Subject:
Title
Approval of Liability, Workers’ Compensation, and Aviation Insurance Programs for FY2021-22
End
Fiscal Impact:
Premium cost not to exceed $1,717,631; funds are budgeted in Business Area 5050 / Cost Centers 389620, 389630 and 389640, and reserves are available to address market-driven premium increases.
Dept/Office:
Office of Human Resources / Risk Management
Requested Action:
Recommendation
We request the Board approve placement of the County’s Auto, General, Professional, and Aircraft and Aviation Liability, and Workers’ Compensation insurance coverage at a cost not to exceed $1,717,631, and authorize the Risk Manager to bind coverage per below.
End
Summary Explanation and Background:
We instructed the County’s authorized insurance broker, PRIA (Public Risk Insurance Agency), to obtain market quotes for the 2021-22 renewal cycle. The renewal recommendations are:
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|
|
|
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Premium Summary |
|
Line of Business |
Eff Date |
Exp. Prem. |
Renewal Prem. |
Rate Change |
Change ($) |
Change (%) |
|
Auto Liability |
10/1/2021 |
85,255 |
102,112 |
15% |
16,857 |
20% |
|
General Liability |
10/1/2021 |
381,293 |
464,828 |
15% |
83,535 |
22% |
|
Professional Liability |
10/1/2021 |
169,838 |
180,154 |
0% |
10,316 |
6% |
|
Cyber Liability |
10/1/2021 |
Included |
35,133 |
N/A |
35,133 |
100% |
|
Crime |
10/1/2021 |
2,400 |
2,400 |
0% |
0 |
0 |
|
Workers’ Compensation |
10/1/2021 |
780,293 |
857,085 |
3% |
76,792 |
10% |
|
Aviation |
10/1/2021 |
65,718 |
75,918 |
15% |
10,200 |
15% |
|
TOTAL |
|
1,484,797 |
1,717,630 |
|
232,833 |
15.7% |
The incumbent, Preferred Governmental Insurance Trust (PGIT), continues to offer coverage and rate combinations that make alternatives non-competitive. Using the Trust’s unique options, we are able to tailor coverage, retentions and limits, resulting in a robust insurance program with coverage combinations that cannot otherwise be procured in the current marketplace. The PGIT program provides insurance and claims administration services for those coverages.
Premium cost of the expiring program is $1,484,797. The projected renewal premium for FY2021-22 is $1,717,630, a net premium increase of 15.7 % ($232,833). The premium change is driven by changes in payroll, employee count and vehicle count, as well as recent adverse claims experience. After evaluating current commercial market conditions, our loss experience, and the commitment made by PGIT to its members, Risk Management recommends we continue to pursue a long-term relationship with the PGIT program, and requests the Board authorize the Risk Manager to execute Insurance Binders, Trust Agreements and contracts as necessary to renew insurance coverages as outlined above.
Clerk to the Board Instructions: