Subject:
Title
Approval of Liability, Workers' Compensation, Crime, and Aviation Insurance Programs for FY2024-25.
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Fiscal Impact:
Premium cost of $2,293,350 will not require changes to the budgeted revenue requested in FY2024-25 in Business Area 5050 / Cost Centers 389620, 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, and Workers' Compensation insurance coverage at a cost not to exceed* $2,293,350 and authorize the Risk Manager to bind coverage per below.
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Summary Explanation and Background:
Insurance procurement is a risk management strategy that serves to protect the County from financial consequences by shifting risk to an insurance carrier or coverage arrangement. We instructed the County's authorized insurance broker, Brown & Brown, to obtain market quotes for the 2024-25 renewal cycle. The renewal recommendations are:
In addition to the premium cost of coverage described above, the County also incurs expenses for program claims administration to include third-party claims handling, and most importantly, claim payments for losses falling within the County's deductible. The incumbent, Preferred Governmental Insurance Trust (PGIT), continues to offer coverage and rate combinations that make alternatives non-competitive. The PGIT program provides the County access to cost-effective insurance and claims administration services for those coverages.
Premium cost of the expiring program is $2,087,093. The projected renewal premium for FY2024-25 is $2,293,350, a net premium increase of 9.88% ($206,257). The premium change is driven by changes in payroll, employee count and vehicle count, as well as aviation market increases arising out of unfavorable global circumstances. After evaluating current commercial market conditions, our loss experience, and the commi...
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