HomeMy WebLinkAboutDocumentation_Regular_Tab 16_08/10/2017 Village of Tequesta
345 Tequesta Drive 561-768-0700
Tequesta,FL 33469 s� www.tequesta.org
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To: Michael R Couzzo, Jr., Village Manager
From: Meriene Reid, HR Director
Date: July 21, 2017
Re: Property& Casualty Insurance Renewals 2017/18
The Village's property and casualty insurance experienced a 13.64% increase for
FY2017/18 due almost exclusively to our Workers Compensation experience over the
past 2 years. The 2017 Experience Mod Factor increased to 1.24 over 2016's rate of
1.04 and 2015's rate of .81. The major expenses relate to injuries that are difficult to
prevent as they are mostly related to factors outside of the Village's control. Other
factors contributing to the WC increases include the rise in overall payroll resulting from
salary increases along with an increase in headcount over the past 2 years. Unlike last
year where the Village was able to reduce the proposed 20% increase by negotiating
changes to the other lines of coverages, it is not recommended that these coverages be
changed any further.
Attached is the 2017/18 FMIT evaluation numbers that propose a total annual renewal
premium of$430,037 (inclusive of brokers' fees). This represents an increase of
$51,611 over the expiring premium of$378,426. An additional $5,000 is being
requested to cover anticipated deductible payments in respect of open liability claims,
making a total request of$435,037.
The Village continues to receive a 7%credit due to our active enforcement of our Safety
program (2%) and Drug Free Workplace policy (5%). For fiscal year 2017/18, we will
also receive a modest Return of Premium Credit of$7,487 in the second quarter. We
opted not to shop the market again this year due to our WC experience. The HR
department therefore recommends that the Village renews the 2017/18 insurance
Property & Casualty Insurance with the Florida Municipal Insurance Trust.
Vice-Mayor Frank D'Ambra ;Mayor Abby Brennan Council Member Tom Patemo
Council Member Steve Okun Council Member Vince Arena
Village Manager Michael R.Couzzo,Jr.
Village of Tequesta
FMIT Property, Casualty & Workers Compensation Insurance DI' GEHRING GROUP
2017/2018 Renewal Evaluation EMPLOYEE BENEFITS I RISK MANAGEMENT
Current Renewal
2016-2017 2017-2018
Coverage Type Carrier Deductible Limits Premium
Property FMIT Deductible Liability Limits Premium
$ 100,000 $ 15,851,352 $ 51,629 FMIT $ 100,000 $ 16,065,352 $ 50,846
*5%TIV Wind *5%TIV Wind
_ Deductible Deductible
Inland Marine
FMIT ,-
$500/$5,000 $ 187,627 Included in FMIT
$500/$5,000 $ 1,000 Included in
- _. Premium Premium
General Liability FMIT
$ 2,500 $ 2,000,000.00 $ 44,621 FMIT
Public Official Liability& FMIT $ 2,500 $ 2,000,000.00 $ 45,306
$ 2,500 $ 2,000,000.00 $ 59,388 FMIT $ 2,500 $ 2,000,000.00 $ 64,696
Employment Practices Liability
Law Enforcement Liability FMIT $ 2,500 $ 2,000,000.00 $ 38,326 FMIT
_ _$ _ 2,500 $ 2,000,000.00 $ 37,227
Auto Liability FMIT
2,500 $ 2,000,000.00 - -
$ 19,452 FMIT _ $ 2,500 $ 2,0000,0000
0.00 $ 19,490
Personal Injury Protection N/A $ 10,000 Included in - -
N/A $ 10,000 Included in
- Premium Premium
Medical Payments N/A $ 5,000 Included in -
N/A $ 5,000 Included in
Premium _ Premium
Physical Damage FMIT $ 2,500 Per Schedule $ 6,639 FMIT
Comprehensive Coverage $ 1,000 Per Schedule $ 5,984
Physical Damage
2,500 Per Schedule Included in
Collision Coverage $ 1,000 Per Schedule Included in
-- _ Premium Premium
Workers'Compensation FMIT
Statutory ----
- ry $ 158,372 FMIT $ - Statutory $ 206,488
Experience Modification Factor $ 1.04 -
_. _ $ 1.24
Payroll $ 6,526,102 - -_Payroll $ 6,880,620
Total Annual Premium: $ 378,426
$Increase or Decrease $ 430,037
%Increase or Decrease NSA $ 51,611
*Named Storm Deductible:5%of scheduled Bldg.,Pers.Prop.&PITO,subject to policy deductible,whichever is greaterN/A 13.64%
Return of Premium Credit:Minimum credit of$7,487 based on property premiums paid in FY 15/16.
Gehring Group receives a 5%commission which is included in the annual premium