100,000$ 100,000$
Loss Outside the Premises 100,000$ 100,000$ Exposure
Difference Money Orders & Counterfeit Paper Currency 100,000$ 100,000$
Forgery or Alteration 100,000$ 100,000$
EMPA Fee Premium
DifferenceSub-Total
Excess Crime:# of Employees
Allmerica Financial Benefits Ins. Co. / Hanover
Employee Dishonesty - Per Loss 1,000,000$ 1,000,000$ Exposure
DifferenceFaithful Performance 1,000,000$ 1,000,000$
Computer Fraud 1,000,000$ 1,000,000$
Funds Transfer Fraud 1,000,000$ 1,000,000$
FIGA Assessment FIGA Assessment Premium
DifferenceSub-Total Sub-Total
Crime
Option
# of Employees
Travelers Causalty and Surety Co. of America
Exposure
DifferenceEmployee Theft 25,000$
Forgery or Alteration 25,000$
On Premises 25,000$
In Transit 25,000$
Computer and Funds Transfer Fraud 25,000$
Money Orders & Counterfeit Money 25,000$ 25/26 Package +
Hanover Computer Crime 25,000$
FIGA Assessment 2025 DifferenceSub-Total
Cyber Liability:Coverage Details Exempt from Public Record per HB7057 Coverage Details Exempt from Public Record per HB7057 Revenues
Starr Surplus Lines Insurance Company
Privacy and Cyber Security 250,000$ 250,000$ Exposure
DifferenceData Breach Response and Crisis Management Coverage 250,000$ 250,000$
Data Recovery 250,000$ 250,000$
Premium
DifferenceSub-Total Sub-Total
Terrorism Liability:TIV
Beazley Excess & Surplus Insurance, Inc.
Terrorism & Sabotage Liability 100,000$ 100,000$ Exposure
Difference
Deadly Weapon:
Beazley Excess & Surplus Insurance, Inc.
Deadly Weapon Protection 10,000$ 10,000$
Medical Expenses, per person/occurrence 10,000$ 10,000$
Accidental Death & Dismemberment, per person/occ 10,000$ 10,000$
Crisis Management Services 10,000$ 10,000$
Counseling Services (per person/event/aggregate)10,000$ 10,000$
Funeral Expenses (per person/event, aggregate)10,000$ 10,000$
Premium
DifferenceSub-Total Sub-Total
Pollution Liability:3-Year Term - Prepaid 3-Year Term - Prepaid
Indian Harbor Insurance Company / AXA XL 10/1/2023 - 10/1/2026 10/1/2023 - 10/1/2026
Policy Aggregate Limit of Liability 100,000$ 100,000$
Legal Expense Aggregate 100,000$ 100,000$
Pollution Condition at Your Location 100,000$ 100,000$
Emergency Remediation Expense 100,000$ 100,000$
Non-Owned Disposal Site 100,000$ 100,000$
Purpose
Primary coverage layer
providing coverage for
bodily injury, property
damage, professionl acts,
employment practices,
limited inverse
condemnation/eminent
domain, employee
dishonesty/fidelity,
automobile liability, and
automobile physical
damage pursuant to F.S.
768.28, Federal Statutes.
This policy along with the
primary layer under the
package policy will be
replace with a stand along
policy with Travelers
Crime policy providing
coverage for employee
dishonesty, faithful
performance by public
officials and computer and
funds transfer fraud.
Provides coverage for
liability from a data breach;
defense costs; ransomware
and mitigation/compliance
costs associated with a
breach response.
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 attacks.
Provides legal liability,
remediation, and defense
costs for premises pollution,
and fuel storage tank
liability pursuant to Florida
Financial Responsibility and
FDEP requirements.
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.Page 1601 of 2661
Covered Party:
Effective Date:
Version Date:
LIMIT ANNUAL
PREMIUM LIMIT ANNUAL
PREMIUM 2024/2025 2025/2026
Collier County BOCC
10/1/2025
8/21/2025
Coverage & Premium Comparison
2024/2025 2025/2026 Changes in Exposures
LINE OF COVERAGE DEDUCTIBLE /
SIR
DEDUCTIBLE /
SIR
Excess Casualty Package:Revenues
Purpose
Primary coverage layer
providing coverage for
bodily injury, property
damage, professionl acts,
employment practices,
limited inverse
condemnation/eminent
domain, employee
dishonesty/fidelity,
automobile liability, and
automobile physical
damage pursuant to F.S.
768.28, Federal Statutes.
Included (5 Tanks)Included (5 Tanks)
$1,000,000 / $3,000,000 $1,000,000 / $3,000,000
Included Included
Prepaid Prepaid
225 225
225,000$ 572.00$ 225,000$ 572.00$ 0
75,000$ 75,000$ 0.00%
75,000$ 75,000$
-$
572.00$ 572.00$ 0.00%
$25,000 $25,000
1,116,001.99$ 1,188,677.89$
72,675.90$
6.51%
Underground Storage Tanks 200,000$ 200,000$
Unscheduled Locations 100,000$ 100,000$
TRIA Terrorism
Sub-Total Sub-Total
AD&D First Responders Statutory:2-Year Term - Annual Installments 2-Year Term - Annual Installments # of Employees
10/1/2024 - 10/1/2026 10/1/2024 - 10/1/2026
Unlawful & Intentional Death -$ -$ Exposure
DifferenceIn the Line of Duty -$ -$
Fresh Pursuit -$ -$ Removed Sheriff Dept 24/25
Premium
DifferenceRecommended Nat'l Union Fire
% Difference
Recommended Nat'l Union Fire
TOTAL PREMIUM 2024/2025 2025/2026
$ Difference with Travellers Crime Option
Sub-Total
3,300,300$
Death benefits provided
to paramedic staff
pursuant to FS 112.19.
Provides legal liability,
remediation, and defense
costs for premises pollution,
and fuel storage tank
liability pursuant to Florida
Financial Responsibility and
FDEP requirements.
Contigent coverage for
any alledged liability of
County for Sheriff
operations.
Contigent Law Enforcement Statutory
Florida Sheriff's Self-Insurance Fund 3,300,300$
Sub-Total
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.Page 1602 of 2661