HomeMy WebLinkAboutDocumentation_Regular_Tab 31_8/13/2020Agenda Item #31 0
Regular Council
STAFF MEMO
Meeting: Regular Council -Aug 13 2020
Staff Contact: Merlene Reid, Director, HR & Risk Department: HR
Management
MOM*
Approve Property and Casualty Insurance Renewals FY 2020/21
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The 2020/21 property and casualty insurance renewals returned a 4.17% increase over the expiring
year, due to the following reasons:
1. Workers Compensation: Payroll estimates for FY20/21 was approximately $300,000 lower
than the expiring policy. This change was due to staff reduction mainly related to the 911 call
center's move to NorthComm. The Village's experience mod rate also fell from 1.04 to .91,
creating a credit of 7% to the Village's premium factor. These reductions significantly helped
to offset increases to the property and general liability coverages.
2. General Liability: This category saw a 12% increase. Across the industry, the primary driver
of significant premium increases is currently related to anticipated COVID-19 lawsuits,
however FMIT has resisted passing on extreme increases for the upcoming policy term. It is
yet to be seen how liability premiums will play out over the next year. Additionally, law
enforcement liability continues to experience an uptick in premiums across agencies.
3. Property & Inland Marine: This category saw the largest increase of 16%. Over the past
year, the Village added over $4 Million to its building values, which included increased values
for Village Hall, Public safety, and additional IT equipment. All inland marine items over
$15,000 are now required to be itemized and this category which includes the bucket truck,
loaders, excavators and generators are now valued at a total of $1,923,177. These
circumstances, in addition to what the brokers refer to as a hardening property insurance
market, led to the increases.
Attached is the 2020/21 evaluation numbers that propose a renewal premium of $577,763, inclusive
of brokers' fees. This represents a total increase of $23,122 over the expiring premium of $554,641
and includes our Drug -Free Workplace and Safety Program Premium Credits. An additional $10,000
is also being requested to cover deductible payments in respect of liability claims, making a total
request for approval of $587,763.
-• • • - •►s • �.
HR recommends that the Village renews the 2020/21 Property & Casualty Insurance with the Florida
Municipal Insurance Trust.
FMIT Renewal Evaluation 20-21.ada
Page 450 of 451
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