09-23-19 Meeting Agenda Item#8.B.
23 Sep 2019
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Renewal of Liability and Workers'Compensation Insurance
SUBMI 1-I ED BY: Cathy Varian,Esq.,Director of Human Resources
DATE: September 10,2019
BACKGROUND: This year,Harden and Associates, our insurance broker,submitted RFPs to both Trusts
that provide liability and workers' compensation coverage to municipalities:
Preferred Governmental Insurance Trust- PGIT (incumbent carrier for
Property/Crime/General Liability/Law Enforcement Liability/Public Officials &
Employment Practices Liability/Auto) &Florida Municipal Insurance Trust FMIT
(incumbent carrier for Workers Compensation)for all lines of coverage handled by
the Trusts. Both PGIT and FMIT provided very competitive options.
The City would like to move forward with PGIT,including the Workers
Compensation coverage. As relates to the lines of insurance coverage written by
the Trusts,this represents a 23.4%reduction($125,250)in premium from the
expiring policies. A summary of the key PGIT advantages are as follows:
➢ PGIT offered a 2 year rate guarantee for all lines of coverage on very
aggressive premium options;
➢ PGIT provides full prior acts coverage for Public Officials&Employment
Practices Liability coverage. Moving that coverage to FMIT would only
provide prior acts coverage going back to 10/1/2015,thus creating a gap in
coverage for claims prior to 10/1/15;
> City has enjoyed great working relationship with PGIT claims and loss control
resources;
➢ PGIT program now provides$1,000,000 of Deadly Weapons Protection
including sub-limits of coverage for Crisis Management,Counseling Services,
Funeral Expenses.
> Other notable developments include
o Note:Environmental Liability insurance is coming off of a 3 year
program whose premium was prepaid in the FY 10/1/16-17. The
premium outlined is again for a 3 year term and the 3 year policy
premium of$50,688.16 will be prepaid in the FY 10/1/19-20.
o City's Workers Compensation Experience Modification Factor dropped
from a 1.24 to a 1.08
o Flood policies renew on 11/1 and the premiums have not yet been
released. Estimate a 10%increase on the current premiums of$10,170
BUDGET: This represents a 23.4%reduction($125,250)in premiums from last year(excluding
flood)and a 30.7%reduction in what was budgeted for this year's premiums(again,
excluding flood insurance premiums of approximately$11,000).
S
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Agenda Item#8.B.
23 Sep 2019
•
RECOMMENDATIONS:
1. Approve renewal of all liability insurances and workers'compensation insurance with Preferred
Governmental Insurance Trust for 2019-2020.and authorize the City Manager to sign all related
renewal documents.
ATTACHMENT: Resolution No. 19-55
REVIEWED BY CITY MANAGER: u� ..� is
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Agenda Item#8.B.
23 Sep 2019
RESOLUTION NO.19-55
A RESOLUTION OF THE CITY OF ATLANTIC BEACH, FLORIDA,
APPROVING RENEWAL OF ALL LIABILITY INSURANCES AND
WORKERS' COMPENSATION INSURANCE WITH PREFERRED
GOVERNMENTAL INSURANCE TRUST FOR 2019-2020, AND
AUTHORIZING THE CITY MANAGER TO EXECUTE THE
MEMORANDUM OF UNDERSTANDING.
WHEREAS,the City of Atlantic Beach currently has a contract in place with the Preferred
Governmental Insurance Trust(PGIT)for general liability insurances;and
WHEREAS,the City of Atlantic Beach currently has a contract in place with the Florida
Municipal Insurance Trust(FMIT)for workers' compensation insurance;and
WHEREAS,the City's insurance broker,Harden and Associates,submitted RFP's to both
Trusts for all lines general liability and workers'compensation insurances;and
WHEREAS,both Trusts responded with very competitive options;and
WHEREAS,the option provided by PGIT for all lines is preferable to the City for several
reasons,including the two-year rate guarantee,the fact that PGIT provides full prior acts coverage
for Public Officials and Employment Practices Liability coverage and the PGIT program now
provides $1,000,000 of Deadly Weapons Protection including sub-limits'of coverage for Crisis
Management,Counseling Services and Funeral Expenses;
WHEREAS,this option represents a 23.4%reduction($125,250)in premiums from last
year(excluding flood insurance,which is still pending,but is expected to increase 10%for a total
premium of about$11,000),and a 30.7%reduction($181,250)in what was budgeted for this year's
premiums(again,excluding flood);
NOW THEREFORE,be it resolved by the City Commission of the City of Atlantic Beach
as follows:
SECTION 1. The City Commission hereby approves renewal of all lines of liability
insurances and workers' compensation insurance with Preferred Governmental Insurance Trust;
SECTION 2. The City Commission hereby authorizes the City Manager to sign all related
renewal document.
PASSED AND ADOPTED by the City of Atlantic Beach,this 23rd day of September,
2019.
Ellen Glasser,Mayor
Attest:
Approved as to form and correctness:
Donna L.Bartle,City Clerk
Brenna M.Durden,City Attorney
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