Subject:
Title
Approval of FY23-24 Liability, Workers’ Compensation, Crime, Pollution and Aviation Insurance
End
Fiscal Impact:
Premium cost of $2,184,430 will not require changes to the budgeted amount requested in FY 2023-24 in Business Area 5050 / Cost Centers389620, 389630 and 389640.
Dept/Office:
Office of Human Resources / Risk Management
Requested Action:
Recommendation
We request the Board approve placement of the County’s Auto, General, Professional, Crime, Cyber, Aircraft and Aviation Liability, Workers’ Compensation and Pollution insurance coverage at a cost not to exceed $2,184,430 and authorize the Risk Manager to bind coverage per below.
End
Summary Explanation and Background:
We instructed the County’s authorized insurance broker, Brown & Brown (formerly PRIA), to obtain market quotes for the 2023-24 renewal cycle. The renewal recommendations are:
|
|
|
|
|
Premium Summary |
|
Line of Business |
Eff Date |
Exp. Prem. |
Renewal Prem. |
Change ($) |
Change (%) |
|
Auto Liability |
10/01/2023 |
131,679 |
153,886 |
22,207 |
17% |
|
General Liability |
10/01/2023 |
410,937 |
493,036 |
82,099 |
20% |
|
Professional Liability |
10/01/2023 |
186,751 |
216,232 |
29,481 |
16% |
|
Cyber Liability |
10/01/2023 |
47,466 |
54,597 |
7,131 |
15% |
|
Crime |
10/01/2023 |
2,645 |
2,820 |
175 |
7% |
|
Workers’ Compensation |
10/01/2023 |
909,795 |
1,069,587 |
159,792 |
18% |
|
Aviation |
10/01/2023 |
82,546 |
90,304 |
7,759 |
9% |
|
Pollution Liability |
10/31/2023 |
Prepaid |
*$103,967 |
4,122 |
4% |
|
TOTAL |
|
1,771,819 |
2,184,430 |
412,611 |
23.3% |
*The Pollution Liability is renewed on a three-year prepaid policy, guaranteeing the current rate over three years while meeting the financial responsibility for storage tanks.
Premium cost of the expiring program is $1,771,819. The projected renewal premium for FY2023-24 is $2,184,430, a net premium increase of 23.3% ($412,611). Of that amount, $103,967 represents the cost of a 3-year policy for pollution. The premium change is driven by increases in payroll, employee count and vehicle count, as well as claims experience.
The Preferred Governmental Insurance Trust (PGIT) continues to offer coverage and rate combinations that make alternatives non-competitive. The PGIT program provides insurance and claims administration services for those coverages. After evaluating current commercial market conditions, our loss experience, and the commitment made by PGIT to its members, Risk Management recommends we maintain our relationship with the PGIT program, and requests the Board authorize the Risk Manager to execute insurance binders and contracts as necessary to renew insurance coverages as outlined above.
Clerk to the Board Instructions: