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Home My WebLink AboutDocumentation_Regular_Tab 12_09/13/2018 Village of Tequesta 345 Tequesta Drive 561-768-0700 Tequesta, FL 33469 ��w�v.tequesta.org � � To: Michael R Couzzo, Jr., Village Manager From: Merlene Reid, HR Director Date: August 28, 2018 Re: Properry& Casualty Insurance Renewals 2018/19 The Village's property and casualty insurance experienced an 18.45% increase for FY2018/19 due mostly to our Workers Compensation (WC) experience which represents 84% of the total increase. The 2018/19 Experience Mod Factor increased to 1.29 over 2017/18's rate of 1.24 and 2016/17's rate of 1.04 for a number of reasons. Firstly, the Village has experienced an uptick in injuries covered under the State's "Heart & Lung" bill, which automatically presumes on-the-job occurrence. Other contributory factors include the rise in total payroll resulting from salary increases, increase in headcount over the past 2 years and increases in the WC rates for all employee class codes with the exception of clerical/office workers. Specifically, the WC market has seen a rate increase to the first responder's class codes in anticipation of the start of the new PTSD legislation that takes effect on 10/01/2018. Our Brokers have been invited to give a very brief summary of this legislation and our recent claims history. Attached is the 2018/19 FMIT evaluation numbers that propose a total annual renewal premium of $509,388 (inclusive of brokers' fees). This represents an increase of $79,351 over the expiring premium of $430,037. An additional $5,000 is being requested to cover one deductible payment in respect of open liability claims, and to pay for a Village-wide property appraisal, making a total request of $514,388. We opted not to shop the market again this year due to our poor WC experience, which we expect to start improving with the current fiscal year. The HR department therefore recommends that the Village renew the 2018/19 insurance Property & Casualry Insurance with the Florida Municipal Insurance Trust. Attachments: Appendix A —WC Management Summary Report Appendix B — FMIT Property, Casualty & WC Renewal Evaluation �"ice-Jlacor Frank D'_�mbra \Ia`or.�bbc Brennan Council \Icmber Tom Patemo Council \Iember Ste��e Okun Council\Iember�"ince_lrena �"illage \Lanager\lichael R. Couzzo,Jr. �;`y=-'J�l X ,� . . - . - . . . . - . . . . � � : � . � � Total Number of Clalma ta � � � � •.- Paid To Date . _ Open Claims 2 �-.. - •• •• � • -. ' Lost Time Clalma 0 Fire 7 0 $0 $0 ' Experience Mod.Factor 1.24 Police 5 2 $1,143 $2,212 $3,354 $7,517 $10,871 Eamed Premlum To Date $49,184 Miscellaneous 1 0 $198 $198 $198 Eamed Losses To Date $11,389 Public Works 1 0 $320 $320 $0 $320 Loss Ratio To Date 23°r6 • • s1 340 $2 532 a3 872 Totsl Number of Claims 18 � • � Open Claims 4 F/F Paramedic 5 3 $19,291 $18,511 $45,014 $82,816 $62,098 $144,899 - LostTlmeClalms 4 Police 4 1 $2,527 $3,627 $17 $6,171 $0 $6,171 ExpaHence Mod.Factor 1.04 Public Works 3 0 $422 $422 $422 � Eamed Premlum To Date $150,830 Parks 8 Recreatia 2 0 $0 $0 Eamed Losses To Date $161,088 Fire 1 0 $262 $262 $262 Loss Ratlo To Date 107°� Administration 1 0 $9,329 $6 $9,335 $9,335 � • ;21 818 532161 a46 038 $99 008 • �•: . �:: Totel Number of Clelma 12 2015-2016 • Open Clalms 0 Police 5 0 $38,611 $93,802 $9,603 $142,016 $142,016 ' Lost Time Clalms 2 F/F Paramedic 4 0 $3 $3 $3 Experlence Mod.Factor 0.81 Fire 2 0 $7,532 $22,21a $633 $30,379 $26,628 Earnad Premlum To Date $117,170 Water-P8S 1 0 $2,691 $2,691 $2,691 Earned Losses To�ate $171,337 • . � ;48143 s118 707 a10 Z38 ;176 088 Loas Ratlo To Date 148°� Total Number of Clsims 18 2014-2015 Open Claims 1 Police 10 1 $27,477 $130,977 $2,892 $161,346 $341,206 $502,354 � LoatTlmeClaims 3 Fire 3 0 $11,569 $19,827 $61 $31,456 $31,456 Expehence Mad.FeCtor .93 Parks 8 Recreatio 1 0 $1,191 $1,191 $1,1g1 Earned Premium To Date $128,957 Water-P8S 1 0 $2,268 $2,268 $2,268 Earned Losses To Dete $537,789 Administration 1 0 $20 $500 $520 $520 Losa Ratlo To Date 424% • . s38 046 5164 282 53,483 �796 781 �. Total Number of Claims 13 2013-2014 � Open Clalms 0 Police 8 0 $466 $16,761 $324 $19,551 $t8,803 � Lost Tlme Claims 1 F/F PARAMED 3 0 $2,204 $6 $2,209 $2,2pg Experlence Mad.Factor 1.18 Code Enforcemen 1 0 $1,377 $1,377 $1,377 Earned Premium To Date $148,401 Water-Distributic 1 0 $622 $622 $622 Eamed Lasse�To Date $23,012 . � j466 ;22 964 $329 a23 780 � Loea Ratlo To Date 18°� Note:Earned Premium to Date reflects remitted figures thru January 31,2018 and does not include:Expense constant,Incentive credit or Service fee. 'Other-Reflects legal and or other administretive charges. CGE�HRIENGpSGRNOEUP � -� -� -1 -� � i��N�IX � Village of Tequesta G E H R I N G G f�O U P FMIT Property, Casualty&Workers Compensation Insurance � I EMPLOYEE BENEFITS � RISK MANAGEMENT 2018/2019 Renewal Evaluation Current Renewal � � � � Covera e T e Deductible Llebill limits Premlum Daductibl� lf�btlit Limits Premlum Property FMIT , $ 100,000 $ 16,065,352 , $ 50,846 FMIT $ 100,000 $ 16,065,352 $ 54,621 _ - __ _ - , _ *5%TIV Wind *5%TIV Wind Deductible Deductible - - _ ---_ ___ __- -- __ ____ - -- _ ---- --- ------- --- Inland Marine FMIT $500/$5,000 $ 1,187,627 Included in FMIT $S00/$5,000 $ 1,187,627 Included in Premium Premium -- - --- ---- -- -- ---- _____- ---- ----- - - _--- _____--- General Liability FMIT $ 2,500 $ 2,000,000.00 $ 147,229 FMIT $ 2,500 $ 2,000,000.00 $ 155,740 -- ___ __-- - ---- --- __ _ _-- - __ _ __ _ _ _ - -- _ -- -- - ------ ___--- Public O�cial Liability& FMIT $ 2,500 $ 2,000,000.00 Included in FMIT $ 2,500 $ 2,000,000.00 Included in Employment Practices Liability Premium Premium --- __- -- --- -- --- -------- - - --- - - -- Law Enforcement Liability FMIT $ 2,500 included in FMIT $ 2,500 Included in _ ____ _ _ __ _ _ __ $ 2,000,000.00 Premium $ 2,000,000.00 Premium - -- - _ ---- ------- - ------ Auto Liability FMIT $ 2,500 $ 2,000,000.00 $ 19,490 FMIT $ 2,500 $ 2,000,000.00 $ 19,113 _ ._ _-_ _ ___._. . - -- -_ _----- --- --- --- ____--- ------ Personal Injury Protection N/A $ 10,000 Included in N/A $ 10,000 Included in -- - _-. _- _ Premium Premium -...-_ _ __ Medical Pa ments N A Y / $ 5,000 Included in N/A $ 5,000 Included in Premium Premium - --- -- - - -- ------- -- - --_- - --- ---- -- Auto Physical Damage FMIT $ 1,000 Per Schedule $ 5,984 FMIT $ 1,000 Per Schedule $ 6,871 __ _-------- --- ---- Workers'Com ensation FMIT $ - Statutor p _ y $ 206,488 FMIT $ - Statutory $ 273,042 - - -- ---- Estimated Payroll _ $ 6,880,820 $ 7,397,800 - _----- __ - --- --- -- _ . --_ _ -- _ _ -------- --- _ _ __ ____ Experience Modification Factor ! la 1.29 Total Annual Premium: $ 430,037 $ 509,388 $Increase or Decrease N�q $ 79,351 %Increase or Decrease N/A 18.45% *Named Storm Deductible:5%of scheduled Bldg.,Pers.Prop.&PITO,subject to policy deductible, whichever is greater Return of Premium Credit:Minimum credit of$6,373 based on property premiums paid in FV 16/17.