|Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - September 27, 2016|
Agenda Item #12
Purchase of Excess Workers' Compensation and Excess Liability Insurance
Contact and/or Presenter Information
Mitchell Palmer, County Attorney, ext. 3750.
Motion to approve the purchase of Excess Workers’ Compensation and Excess Liability insurance in an amount not to exceed $462,982, plus Terrorism Fees of $3,050 for a total premium of $466,032; which is Option 1 of the attached proposal from First Florida Insurance Brokers, and to approve the County Attorney's or his designee's execution all required documents.
The Board of County Commissioners of 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 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, 2016, 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 self-insured retention. The public officials, or employment practices, limit per the expiring program is $1 million per occurrence and $2 million aggregate, with a $500,000 self-insured retention. The workers’ compensation portion of the expiring program has a $750,000 self-insured retention. 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 keeps all key terms per the expiring program, but with a 1.34% reduction in premium as compared with the expiring program. Option 2 increased the liability limit to $5 million per occurrence and $10 million aggregate.
The Risk Management Division recommends Option 1 of the attached proposal from First Florida Insurance Brokers. 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 Linda Klasing, Risk Manager - email@example.com
Cost and Funds Source Account Number and Name
$466,032 Fund 5050001500 Risk Management General Liability
Amount and Frequency of Recurring Costs
$466,032 One Time Payment
Attachment: MCBOCC 16-17 Excess WC-Liability Proposal Revised 08.04.16.pdf