HomeMy WebLinkAboutDocumentation_Regular_Tab 17_8/10/2023Agenda Item #17.
Regular Council
STAFF MEMO
Meeting: Regular Council - Aug 10 2023
Staff Contact: Merlene Reid, Director, HR & Risk Department: HR
Management
EBOW
Consider Approval of Property & Casualty Insurance Renewals 2023/24
m
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Anticipating a challenging renewal year based on carrier feedback, on July 13, 2023 the risk
management team met with Council to workshop the Village's various lines of insurance coverages,
the rationale for projected substantial increases, and our available options.
On July 28, 2023, we were notified that our Property and Casualty renewals returned an overall
increase of 41.33% over the expiring year. An analysis of the numbers chiefly attributes this increase
to the following reasons:
1. Property Insurance: This category received an increase of 135% due to the catastrophic
events of the previous year in Florida, and despite our best efforts to decrease our property
liability limits from $31,645,847 to $28,459,800 (refer to Current vs Renewal Alt column). With
only 3 commercial carriers available, all are currently reeling from approximately $50M-$100M
in losses.
2. Workers Compensation: With payroll estimates increasing by $1,023,190 over the expiring
policy, this contributed significantly to the 12% increase for FY23/24. Overall, the 3 main factors
are:
a. An Experience Modification Rating of 1.07 (although an improvement over the previous
year's EMR of 1.13),
b. Annual salary increases, driven by prevailing CPI and memorialized in union agreements,
and
c. The costs associated with adding 5 new positions (4 full-time and 1 part-time).
Attached is the 2023/24 Renewal Evaluation numbers that shows a renewal premium of $999,903,
inclusive of brokers' fees, in addition to the extra $10,000 required to cover deductible payments in
respect of liability claims, making a total approval request of $1,009,903. Also attached is the estimated
cost allocation by fund.
The Village continues to meet the criteria to retain its 7% credit for actively maintaining its Safety
program (2%) and enforcing its drug free work place policy (5%).
This document and any attachments may be reproduced upon request in an alternative format by
completing our Accessibility Feedback Form, sending an e-mail to the Village Clerk or calling 561-768-
0443.
Page 241 of 250
Agenda Item #17.
BUDGET AMOUNT Refer to AMOUNT AVAILABLE Refer EXPENDITURE AMOUNT: N/A
Cost Summary to above memo
FUNDING SOURCES: Refer to above memo IS THIS A PIGGYBACK:
❑ Yes ❑x N/A
DID YOU OBTAIN 3 QUOTES?
❑ Yes ❑x N/A
COMMENTS/EXPLANATION ON SELECTIONRefer to above memo
The Village renews the 2023/24 Property & Casualty Insurance with the Florida Municipal Insurance
Trust in line with the attached Property, Casualty & WC Renewal Evaluation.
ATTACHMENTS: I
FMIT PC Renewal Evaluation 23-24 ADA
Property Casualty Projection 2023-24 Actual Finance.ada
Page 242 of 250
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