|Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - August 25, 2015|
Agenda Item #11
Excess Liability and Excess Workers' Compensation Insurance Renewal
Contact and/or Presenter Information
Mitchell O. Palmer, County Attorney, extension 3750
Motion to approve the purchase of Excess Liability and Excess Workers’ Compensation insurance in an amount not to exceed $467,750, plus Terrorism fees of $4,600 for a total premium of $472,350; 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.
The Board of County Commissioners of Manatee County purchases Excess Workers’ Compensation and Excess 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 required by contract; or to cover a claims bill pursuant to Section 768.28, Florida Statutes. The current program expires on October 1, 2015, and contains the following provisions: The liability total loss limit per expiring program is $2 million per occurrence and $4 million aggregate, with a $500,000 deductible. The public officials, or employment practices, limit per the expiring program is $1 million per occurrence and $2 million 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 as noted above with a -1.15% overall reduction from last year’s premium or -$5,485.08 (-3.64% reduction in our liability premium and a 4.28% increase in our workers’ compensation premium.). Option 2 increased the liability limit to $5 million per occurrence and $10 million aggregate with a 15.31% increase or $73,314.92.
The Risk Management Division recommends a motion to approve the purchase of Excess Workers’ Compensation and Excess Liability insurance in an amount of $467,750, plus Terrorism fees of $4,600 for a total premium in the amount of $472,350; 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 coverages 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
Other (Requires explanation in field below)
Explanation of Other
This is a County Attorney item.
Instructions to Board Records
Please return a stamped copy of this agenda memorandum, certifying its approval by the Board of County Commissioners, to Mitchell Palmer – Manatee County Attorney’s Office – firstname.lastname@example.org
Cost and Funds Source Account Number and Name
$472,350 Risk Management Funds 5050001300 Workers’ Compensation, 5050001400 Auto Liability, and 5050001500 General Liability
Amount and Frequency of Recurring Costs
$472,350 One Time Payment
Attachment: MCBOCC- Excess WC-Liability Proposal 15-16 revised 8.10.15.pdf