Agenda 09/22/2020 Item #16E13 (Purchasse Liability, Auto and other Insurance for FY21)09/22/2020
EXECUTIVE SUMMARY
Recommendation to approve the purchase of Liability, Automobile, and other insurance coverage
for FY21 in the estimated annual amount of $923,349.
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 Property Casualty 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. Assured Partners of Florida (Insurance and Risk
Management Services) 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 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, 2020.
For the FY 2021 renewal, a Renewal Summary 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 FY
2021 renewal are as follows.
• Total premium for all coverage lines increased 6.13% or $53,328. This increase is due primarily to an
increase in ratable exposures as reported in the application to the Underwriters and an overall
hardening of the market in the Pollution, Cyber and Crime insurance lines of coverage.
• The Property Insurance program renews on April 1, 2021 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.
FISCAL IMPACT: Estimated annual premiums are $923,349 as outlined in the Renewal Summary
Sheet. Enough funds have been budgeted within Fund 516, Property and Casualty Insurance 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, is approved as to
form and legality, and requires majority vote for approval. -JAK
RECOMMENDATION: To approve the following:
1) The purchase of insurance coverage as outlined in the Executive Summary and the Renewal
Summary Sheet effective October 1, 2020, including authorization to purchase the three-year pre -paid
option for Pollution Insurance.
2) The rejection of Uninsured Motorist Insurance except for scheduled take home vehicles,
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09/22/2020
authorizing the County Manager or designee to execute the necessary rejection forms.
3) Authorization of the County Manager or designee to complete the applications or other documents
necessary to bind coverage and services effective October 1, 2020.
Prepared by: Carleton Case, Manager, Risk Finance
ATTACHMENT(S)
1. Casualty Back Up Summary (PDF)
2. FY21 Revised Casualty Renewal Summary (PDF)
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16.E.13
09/22/2020
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.13
Doe ID: 13433
Item Summary: Recommendation to approve the purchase of Liability, Automobile, and other
Insurance coverage for FY21 in the estimated annual amount of $923,349.
Meeting Date: 09/22/2020
Prepared by:
Title: — Risk Management
Name: Carleton Case
09/01/2020 4:34 PM
Submitted by:
Title: Division Director - Risk Management — Risk Management
Name: Jeff Walker
09/01/2020 4:34 PM
Approved By:
Review:
Risk Management
Administrative Services Department
Administrative Services Department
Office of Management and Budget
County Attorney's Office
Office of Management and Budget
County Manager's Office
Board of County Commissioners
Jeff Walker
Additional Reviewer
Paula Brethauer
Level 1 Department Reviewer
Len Price
Level 2 Department Head Review
Debra Windsor
Level 3 OMB Gatekeeper Review
Jeffrey A. Klatzkow Level 3 County Attorney's Office Review
Laura Wells
Additional Reviewer
Nick Casalanguida Level 4 County Manager Review
MaryJo Brock
Meeting Pending
Completed
09/01/2020 5:08 PM
Completed
09/02/2020 10:45 AM
Completed
09/08/2020 4:01 PM
Completed
09/09/2020 8:27 AM
Completed
09/09/2020 12:49 PM
Completed
09/09/2020 3:41 PM
Completed
09/16/2020 8:40 AM
09/22/2020 9:00 AM
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16.E.13.a
11RIMISO
Insurance and Risk
Management Services, Inc®
An AssuredPartners Agency
August 31, 2020
Mr. Jeff Walker, Director of Risk Management
Mr. Carleton Case, Risk Finance Manager
Collier County Government Risk Management Department
3311 Tamiami Trail East, #D
Naples, FL 34112
Client: Collier County Government
Subject: October 1, 2020 Casualty Renewal Summary
Policy Type: Package, Terrorism, Active Shooter, Excess Crime, Statutory AD&D, Maritime
Employer's Liability (Primary), Maritime Employer's Liability (Excess),
Pollution Liability and Cyber Liability
Company: Various
Policv Term: 10/01/20 to 10/01/21
To summarize the renewal of the 10/1/20 Casualty insurance:
All Lines Aggregate — Princeton Excess & Surplus Lines
1. Policy limits and SIR's remain as expiring as shown in the renewal spreadsheet.
2. Exposures have increased:
10/1/19
10/1/20
Payroll: +1.7%
$150,778,210
$153,308,009
# Employees: +4.3%
2,382
2,484
Vehicles: -2.4%
1,240
1,211
Auto/Mobile Equipment Values: +6.7%
$29,682,565
$31,686,994
(Includes 4 new
ambulances)
Revenues/Expenditures: +17.6%
$1,751,631,900
$2,059,994,300
Net Operating Expenses: +12.0%
$832,570,318
$932,494,095
3. Rate has increased by 2%. From the underwriter — this is an extremely good result in the current
market. Most quotes this year have been +10% to +30%.
4. With the combination of the rate increase and the exposure increases, the premium is up 5.2%, from
$602,545 to $633,956.
5. Pricing and terms contemplate the operation of the new Collier County Sports Complex and the Big
Corkscrew Island Regional Park during the policy period.
6. The limit of liability for drones has been increased from $1,000,000 to $2,000,000 and the recently
acquired 2nd drone is included for coverage.
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16.E.13.a
7. Under the Auto Physical Damage coverage, the automatic acquisition limit has been increased from
$250,000 to $500,000.
8. The carrier has agreed not to include a Communicable Disease exclusion on the 10/1/20 policy.
In the wake of the pandemic, many carriers are adding this exclusion.
Option for consideration:
1. Increase the Public Officials Liability Limit from $5,000,000 to $7,500,000. Additional annual
premium $26,086.
Additional Information that will be required.
1. Drone coverage is subject to review of a completed Drone Supplemental and confirmation that
operations are in compliance with FAA Rule 107.
2. Coverage on the new parks is subject to receipt and review of acceptable risk management
guidelines & loss control information on the Sports Complex climbing wall and the Big Corkscrew
water slide.
Terrorism Liability — Underwriters at Lloyds (Hiscox)
1. The limit will continue to be $10,000,000 Each Claim, $20,000,000 Aggregate and the retention
$100,000.
2. Per Occurrence Aggregate Limit is $25,000,000 (combined with Active Shooter Liability)
3. Premium has decreased from $27,168 to $26,245.
Active Shooter and Malicious Attack Property and Liability — Underwriters at Lloyds (Hiscox)
1. The limit will continue to be $5,000,000 and the retention $100,000.
2. Per Occurrence Aggregate Limit is $25,000,000 (combined with Terrorism Liability)
3. The premium is decreased from $55,000 to $53,130.
Excess Crime — Hanover Insurance
1. The limit is $4,000,000 excess of $1,000,000 underlying. The Faithful Performance limit is
$1,000,000 excess of $1,000,000 underlying.
2. The premium increased by 11%, from $9,257 to $10,276.
3. The increase is due to the market conditions.
Option for consideration:
1. Increase the limit from $4,000,000 to $5,000,000. Additional annual premium $1,380.
Statutory Accidental Death &Disability — The Hartford
1. The Statutory limits will continue as expiring.
2. The premium is decreased from $19,045 to $18,428.
Maritime Employers Liability (Primary) — Atlantic Specialty Insurance
1. The previous carrier, Liberty Mutual, declined to offer renewal. Coverage will be replaced by
Atlantic Specialty Insurance.
2. The primary limit will continue to be $1,000,000.
3. The premium will be $13,905.00, a reduction of 2%.
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16.E.13.a
Maritime Employers Liability (Excess) — American Alternative Insurance
1. The excess limit will continue to be $4,000,000 excess of the $1,000,000 underlying limit.
2. The premium has increased by 16% from $14,700 to $17,031.
Pollution Liability — Indian Harbor
1. The limits will continue to be $2,000,000 Each Pollution Condition, $8,000,000 Aggregate and the
Self -Insured Retention will again be $100,000 Each Pollution Condition.
2. Indian Harbor is again offering a 3-year prepaid premium for the period 10/1/20 to 10/1/23.
3. The 3-year prepaid premium will be $148,134.00, an increase of 9.5%. The annual premium
allocation will be $49,378.
4. Mold Coverage has been increased to $500,000 Each Pollution Condition, $1,000,000 Aggregate.
Option for consideration:
1. Increase the Self -Insured Retention from $100,000 to $250,000. Three -Year premium savings
$27,427.
2. Increase the limits to $3,000,000 Each Pollution Condition, $8,000,000 Aggregate. Three Year
additional premium $26,817.
Cyber Insurance — Indian Harbor
1. The limit will continue to be $10,000,000 Annual Aggregate and the Retention $100,000.
2. The annual premium has increased from $58,000 to $76,000. The increase is due to the hardening
of the Cyber insurance market.
3. The Social Engineering Limit has been reduced from $500,000 to $250,000.
Option for consideration:
1. Increase the Retention from $100,000 to $200,000. Annual premium savings $12,100.
Sincerely,
Bill
William H. Kuhlman, CPCU, ARM-P
Vice President
M
Robert E. Thorngate, CPCU, ARM
Senior Account Executive
AAssuredPartners
IRMS
IRMSinc.com 1239-649-1444 18950 Fontana Del Sol Way, Suite 200 1 Naples, FL 34109
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