Agenda Item 8DAGENDA ITEM # 8D
SEPTEMBER 9, 2013
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Renewal of City Property and Casualty Insurance (Non - Benefit Insurance)
SUBMITTED BY: Susan Danhauser, Human Resources Director
DATE: August 16, 2013
BACKGROUND: Harden & Associates marketed all lines of coverage with a focus on securing the best options
for the City. With regards to the major lines of coverage, there are two primary trusts for
public entities: Florida League of Cities (FMIT) and Preferred Governmental Insurance
Trust (PGIT). Both were engaged in a fair bidding process to allow each of the Trusts to
provide their most competitive offers.
BUDGET:
The premium for all property & casualty coverage for fiscal year 2013/2014 is $429,990 plus
broker fee $45,000 for a total of $474,990. This represents a decrease from last year of
$41,590 and $33,918 under the estimated renewal included in the budget. (For comparative
purposes, the premium for the pollution policy was added to last year's total expense
number.) The premium reduction is due to updating the property schedules, moving the
workers compensation coverage to FMIT and re- bidding the pollution policy. Additional
flood coverage is included this year due to the updated FEMA mapping for flood zones.
Those flood zone updates included some essential locations for the City's operation where
additional coverage was deemed appropriate. The pollution policy, which has a three year
term, also was up for renewal this year and the City saved $14,000 on this policy. In
addition, there were other enhancements in coverage on the renewal coverages with PGIT.
Please note that additional funds may be required during the year for claim deductibles.
RECOMMENDATIONS:
1. Approve renewal of insurance, effective October 1, 2013 through September 30, 2014
as indicated above and within Attachment 1.
2. Authorize City Manager to sign related insurance renewal documents.
ATTACHMENTS: Summary Insurance Premiums
REVIEWED BY CITY MANAGER:
AGENDA ITEM It 8D
SEPTEMBER 9, 2013
INSURANCE RENEWAL PREMIUMS
(2013/2014 Renewal)
TYPE
2012/2013
ACTUAL
2013/2014
Estimate
Budgeted
Renewal
FINAL REVISED
RENEWAL
2013/2014
CARRIER
Automobile
$ 35,431
$ 38,500
$ 36,007
PGIT
Property
140,508
105,021
121,945
PGIT
Liability - General
32,143
35,000
31,094
PGIT
Liability - Police
21,724
23,500
21,718
PGIT
Liability - PO & Emp Prac
32,168
35,000
32,873
PGIT
Liability - Crime
1,237
1,350
1,237
PGIT
Police Statutory AD &D
1,046
1,100
1,007
Federal Ins Co.
Workers' Compensation
139,727
153,837
117,608
FMIT
Environmental Note 1
62,033
64,500
48,542
Illinois Union Ins Co.
Totals
466,017
45 7, 808
412,031
Broker Fees
45,000
45,000
45,000
$ 511,017
$ 502,808
$ 457,031
Flood Insurance - New policy *
12,129
Nat'l Flood Ins.
Fiduciary Insurance Note 2
5,563
6,100
5,830
Hudson Ins. Co.
Total Property & Casualty
Premiums
$ 516,580
$ 508,908
$ 474,990
Notes:
*The City will receive back $2,668 for the built in commission fees for the flood coverage.
Flood coverage has a 30 day waiting period after receipt of payment of premiums.
1. Three year premium paid in FY 2011 was $62,033. Renewal estimate $64,500 (included in total
for comparison). 3 year policy through Illinois Union Ins. Co. $48,542
2. To be paid by Pension Board.