HomeMy WebLinkAboutDocumentation_Regular_Tab 16_8/8/2019Regular Council
Amended Agenda -
STAFF MEMO
Item 16
Meeting: Regular Council - Aug 08 2019
Staff Contact: Merlene Reid, Assistant Department: HR
Manager/Director of Human
Resources
TITLE
Approve Renewal of the 2019/20 Property & Casualty Insurance with the Florida Municipal Insurance
Trust
SUMMARY:
The 2019/20 property and casualty insurance renewals returned a 9.03% ($46,014) increase, due
chiefly to a recently completed property appraisal (inclusive of Inland Marine items). The 2019
appraisal increased our liability limits to $25,374,787 over the last appraisal commissioned in 2012,
intent to conduct a Village-wide property appraisal in 2019, to ensure that we are adequately insured
with accurate replacement values.
We also experienced a 10.9% increase in our Employment Practices Liability, due mainly to their
2019/20 Work
previous years of 1.24 and 1.29, resulting in savings of $23,047.
We opted not to shop the market this year due to our continued fragile WC experience, which has
however started to show some improvement as predicted in our last correspondence. Attached is the
This represents a total increase of $46,014 over the expiring premium of $509,388 and includes our
Drug-Free Workplace and Safety Program Premium Credits. Council is however asked to note that
for FY2019-20, FMIT does not appear to be offering their regular Return of Premium Credit.
An additional $7,500 is also being requested to cover deductible payments in respect of open liability
claims, making a total request for approval of $562,902.
Attachment: Appendix A FMIT Property, Casualty & WC Renewal Evaluation
POTENTIAL MOTION / DIRECTION REQUESTED:
HR recommends that the Village renews the 2019/20 insurance Property & Casualty Insurance with
the Florida Municipal Insurance Trust.
ATTACHMENTS:
2019-20 PC Insurance Renewal Evaluation Only 19-20 Gehring
%
8,151
19,642
104,939 172,675 24
Premium Premium Premium Premium Premium
5
Included in Included in Included in Included in Included in
Premium
$ $ $
$
$
$ $
5,000
10,000
374,787
1,187,627
Statutory
25, 000,000.00000,000.00
Per Schedule
2, 2,000,000.00 2,000,000.00 2,
2019-2020
Renewal
Liability Limits
$ $ $ $
$
$
$
$
-
1.04
N/A N/A
7,397,800
Deductible
$500/$5,000
*5% NS/Wind
$ 100,000
$ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 1,000
$
$
N/AN/A
6,871
54,621 19,113
155,740 273,042 509,388
Premium Premium Premium Premium Premium
Included in Included in Included in Included in Included in
Premium
$ $
$
$ $
$
5,000
10,000
1,187,627
Statutory
16,065,352
Per Schedule
2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00
Current
2018-2019
Liability Limits
$ $ $ $
$
$
$
$
-
1.24
N/A N/A
6,880,820
Deductible
$500/$5,000
*5% NS/Wind
$ 100,000
$ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 1,000
$$
: 5% of scheduled Bldg., Pers. Prop. & PITO, subject to policy deductible, whichever is greater
Personal Injury ProtectionEstimated Payroll
Named Storm Deductible
Village of TequestaFMIT Property, Casualty & Workers Compensation Insurance 2019-2020 Renewal Evaluation
Coverage TypeProperty Inland Marine General LiabilityPublic Official Liability & Employment Practices LiabilityLaw Enforcement LiabilityAuto Liability Medical Payments Auto Physical
DamageWorkers' Compensation Experience Modification Factor Total Annual Premium:$ Increase or Decrease% Increase or Decrease
*
Agenda Item #16.
o� as ►spL
+J
R Council a
•
STAFF MEMO
�' COVMti
Meeting: Regular Council - Aug 08 2019
Staff Contact: Merlene Reid, Assistant Department: HR
Manager/Director of Human
Resources
Approve Renewal of the 2019/20 Property & Casualty Insurance with the Florida Municipal Insurance
Trust
Florida Municipal Insurance Trust (FMIT) returned a 7.6% ($50,318) increase for our 2019/20
property and casualty insurance renewal premiums, due chiefly to a recently completed property
appraisal (inclusive of Inland Marine items). The 2019 appraisal increased our liability limits to
$25,374,787 over the last appraisal commissioned in 2012, which had limits of approximately $16M.
Council was advised during the 2018 renewals of management's intent to conduct a Village -wide
property appraisal in 2019, to ensure that we are adequately insured with accurate replacement
values.
We also experienced a 10.9% increase in our Employment Practices Liability, due mainly to their
increased experience with employee litigation in recent years. On the other hand, the Village's
2019/20 Workers' Compensation Experience Mod Factor decreased to 1.04, down from the two
previous years of 1.24 and 1.29, resulting in savings of $30,328.
We opted not to shop the market this year due to our continued fragile WC experience, which has
started to show some improvement as predicted in our last correspondence.
Attached is the 2019/20 evaluation numbers that propose a total annual renewal premium of
$548,121, inclusive of brokers' fees. This represents a total increase of $38,733 over the expiring
premium of $509,388 and includes our Drug -Free Workplace and Safety Program Premium Credits.
Council is however asked to note that unfortunately, FMIT does not appear to be offering their regular
Return of Premium Credit for this renewal period.
An additional $10,000 is also being requested to cover two deductible payments in respect of open
liability claims, making a total request for approval of $558,121.
Attachment: Appendix A — FMIT Property, Casualty & WC Renewal Evaluation
POTENTIAL MOTION- •REQUESTED: I
HR recommends that the Village renews the 2019/20 insurance Property & Casualty Insurance with
the Florida Municipal Insurance Trust.
Page 180 of 182
Agenda Item #16.
PC Insurance Renewal Evaluation 19-20 FMIT
Page 181 of 182
Village of Tequesta
FMIT Property, Casualty & Workers Compensation Insurance
2019-2020 Renewal Evaluation
Deductible .
Property
$ 100,000
$
*5% NS/Wind
Inland Marine
$500/$5,000
$
General Liability
$ 2,500
$
Public Official Liability &
$ 2,500
$
Employment Practices Liability
Law Enforcement Liability
$ 2,500
$
Auto Liability
$ 2,500
$
Personal Injury Protection N/A $
Current
GEHRING GROUP
EMPLOYEE BENEFITS I RISK MANAGEMENT
Renewal
16,065,352
$ 54,621
$ 100,000
$
*5% NS/Wind
Included in
1,187,627
$500/$5,000
$
i
Premium
2,000,000.00
$ 155,740
$ 2,500
$
Included in
2,000,000.00
$ 2,500
$
Premium
Included in
2,000,000.00
$ 2,500
$
Premium
2,000,000.00
$ 19,113
$ 2,500
$
Included in
10,000
N/A
$
Premium
Medical Payments
N/A
$ 5,000
Included in
Premium
$ 6,871
$ 273,042
N/A
$ 1,000
$ -
$
Auto Physical Damage
$ 1,000
Per Schedule
Workers' Compensation
$ -
Statutory
Estimated Payroll
$ 6,880,820
$ 7,397,800
Experience Modification Factor
1.24
1.04
25,374,787 1 $
1,187, 627
2,000,000.00 $
2,000,000.00
5,000
Per Schedule $
Statutory $
Included in
Premium
172,675
Included in
Premium
Included in
Premium
Included in
Premium
Included in
Premium
8,151
242,714
1 otai Annual Premium: $ 509,388
$ 548,121
$ Increase or Decrease N/A
$ 38,733
% Increase or Decrease N/A 7.60%
*NamokllStorm Deductible: 5% of scheduled Bldg., Pers. Prop. & PITO, subject to policy deductible, whichever is greater
00
N
O
OD
N
to
M
a
M
o�