Agenda Item 8BAGENDA ITEM # 8B
SEPTEMBER 24, 2012
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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
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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
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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
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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.