Item 8B AGENDA ITEM # 8B
SEPTEMBER 13, 2010
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Renewal of City Non - Benefit Insurance
SUBMITTED BY: George Foster, Human Resource Manager
DATE: September 7, 2010
BACKGROUND: We have finalized the renewal for our non - benefit insurance for October 1, 2010
thru September 30, 2011 as indicated within attachment 1 with the overall
premiums $143,520 less than the proposed budget amount. The primary reasons
for this reduction are the current competitive market environment and the City's
favorable claims experience.
This year we contacted the two major providers of insurance to governments (the
Florida League of Cities (FLC) and the Public Risk Insurance Agency (PRIA))
with both submitting proposals. After evaluation, we are recommending that
insurance be retained through our current carrier - PRIA.
BUDGET: Based upon an estimate of premiums required, the 2010/2011 proposed budget
was increased by 3.36% to $564,078 with a renewal premium of $420,558 for a
net budget reduction of $143,520. This renewal contains a three year premium
for Pollution Liability insurance at $20,678 /year as opposed to $34,425 if paid
annually.
The FY10 /11 budget has been adjusted (reduced) for these premiums; however,
additional funds may be required during the year for claim deductibles.
RECOMMENDATIONS:
1. Approve renewal of insurance, effective October 1, 2010 through September
30, 2011 with PRIA as indicated above and within Attachment 1.
2. Approve renewal of Pollution Liability insurance at a three year premium of
$62,033 ($20,678 annual) as opposed to one year premium of $34,425.
3. Authorize City Manager to sign related insurance renewal documents.
ATTACHMENTS: Summary Insurance Premiums
REVIEWED BY CITY MAN
AGENDA ITEM # 8B
SEPTEMBER 13, 2010
INSURANCE RENEWAL PREMIUMS
(2010 Renewal is through PRIA)
ACTUAL PREMIUMS
Type 2005 2006 2007 2008 2009 2010
Automobile 78,381 75,025 73,428 71,830 73,019 35,000
Property 134,761 230,369 211,173 164,525 158,460 133,799
Liability - General 39,552 43,904 39,513 43,483 50,269 36,000
Liability - Police 24,998 24,998 26,100 27,416 27,405 25,000
Liability - PO & Emp Prac 19,559 20,591 24,291 28,659 25,870 22,000
Liability - Crime 1,223 1,211 1,211 1,211 1,211 1,237
Police Statutory Note 1 1,046 1,046 1,178 1,196 1,196 1,196
Environmental Note 2 30,377 30,377 17,386 17,386 17,386 20,678
Workers' Compensation 269,496 286,345 213,680 213,648 187,763 139,764
Totals 603,648 718,386 611,703 573,320 546,755 414,674
Difference to City +114,738 - 106,683 - 38,383 - 26,565 - 132,081
+1 9.01% - 14.85% -6.27% -4.63% - 24.16%
Fiduciary Insurance Note 3 4,255 4,520 3,743 3,966 4,176 5,884
Notes 1. To be awarded to current carrier, L.B. Bryan and Company with Hartford Life.
2. Three year policy cost of $62,033 /year vrs one year policy cost of $34,425 /year.
3. Liability coverage increased over prior years. To be paid by Pension Board.