Item D12
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: June 21. 2006
Division: Employee Services
Bulk Item: Yes ~ No
Department: Employee Services
Staff Contact Person: Maria L. Slavik
AGENDA ITEM WORDING: Approval for Purchase of Airport Liability insurance with Ace USA
through Arthur 1. Gallagher and Company.
ITEM BACKGROUND: Provides $50 million in liability insurance coverage for Airport Operations
(Key West and Marathon). Per Monroe County purchasing policy this coverage was put out for bids
./with incumbent providing lowest proposal. Increase Liability $50,000,000 excess of $50,000,000 _
t Total limit $100,000,000 Separate Policy with Lloyds of London at an Annual Premium of $26, 875.
Effective date 7/27/05-7/27/06.
PREVIOUS REVELANT BOCC ACTION: Approved current coverage with this carrier effective
7/27/04.
CONTRACT/AGREEMENT CHANGES: Premium did not increase it remained the same.
STAFF RECOMMENDATIONS: Approval.
TOTAL COST: $75.821
BUDGETED: Yes
No
COST TO COUNTY: $75.821
REVENUE PRODUCING: Yes
No-X. AMOUNTPERMONTH_ Year
APPROVED BY: County Atty _ OMBIPurchasing _ Risk Management _
DIVISION DIRECTOR APPROVAL:
DOCUMENTATION:
Included
To Follow
Not Required
AGENDA ITElVl
Revised 2/27/01
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract with:
Arthur J. Gallagher & Co Contract
Effective Date:
Expiration Date:
7/27/2006
7/27/2007
Contract Manager: Maria Slavik
(Name)
3178
(Ext. )
Risk Management #7
(Department/Stop #)
for BOCC meetin on
6-21-06
enda Deadline: 6-6-2006
CONTRACT COSTS
Total Dollar Value of Contract: $ $75,821
Budgeted? YesfZ1 No 0 Account Codes:
Grant: $
County Match: $
Current Year Portion: $
403-63001-530-450-_
403-63501-530-450-_
- - - -
-----
- - - -
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ADDITIONAL COSTS
Estimated Ongoing Costs: $~yr For:
(Not included in dollar value above) (eg. maintenance, utilities,jauitorial, salaries, etc.)
CONTRACT REVIEW
Changes
Date In Needed
Division Director YesO NoIT
Date Out
Risk Managem '
O.Itr.B./Purc sing
~Reviewer
YesO NoO
County Attorney
Comments:
OMB Form Re,,'ised 2/27/01 MCP #2
I NTERISK
CORPORA TION
Consultants
Risk Management
Employee Benefits
1111 North Westshore Boulevard
Suite 208
Tampa, FL 33607-4711
Phone (813) 287-1040
Facsimile (813) 287-1041
June 5, 2006
Ms. Maria Slavik
Risk Management Specialist
Monroe County
502 Whitehead St.
Key West, Florida 33040
Subject: Renewal of Airport and Operators General Liability:
Dear Maria:
A copy of Arthur 1. Gallagher's proposal for the renewal of the County's Airport Owners and Operators
General Liability insurance has been received and reviewed.
The County's current program is provided by three (3) different insurers divided into two (2) separate
layers. ACE Property & Casualty Insurance Company provides the first $50 million of coverage and
Lloyds of London and Allianz Marine & Aviation Insurance Company provides an additional $50 million
of coverage for any claim that exceeds the limits provided by ACE. This brings the total limits of
protection to $100 million. The combined annual premium for the current program is $75,821. There is no
dednctible associated with the current program. The current program has been enhanced to provide
"contingent" liqnor liability coverage in the event the insurance provided by the operators of the Couch
Flyer at the Key West International Airport fails to adequately protect the County. It is believed that the
current program is well structured ntilizing insurers that enjoy favorable ratings from the A.M. Best and
Company, the leading evaluator of insurance company operations.
Gallagher has submitted a proposal indicating that ACE, Lloyds and Allianz has agreed to renew their
policies effective July 27,2006 for a period of one (1) year. The proposal indicates that the terms,
conditions and pricing will be the same as the current program. In light of the unstable insurance market
place, it is believed that Gallagher has snbmitted an attractive renewal proposal and it is being
recommended that Monroe County aecepts Gallagher's proposal for the July 27,2006 to July 27,2007
policy term.
It should be noted that as with the current program, claims arising out of war or terrorism will be excluded.
Gallagher bas indicated that these exclusions can be removed for an additional premium of$45,000
($30,000 for war and $15,000 for terrorism). It is not believed that the additional cost being proposed to
eliminate these two exclusions is cost justified. It is therefore recommended that the County not pay the
additional premium to eliminate the war and terrorism exclusions.
As always, please do not hesitate to call if you have any questions.
Cordially,
INTERISK CORPORATION
Sidney G. Webber
CPCU, ARM
Cc: Teresa Aguiar
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