Agenda 09/24/2019 Item #16E 6 (Purchase Excess Workers Compennsation Insurance for FY2020)09/24/2019
EXECUTIVE SUMMARY
Recommendation to approve the purchase of Excess Workers’ Compensation Insurance from Arch
Insurance Company for FY2020 in the estimated annual amount of $157,219.
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 $500,000 per
claim and refers to that portion of each claim that is paid by the county before the excess carrier assumes
payment of the claim. Excess insurance is purchased to protect against catastrophic losses. Claims are
administered by Johns Eastern Company. Insurance and Risk Management Services (IRMS) is the
County’s contracted broker of record for the program. The current carrier is Arch Insurance Company
with coverage expiring September 30, 2019.
The significant highlights of the FY 2020 renewal are as follows.
• Projected ratable payroll increased 1.19%
• The rate per $100 remained unchanged
• Total Premium cost remained relatively unchanged, increasing $1,808
FY 19 FY 20 Change
Ratable Payroll $149,003,444 $150,778,210 1.19%
Rate per $100 .1043 .1043 0%
Premium $155,411 $157,219 $1,808
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, 2019.
FISCAL IMPACT: The estimated annual premium is $157,219. 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 authorize the County Manager or designee to complete the applications or
other documents necessary to bind coverage effective October 1, 2019.
Prepared by: Jeffrey A. Walker, CPCU, ARM, Division Director, Risk Management Division
16.E.6
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09/24/2019
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.6
Doc ID: 9955
Item Summary: Recommendation to approve the purchase of Excess Workers’ Compensation
Insurance from Arch Insurance Company for FY2020 in the estimated annual amount of $157,219.
Meeting Date: 09/24/2019
Prepared by:
Title: Division Director - Risk Management – Risk Management
Name: Jeff Walker
08/26/2019 3:35 PM
Submitted by:
Title: Division Director - Risk Management – Risk Management
Name: Jeff Walker
08/26/2019 3:35 PM
Approved By:
Review:
Administrative Services Department Paula Brethauer Level 1 Division Reviewer Completed 08/26/2019 4:01 PM
Administrative Services Department Len Price Level 2 Division Administrator Review Completed 09/06/2019 2:57 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 09/10/2019 11:49 AM
Office of Management and Budget Laura Wells Additional Reviewer Completed 09/11/2019 2:25 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 09/12/2019 10:47 AM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 09/16/2019 2:58 PM
Board of County Commissioners MaryJo Brock Meeting Pending 09/24/2019 9:00 AM
16.E.6
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