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Agenda Item 8BAGENDA ITEM # 8B SEPTEMBER 24, 2012 :, , AGENDA ITEM: Renewal of City Non - Benefit Insurance SUBMITTED BY: Susan Danhauser, Human Resources Director DATE: September 12, 2012 BACKGROUND: For the FY 2012 renewal, our recently appointed insurance broker Harden and Associates contacted the three major providers of insurance to FL governments: Florida League of Cities (FLC), Public Risk Management of Florida (PRM) and Preferred Governmental Insurance Trust (PGIT). Due to time constraints, only PGIT was able to submit a proposal within the timeline needed for review and approval for an October 1 effective date. Both FLC and PRM expressed interest in quoting for the 2013/2014 renewal when they would be able to devote adequate time to the proposal. All municipalities renew on 10/01; therefore the 3 carriers are extremely busy with the renewals for their current members. Typically the RFP process would start 90 -120 days prior to Oct. 1't. Since PGIT is the current carrier, they were able to give the City a renewal quote in 30 days. BUDGET: Based upon a renewal estimate provided by our previous agent in April, 2012, the proposed budget for 2012/2013 fiscal year was increased to $464,000 (includes brokerage commission). The actual renewal premium is $407,588 plus broker fee $45,000 for a total of $452,588 for a net budget reduction of $11,412. The reduced premium was due to an amended Mod Factor in Workers Comp coverage, updating the property schedules and through broker negotiation. In addition, there were some enhancements in coverage terms from the expiring policies. This renewal did not contain a premium for Pollution Liability insurance which was paid in FY 2011 as a three year premium saving $41,242 over annual premiums. Please note that additional funds may be required during the year for claim deductibles. RECOMMENDATIONS: 1. Approve renewal of insurance, effective October 1, 2012 through September 30, 2013 as indicated above and within Attachment 1. 2. Authorize City Manager to sign related insurance renewal documents. ATTACHMENTS: Summary Insurance Premiums Harden & Associates Comparative Analysis REVIEWED BY CITY MANAGER: AGENDA ITEM # 8B SEPTEMBER 24, 2012 INSURANCE RENEWAL PREMIUMS (2012/2013 Renewal TYPE 2012 ACTUAL APRIL EST. BUDGETED RENEWAL FINAL REVISED RENEWAL 09 -12 -2012 Automobile 37,258 39,000 35,341 Property 140,508 155,000 132,991 Liability - General 38,619 40,080 32,143 Liability - Police 25,000 26,720 21,724 Liability - PO & Emp Prac 22,500 24,750 32,168 Liability - Crime 1,375 1,450 1,237 Police Statutory AD &D Note 1 1,196 1,196 1,196 Workers' Compensation 139,737 170,000 145,174 Totals 406, 193 457,000 401,974 Commission Fees (included) (included) 45,000 406,193 457,000 446,974 12.5% Inc 10.0% Inc. Prior Yr. Environmental Note 2 n/a n/a n1a Fiduciary Insurance Note 3 6,508 7,000 5,614 Total Property & Casualty Premiums $412,701 $464,000 12.4% Inc. $452,588 9.7% Inc. Prior Yr. Notes: 1. Coverage through Hartford Life. 2. Three year premium paid in FY 2011 for FY 2011, FY 2012 and FY 2013. Three year policy premium was $62,033 per versus a per year premium of $34,425. 3. To be paid by Pension Board. AGENDA ITEM # 8B SEPTEMBER 24, 2012 r' a n , s Comparative Analysis for: Atlantic City of Brokerage /Consulting Services for Risk Management, Commercial Insurance, Employee Welfare, and Benefit Programs Comparative Analysis for: City of Atlantic Beach Premium and Exposure Summary A.M. Best Rating Admitted or Non Admitted Buildings & Contents Insured Value Inland Marine Total Insured Value Named Windstorm Per Occurrence N/A N/A 31,939,561 1,236,890 5% TIV Per Occurrence /Per Location for Named Storm subject to 20,000 minimum Page 2 AGENDA ITEM # 8B SEPTEMBER 24, 2012 N/A N/A 31,085,113 -3% 1,360,296 10% 5% TIV Per Occurrence /Per Location for Named Storm subject to 20,000 minimum All Other Perils Deductible: 1,000,000 Per Occurrence Buildings & Contents and Extensions 5,000 of Coverage Inland Marine Deductible - per occurrence 5,000 Property Premium $136,265.00 Inland Marine Premium $4,243A0 Employee Dishonesty, including Faithful Performance, Per Loss Deductible - any one occurrence Forgery or Alteration Deductible - anv one occurrence 250,000 5,000 100,000 1,000 5,000 5,000 Bodily Injury & Property Damage Limit 1,000,000 1,000,000 Combined Single Limit General Aggregate Limit 2,000,000 N/A Deductible - Per Occurrence 0 0 Bodily Injury & Property Damage Combined Per Occurrence 1,000,000 1,000,000 Aggregate Limit 2,000,000 N/A Deductible- Per Employee 0 0 Total General & Employee Benefits Liability $38,619.00 $32,143.00 -17% Premium Per Person 1,000,000 1,000,000 Per Occurrence 1,000,000 1,000,000 Deductible - Per Occurrence 0 0 Total Law Enforcement Livability Premium $25,000.00 $21,724.00 43% Comparative Analysis for: City of Atlantic Beach Premium u r Summary Page 3 AGENDA ITEM # 8B SEPTEMBER 24, 2012 Limit of Liability - Per Claim 1,000,000 1,000,000 Limit of Liability - Aggregate 1,000,000 1,000,000 Deductible - Each Claim 2,500 2,500 Limit of Liability - Per Claim 1,000,000 1,000,000 Limit of Liability - Aggregate 1,000,000 1,000,000 43% Bodily Injury & Property Damage Combined Single Limit - Total Any One Accident Personal Injury Protection Comprehensive /Collision Deductibles Hired /Borrowed Auto Liability Non -Owned Auto Liability (Excess Only) Hired Physical Damage 1,000,000 Statutory 1,000 / 1,000 Included Included 35,000 Limit 1,000 Deductible 1,000,000 Statutory 1,000 / 1,000 Included Included 35,000 Limit 1,000 Deductible Deductible - Each Claim 25,000 0 Accident Total Disability Benefit 100 100 subject to 80% of salary subject to 80% of salary Annual Premium " $1,196.00 $1,196.00 0% Gross Payroll 6,980,230 6,279,460 -10% Pending or Prior Proceeding Date 10/01/2011 1010/11 Continuity Date None None Full Prior Acts Coverage Full Prior Acts Coverage Aggregate Limit for all losses 2,000,000 2,000,000 Accidental Death Benefit - 187,396 187,396 unlawful & intentional death Accidental Death Benefit - 62,910 62,910 in fresh pursuit Accidental Death & Dismemberment Benefit - 62,910 62,910 In the line of duty Comparative Analysis for: City of Atlantic Beach Premium Summary Each Pollution Condition (exclusive of Legal 1,000,000 Expense) All Pollution Condition(s) (exclusive of Legal 1,000,000 Expense) Self- Insured Retention - each Pollution Condition $25,000 NOTE: P.G.I.T. will be appraising all property currently valued at 100,000 and higher. At time of finalization of appraisal, values will be adjusted accordingly or a Stated Value Endorsement (Applying an 80% Coinsurance Clause) will be applied with immediate effect. Conditions to Bind: (1) Completed and signed applications - PGIT Application - Initialed & Signed PGIT POUEPLI Application - Signed Uninsured /Underinsured Motorist Form - Signed Public Entity Signature Page (2) Written direction to bind (3) Payment in full or finance contract (4) Review and sign all schedules (5) Completed and signed PGIT, Drug Free and Safety Program applications (6) Payment in full or Signed Premium Finance Agreemant and downpayment by Page 4 AGENDA ITEM # 8B SEPTEMBER 24, 2012 Approval of premium, coverage, terms and conditions as contained herein: Signature Date PGIT Property program is a shared limit. The limits purchased are a per occurrence limit and in the event an occurrence exhausts the limit purchased by PGIT on behalf of the members, payment to you for a covered loss will be reduced pro -rata based on the amounts of covered loss by all members affected by the occurrence.