Submitted By: Richard Dennis
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Presentation By: Richard Dennis
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Department: Human Resources and Risk Management
FORMAL TITLE:
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Renew property, casualty, liability, and workers' compensation insurance policies for Fiscal Year 2026-27 and authorize the Human Resources/Risk Management Director to execute the corresponding insurance policy applications with a projected expenditure of $2,566,079
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
NA
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BACKGROUND:
The Human Resources and Risk Management Department works with its insurance broker, Brown and Brown, to solicit premium renewals for the City's property, general liability, automobile, workers' compensation, and other miscellaneous excess employer insurance policies, as listed below and on the attached spreadsheet. The broker negotiates with our current carriers and evaluates other competitive carriers. Brown and Brown has reviewed alternative competitive policies, and the most cost-effective and comprehensive policies are recommended for purchase. Rates and premiums are compared with similar cities and counties in Florida to ensure we receive the most competitive rates available.
FINDINGS AND CONCLUSIONS:
The following agreements and/or renewals are for policies set to expire on September 30, 2026, and are recommendations for the Fiscal Year 2026-27 renewal.
Property
Carrier: Preferred Government Insurance Trust (PGIT) | Premium: $1,293,103. This policy protects physical and permanent structures, as well as their associated indoor and outdoor contents. Claims are paid out at the agreed-upon value (replacement cost minus $25,000 deductible). The current premium represents a $47,521 reduction (3.54%) from the previous year’s premium of $1,340,624.
Inland Marine
Carrier: Preferred Government Insurance Trust (PGIT) | Premium: $32,488. This policy provides physical damage coverage for mobile equipment (e.g., a backhoe) valued at over $25,000 (with a $25,000 deductible). The current premium represents a $966 reduction (2.89%) from the previous year’s premium of $33,454.
Crime
Carrier: Travelers Casualty & Surety | Premium: $6,419. This policy provides $1,000,000 (with a $10,000 deductible) in coverage for employee dishonesty, theft, disappearance, and destruction; $250,000 (with a $5,000 deductible) in coverage for funds transfer, computer fraud; $100,000 (with a $1,000 deductible) for forgery/alterations; and $250,000 (with a $10,000 deductible) for social engineering. The premium remains unchanged from the previous year at $6,419.
General Liability
Carrier: Preferred Government Insurance Trust (PGIT) | Premium: $151,349. This policy provides $1,000,000 in coverage (with a $200,000/$300,000 deductible) for general liability and law enforcement liability. Premium is based on the City's payroll. The current premium represents a $7,287 increase (5.06%) from the previous year’s premium of $144,062, primarily due to increased payroll.
Automobile
Carrier: Preferred Government Insurance Trust (PGIT) | Premium: $199,102. This policy provides physical damage coverage for vehicles valued at over $100,000 (with a $25,000 deductible). Fire apparatus is covered at an agreed value (purchase price), and all others are covered at the actual cash value at the time of loss (depreciated value). The current premium represents a $4,219 reduction (2.08%) from the previous year’s premium of $203,321.
Public Officials' Liability
Carrier: Preferred Government Insurance Trust (PGIT) | Premium: $172,398. This policy provides coverage for Public Officials Liability and Employment Practices Liability, with a limit of $1,000,000 ($200,000 self-insured retention). The current premium represents a $30,365 reduction (14.98%) from the previous year’s premium of $202,763.
Cyber Liability
Carrier: Preferred Government Insurance Trust (PGIT) | Premium: $24,589. This policy provides coverage for cyber incident response teams, business interruption loss, contingent business interruption loss, digital data recovery, network extortion, and cyber, privacy, and network security liability. The current premium represents a slight increase of $537 (2.23%) from the previous year’s premium of $24,052.
Excess Workers' Compensation
Carrier: Preferred Government Insurance Trust (PGIT) | Premium: $606,741. This policy provides a statutory limit (with a $500,000 deductible) in coverage for workers' compensation claims and a $1,000,000 limit (with a $500,000 deductible) for employer’s liability. Premium is based on the City's estimated payroll. The current premium represents a $36,337 increase (6.37%) from the previous year’s premium of $570,404, primarily due to increased payroll.
Pollution Liability
Carrier: Indian Harbor | Premium: $0 (two-year premium). The policy provides $1,000,000/$10,000,000 coverage (with a $100,000 deductible) for pollution exposure and remediation costs. There is no premium due this year because the premium was paid last year under a guaranteed two-year rate.
Fiduciary Liability
Carrier: Travelers Casualty & Surety | Premium: $16,261. This policy provides a $1,000,000 coverage limit per Pension Board, with a $5,000 deductible per Board. The premium remains unchanged from the previous year at $16,261.
AD&D
Carrier: Ace American Insurance Company | Premium: $30,751, two-year policy October 1, 2026, to October 1, 2028. This policy provides for the accidental death and disability benefits required by Florida Statutes 112.18 and 112.19. The current premium represents a $6,676 increase (27.73%) from the previous premium of $24,075.
Aviation Liability
Carrier: Global Aerospace | Premium: $3,028. This policy provides a limit of $5,000,000 for premises liability coverage and Hangar Keepers Aircraft coverage of $1,000,000/$2,000,000 (with a $1,000 Deductible). The current premium represents a slight increase of $167 (5.84%) from the previous year’s premium of $2,861.
Firefighter Cancer Benefit
Carrier: ACE American Insurance Company | Premium: $29,851. This policy provides for the lump-sum payout and death benefits required by Florida Statute 112.1816. The current premium represents an increase of $2,272 (8.24%) from the previous year’s premium of $27,579.
Staff recommends approval.
FISCAL IMPACT:
Funds are included in the Fiscal Year 2026-27 budget in accounts 628-099-999-590-81-45010 and 626-099-999-590-81-45010 for a total projected premium of $2,566,079. This represents an overall reduction of $76,889, or approximately 2.9%, from the previous year’s premium of $2,642,968.
PROCUREMENT REVIEW:
These services were procured through the City’s broker, Brown & Brown, in compliance with the City’s procurement policy.
LEGAL REVIEW:
The resulting policy renewals will be reviewed and approved for form and legality by the City Attorney, William Sexton.
ALTERNATIVE:
• Have the broker seek additional quotes.