Submitted By: Richard Dennis
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Presentation By: Devan Kikendall
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Department: Human Resources and Risk Management
STAFF RECOMMENDATION (Motion Ready):
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Approve the Fiscal Year 2024-25 property, casualty, liability, and workers' compensation insurance premiums and authorize the Human Resources/Risk Management Director to execute the corresponding insurance policy applications with a projected expenditure of $2,469,556
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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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 insurances as shown below and on the attached spreadsheet. Our 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. Our 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 the policies set to expire on 9/30/2024 and are the recommendations for renewal for Fiscal Year 2024-25.
Property
Carrier: Preferred Government Insurance Trust (PGIT) | Premium: $1,394,698. This policy provides protection for physical and permanent structures and their associated indoor and outdoor contents within 1,000 feet. Claims are paid out on an agreed value (replacement cost - $25,000 self-insured retention (SIR)).
Inland Marine
Carrier: Preferred Government Insurance Trust (PGIT) | Premium: $32,910. This policy provides physical damage coverage for mobile equipment (e.g., backhoe) valued at over $25,000 ($25,000 SIR) that is paid out on an agreed value (purchase price).
Crime
Carrier: Travelers Casualty & Surety | Premium: $6,419. This policy provides $1,000,000 ($10,000 deductible) in coverage for employee dishonesty, theft, disappearance, and destruction; $100,000 ($1,000 SIR) for funds transfer, computer fraud, and forgery/alterations; and $250,000 ($10,000 deductible) for social engineering.
General Liability
Carrier: Preferred Government Insurance Trust (PGIT) | Premium: $133,681. This policy provides $1,000,000 ($200,000/$300,000 SIR) in coverage for general liability and law enforcement liability. Premium is based on the City's payroll.
Automobile
Carrier: Preferred Government Insurance Trust (PGIT) | Premium: $176,284. This policy provides physical damage coverage for those vehicles valued at over $100,000 ($25,000 SIR). Fire apparatus are covered at an agreed value (purchase price), and all others are covered at the actual cash value at the time of loss (depreciated value).
Public Officials' Liability
Carrier: Preferred Government Insurance Trust (PGIT) | Premium: $182,104. This policy provides for Public Officials Liability and Employment Practices Liability with a limit of $1,000,000 and self-insured retention (SIR) of $200,000.
Cyber Liability
Carrier: Preferred Government Insurance Trust (PGIT) | Premium: $21,865. 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.
Excess Workers' Compensation
Carrier: Preferred Government Insurance Trust (PGIT) | Premium: $476,638. This policy provides a statutory limit ($500,000 SIR) in coverage for workers' compensation claims and a $1,000,000 limit ($500,000 SIR) for employer’s liability. Premium is based on the City's payroll.
Pollution Liability
Carrier: Indian Harbor | Premium: $0 (2-year premium). The policy provides $1,000,000/$10,000,000 ($100,000 SIR) in coverage for pollution and remediation costs.
Fiduciary Liability
Carrier: Travelers Casualty & Surety | Premium: $15,108. This policy provides a limit of $1,000,000 in coverage for each Pension Board: Fire ($5,000 SIR), Police ($5,000 SIR), and General Employees ($10,000 SIR).
AD&D
Carrier: Ace American Insurance Company | Premium: $24,075. 2-year policy 10/1/2024 - 10/1/2026. This policy provides for the accidental death and disability benefits required by Florida Statutes 112.18 and 112.19.
Aviation Liability
Carrier: Global Aerospace | Premium: $2,861. This policy provides a limit of $5,000,000 (no SIR) for premises liability coverage and Hangar Keepers Aircraft coverage of $1,000,000/$2,000,000 ($1,000 SIR).
Firefighter Cancer Benefit
Carrier: ACE American Insurance Company | Premium: $24,777. This policy provides for the lump sum payout and death benefits required by Florida Statute 112.1816.
FISCAL IMPACT:
Funds will be budgeted in Fiscal Year 2024-25 in accounts 628-099-999-590-81-45010 and 626-099-999-590-81-45010 for a total projected premium of $2,469,556.
PROCUREMENT REVIEW:
These services have been procured 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.