|Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - September 9, 2014|
Agenda Item #15
Purchase of Excess Workers Compensation and Liability Insurance
Contact and/or Presenter Information
Raymond Carter, County Attorney's Office Risk Management Division, 941-745-3750, ext 3782.
Motion to approve the purchase of Excess Workers’ Compensation and Liability insurance in the amount not to exceed $469,423, plus Terrorism fees and Federal/State mandated fees of $8,412.08 for a total premium of $477,835.08, which is Option 1 of the attached proposal from First Florida Insurance Brokers; and to authorize the County Attorney or his designee to execute all required documents.
The Board of County Commissioners of Manatee County purchases Excess Workers’ Compensation and Liability insurance to protect the County from catastrophic financial loss. Pursuant to Section 768.28, Florida Statutes and Chapter 440, Florida Statutes, the Risk Management Division administers the risk management fund 505 to finance its Property, Casualty and Workers’ Compensation risk financing programs. The Property insurance program is renewed each year on June 1st and is not included in this agenda item.
To ensure sufficient coverage limits, the County purchases excess coverage, necessary to protect against large losses; to provide higher limits as may be required by contract; or to cover a claims bill pursuant to Section 768.28, Florida Statutes. The current program expires on October 1, 2014, and contains the following provisions: The liability total loss limit per expiring program is $2million per occurrence and $4million aggregate, with a $500,000 deductible. The public officials, or employment practices, limit per the expiring program is $1million per occurrence and $2million aggregate, with a $500,000 deductible. The workers compensation portion of the expiring program has a $750,000 deductible. The County self administers the auto and general liability claims, and Commercial Risk Management administers workers compensation claims.
Two renewal options were presented. Option 1 kept all key terms per the expiring program. Option 2 lowered the Public Officials liability deductible from $500,000 to $400,000. Due to no history of claims breaching this deductible, the Risk Management Division recommends not increasing premiums to lower this deductible.
The Risk Management Division recommends a motion to approve the purchase of Excess Workers’ Compensation and Liability insurance in an amount of $469,423, plus Terrorism and Federal/State mandated fees of $8,412.08 for a total premium in the amount of $477,835.08; which is Option 1 of the attached proposal from First Florida Insurance Brokers and to approve the County Attorney or his designee executing all required documents. All coverage’s are subject to the terms, conditions, endorsements, and exclusions of the policy. Limits and Self Insured Retentions as proposed are in line with those in place for like sized counties in the State of Florida.
County Attorney Review
Not Reviewed (No apparent legal issues)
Explanation of Other
Instructions to Board Records
Please return a stamped copy of the Agenda Memorandum certifying its approval by the Board of County Commissioners to Raymond Carter-County Attorney's Office (email@example.com).
Cost and Funds Source Account Number and Name
$477,835.08 Risk Management Funds 5050001300 Workers' Compensation, 5050001400 Auto Liabilty and 5050001500 General Liability
Amount and Frequency of Recurring Costs
$477,835.08 One Time Payment
Attachment: MCBOCC- XS Liability Proposal 14-15.pdf