Agenda 09/24/2019 Item #16E 8 (Purchase Liability Automobile Insurance Coverage for FY2020)09/24/2019
EXECUTIVE SUMMARY
Recommendation to approve the purchase of Liability, Automobile and other insurance coverage
for FY 2020 in the estimated annual amount of $856,464.
OBJECTIVE: To protect the County against financial loss from casualty related claims and lawsuits and
to comply with statutory requirements through the implementation of a cost effective, best value Casualty
Insurance program.
CONSIDERATIONS: Pursuant to Florida Statutes Section 768.28 and Chapter 440, the Risk
Management Division administers the risk management fund (Fund 516) to finance its Property, Casualty
program. Generally, the County’s deductible (self-insured retention) is $300,000 per occurrence. Claims
are administered by Johns Eastern Company. Insurance and Risk Management Services (IRMS) is the
County’s contracted broker of record for coverage.
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 liabili ty); to comply with
contractual requirements, including grants; or if a claims bill is enacted pursuant to chapter 768.28, Fla.
Statutes. The existing program expires on September 30, 2019.
For the FY 20 renewal, a Renewal Summary Sheet is attached which illustrates the pricing of each carrier
by line of coverage and the purpose/basis of each coverage. The significant highlights of the FY 2020
renewal are as follows.
1. Total premium for all coverage increased 17.46% or $127,322. This increase is due to the
following:
• Liability premiums increased 6.4% due to higher ratable exposures and a hardening
market
• Terrorism Liability coverage increased 87.37% because the current carrier refused to
renew under the expiring terms, requiring a change of carriers
• Cyber insurance increased 47.8% due to one large loss during the year and a
recommendation by staff to increase coverage limits from $5,000,000 to $10,000,000
in response to recent ransomware attacks on public entities
• Staff recommends the purchase of Active Shooter & Malicious Attack coverage
added as new coverage with annual cost of $55,000
• Statutory Accidental Death coverage increased 8.4% due to greater statutory benefit
levels enacted by the legislature effective July 1, 2019
2. The property insurance program renews on April 1, 2020 and is not included in this
recommendation.
3. Aviation, Flood and Workers’ Compensation Insurance is not included in this
recommendation and will be submitted separately.
All carriers hold a Best’s financial rating of “A, Superior” or higher.
FISCAL IMPACT: Estimated annual premiums are $856,464 as outlined in the Renewal Summary
Sheet. Sufficient funds have been budgeted within Fund 516, Property and Casualty Insurance and Fund
to purchase coverage.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
item.
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09/24/2019
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 insurance coverage as outlined in the Executive
Summary and the Renewal Summary Sheet effective October 1, 2019; rejection of Uninsured Motorist
Insurance except for scheduled take home vehicles, authorizing the County Manager or designee to
execute the necessary rejection forms; and to authorize the County Manager or designee to complete the
applications or other documents necessary to bind coverage and services effective October 1, 2019.
Prepared by: Carleton Case, Risk Finance Manager, Risk Management
ATTACHMENT(S)
1. FY 20 Collier Casualty Renewal Without Aviation and WC Summary (PDF)
2. IRMS Renewal Memo FY20 (PDF)
3. Active Shooter Brochure (PDF)
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09/24/2019
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.8
Doc ID: 9993
Item Summary: Recommendation to approve the purchase of Liability, Automobile and other
insurance coverage for FY 2020 in the estimated annual amount of $856,464.
Meeting Date: 09/24/2019
Prepared by:
Title: – Risk Management
Name: Carleton Case
08/29/2019 3:16 PM
Submitted by:
Title: Division Director - Risk Management – Risk Management
Name: Jeff Walker
08/29/2019 3:16 PM
Approved By:
Review:
Administrative Services Department Paula Brethauer Level 1 Division Reviewer Completed 08/30/2019 8:23 AM
Risk Management Jeff Walker Additional Reviewer Completed 09/01/2019 9:57 AM
Administrative Services Department Len Price Level 2 Division Administrator Review Completed 09/06/2019 3:24 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 09/10/2019 11:50 AM
Office of Management and Budget Laura Wells Additional Reviewer Completed 09/11/2019 2:38 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 3:02 PM
Board of County Commissioners MaryJo Brock Meeting Pending 09/24/2019 9:00 AM
16.E.8
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Collier County Government
FY 20 Casualty Insurance
Renewal Summary
FY 20 Premium and Limits
All Lines Aggregate $ 574,895 $ 611,978 6.45%
Limits Purchased:$5,000,000 General Liability $5,000,000 General Liability
$5,000,000 Auto Liability $5,000,000 Auto Liability
$5,000,000 Public Officials $5,000,000 Public Officials
$600,000 Workers Comp $600,000 Workers Comp
$1,000,000 Auto Physical $1,000,000 Auto Physical
Damage Replacement Damage Replacement
$1,000,000 Crime $1,000,000 Crime
Terrorism - Liability $ 14,500 $ 27,168 87.37%Underwriters at
Lloyds
$10,000,000 per occurrence/
$20,000,000 aggregate
$10,000,000 per occurrence/
$20,000,000 aggregate
Excess Crime (Employee
Dishonesty)
$ 9,197 $ 9,257 0.65%
Limits Purchased:$4,000,000 Employee $4,000,000 Employee
Dishonesty Dishonesty
$4,000,000 Computer $4,000,000 Computer
and Funds Transfer Fraud and Funds Transfer Fraud
$1,000,000 Faithful Performance $1,000,000 Faithful Performance
Active Shooter & Malicious Attack NA $ 55,000 NA $100,000 retention Underwriters at
Lloyds
First Party Coverage for Direct Physical Damage
Limits Purchased:$5,000,000 Third Party Coverage for Bodily Injury and Property
Damage resulting from Malicious Attack
Statutory Accidental Death $ 17,567 $ 19,045 8.41%
Limits Purchased:Statutory Statutory- Includes Statutory Changes
pertaining to Cancer Presumption
Pollution Liability $ 36,683 $ 36,683 0.00%
Limits Purchased:$2,000,000 each loss $2,000,000 each loss
$4,000,000 aggregate $4,000,000 aggregate
Excess crime layer providing coverage for employee
dishonesty, Faithful performance by public officials
and Computer and Funds Transfer Fraud.
None Hartford Insurance Death benefits provided to law enforcement officers
and extended to paramedic staff pursuant to FS
112.19.
$100,000 deductible per loss.Indian Harbor Liability and clean up coverage for the discharge of
pollutants from scheduled tanks, landfills and
vehicles to comply with FS 376.309- Financial
Responsibility Law.
Policy Type FY 19 Premium and Limits % Change FY 20 Deductibles and Notes
$1,000,000 retention Hanover Insurance
Purpose
$300,000 per occurrence for General
Liability, Automobile Liability and
Public Officials Liability; $100,000 for
Crime; $500,000 for Workers’
Compensation and $50,000 for Auto
Physical Damage
Princeton Excess
and Surplus
Primary coverage layer providing coverage for bodily
injury, property damage, professional acts,
employment practices, workers' compensation,
limited inverse condemnation/eminent domain, and
employee dishonesty/fidelity. FS 768.28, FS 440,
Federal Statutes.
$100,000 retention per occurrence.Terrorism is excluded from most policies. This
program covers liability arising out of acts of foreign
and domestic terrorism otherwise excluded.
Carrier/Vendor
Page 1
16.E.8.a
Packet Pg. 2149 Attachment: FY 20 Collier Casualty Renewal Without Aviation and WC Summary (9993 : Purchase of
Collier County Government
FY 20 Casualty Insurance
Renewal Summary
Maritime Employers Liability $ 15,000 $ 14,200 -5.33%
Limits Purchased:$1,000,000 $1,000,000
Excess Maritime Employers Liability $ 15,000 $ 14,700 -2.00%
Limits Purchased:$4,000,000 $4,000,000
Cyber Insurance $ 46,300 $ 68,433 47.80%
Limits Purchased:$5,000,000 $10,000,000- Recommended due to
recent increase in Cyber attacks on Public
Entities
Contingent Law Enforcement
Professional
$ 25,000 $ 25,000 0.00%
Limits Purchased:$3,100,000 Limit $3,100,000 Limit
$3,300,000 Aggregate $3,300,000 Aggregate
Total Fixed Costs 729,142$ 856,464$ 17.46%
None Florida Sheriff’s
Self-insurance
Fund
Coverage to protect the Board of Commissioners for
negligent acts arising out of the law enforcement
activities of the Sheriff pursuant to various Florida
Statutes, case law and Federal Statutes.
$1,000,000 American
Alternative
Insurance
$100,000 Indian Harbor Provides coverage for liability from a data breach;
defense costs; ransomware and
mitigation/compliance costs associated with a breach
response
$10,000 Liberty Mutual
Insurance
Company
Provides coverage for the liability arising out of the
operation of watercraft; injury to crew; and injury to
divers pursuant to the Jones Act 33 U.S.C. Sec. 901.
Page 2
16.E.8.a
Packet Pg. 2150 Attachment: FY 20 Collier Casualty Renewal Without Aviation and WC Summary (9993 : Purchase of
August 28, 2019
Mr. Jeff Walker, Director of Risk Management
Carleton Case, Risk Finance Manager
Collier County Government Risk Management Department
3311 Tamiami Trail East, #D
Naples, FL 34112
Client:Collier County Government Risk Management Department
Subject:October 1, 2019 Renewal
Dear Jeff and Carleton:
All Lines Aggregate – Princeton Excess & Surplus
1.Policy limits and SIR’s remain as expiring
2.Exposures have increased:
10/1/18 10/1/19
Payroll - +1.2%$149,003,445 $150,778,210
# Employees - +1.3%2,484 2,517
Vehicles - +10.5%1,122 1,240
Auto/Mobile Equipment Values - +12.7%$28,884,419 $32,551,565
Revenues/Expenditures - +2.7%$1,705,562,400 $1,751,631,900
Net Operating Expenses - +1.1%$823,207,144 $832,570,318
3.Premium is up 6.45%, from $574,895 to $611,978
Terrorism Liability – Underwriters at Lloyds (Hiscox)
1.The limit and retention remain the same as expiring.
2.Premium has increased from $14,500 expiring to $27,168.
3.It will be necessary to replace the current Lloyds carrier at renewal. When the current carrier
issued the 10/1/18 policy, they used a different form than what was originally quoted, which
contained exclusions that were unacceptable. We pursued a correction for quite some time and
did receive evidence that the carrier has agreed to eliminate the objectionable exclusions from
the policy but we still have yet to receive an endorsement to the policy. A copy of the
exclusions page from the current policy is attached along with a copy of the email confirming
that the carrier has agreed to amend the policy.
4.Higher limits are available.
5.Specimen form is attached for review.
16.E.8.b
Packet Pg. 2151 Attachment: IRMS Renewal Memo FY20 (9993 : Purchase of Liability, Automotive and Other Insurance FY2020)
Third Party Liability We will pay for damages and claim expenses for claims
alleging bodily injury or property damage resulting from an
act of terrorism or sabotage during the policy period at any
Insured location.
Consent to Settle Provision Included
Major Exclusions 1.Biological/Chemical Weapons
2.Electronic Loss
3.Fines or Penalties
4.Government Seizure
5.Harassment and Personal Injury
6.Pollution/Environmental
7.Threat or Hoax
8.Protests/Strikes/Civil Commotion
9.War
“Act or Terrorism or
Sabotage”
An act, subversive act, series of acts, or use of force or
violence by an person or group of persons, whether acting
alone or on behalf of or in connection with any
organization(s), committed for political, religious, or
ideological purposes, including the intention to influence any
government and/or to put the public or any sector of the
public in fear for such purposes.
Defense Costs Included Within the Policy Limits
Excess Crime – Hanover Insurance
1.The premium increased by less than 1%, from $9,197 to $9,257
Statutory AD&D – The Hartford
1.The premium has increased from $17,567 to $19,045.
2.The premium increase is due to an increase in the statutory benefits levels during the current
policy period.
10/1/18 10/1/19
In the Line of Duty Coverage $67,901 $75,000
Fresh Pursuit Coverage $67,901 $75,000
Unlawful and Intentional Death Coverage $198,670 $225,000
Maritime Employers Liability ($1,000,000 Primary) – Liberty Mutual Insurance
1.The premium has decreased by 5.33%, from $15,000 to $14,200.
2.The decrease is due to a reduction is estimated subject payroll, from $134,533 to $120,382.
Maritime Employers Liability ($4,000,000 Excess) – American Alternative Insurance
1.The premium has decreased by 2%, from $15,000 to $14,700.
16.E.8.b
Packet Pg. 2152 Attachment: IRMS Renewal Memo FY20 (9993 : Purchase of Liability, Automotive and Other Insurance FY2020)
Cyber Insurance – Indian Harbor
1.The limit remains at $5,000,000 and the retention at $25,000.
2.The premium has increased from $46,300 to $52,705, due to the claim that was paid during the
current policy period.
3.Optional limits are available:
a.$5,000,000 limit, $50,000 retention - $48,210 annual
b.$10,000,000 limit, $100,000 retention - $68,433 annual
c.$15,000,000 limit - pending
Option - Active Shooter and Malicious Attack Property and Liability – Underwriters at Lloyds
(Hiscox)
1.The limit is $5,000,000 and the retention at $100,000.
2.The premium is $55,000.
3.A specimen form is attached for review.
Malicious Attack at an Insured
Location
We will pay for the following loss you incur directly
resulting from a malicious attack that occurs during the
policy period at any Insured location.
1.Direct physical damage to or physical loss of covered
Property at the Insured location, including physical
damage caused by law enforcement or security forces
responding to the malicious attack
2.Business Interruption costs regardless of whether the
attack caused any physical loss or damage to covered
property
Third Party Liability We will pay for damages and claims expenses for claims
against you alleging bodily injury or property damage
resulting from a Malicious Attack at any Insured Location
Public Relations Costs Reasonable and necessary costs and expenses you incur
for a public relations consultant we contract to assist you
in responding to and managing the situation, including
media management
Major Exclusions 1.Biological/Chemical Weapons
2.Electronic Loss
3.Explosive Devices, other than an explosive device set
up by responding law enforcement
4.Fines or Penalties
5.Road Rage
6.Harassment and Personal Injury
7.Pollution/Environmental
8.Threat or Hoax
9.Protests/Strikes/Civil Commotion
10.War
16.E.8.b
Packet Pg. 2153 Attachment: IRMS Renewal Memo FY20 (9993 : Purchase of Liability, Automotive and Other Insurance FY2020)
“Malicious Attack”Any event that:
1.Involves the use of a firearm handheld weapon, or
moving vehicle, or the use of an explosive device in
conjunction with a firearm, handheld weapon or
moving vehicle
2.Is intended to harm another person or group of
persons, and
3.Is carried out or attempted by any person or group of
persons acting alone or on behalf of or in connection
with any organization
Defense Costs Included Within the Policy Limits
Sincerely,
William H. Kuhlman, CPCU, ARM-P
Vice President
Robert E. Thorngate, CPCU, ARM
Executive Vice President
IRMSinc.com | 239-649-1444 | 8950 Fontana Del Sol Way, Suite 200 | Naples, FL 34109
16.E.8.b
Packet Pg. 2154 Attachment: IRMS Renewal Memo FY20 (9993 : Purchase of Liability, Automotive and Other Insurance FY2020)
16.E.8.c
Packet Pg. 2155 Attachment: Active Shooter Brochure (9993 : Purchase of Liability, Automotive and Other Insurance FY2020)
16.E.8.c
Packet Pg. 2156 Attachment: Active Shooter Brochure (9993 : Purchase of Liability, Automotive and Other Insurance FY2020)