Item C21
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: September 16, 2009 Division: Employee Services
Bulk Item: Yes l No - Department: Employee Benefits
Staff Contact Person/Phone #: Maria Fernandez-Gonzalez Ext. 4448
AGENDA ITEM WORDING: Approval to purchase Specific Excess Workers' Compensation
Insurance from Star Insurance Company of Brown & Brown Insurance for an annual premium
of $192,512 (unauditable) with a self-insured retention of $500,000 for the period of October 1,
2009 to September 20, 2010.
ITEM BACKGROUND: 2009 RFP distributed in accordance with purchasing guidelines with
11 bids received. The proposal submitted by Star Insurance Company through Brown & Brown
with a $500,000 retention best serves Monroe County.
PREVIOUS RELEVANT BOCC ACTION: Services bid 2003 - Midwest was the selected
company; services re-bid in 2006 at the direction of the BOCC and Safety National of Brown &
Brown Insurance was selected. Monroe County is currently insured with Star Insurance
Company of Brown & Brown Insurance.
CONTRACT/AGREEMENT CHANGES: Annual premium of$192,512 (unauditable) with a
self insured retention of $500,000.
STAFF RECOMMENDATIONS: Approval
TOTAL COST:$192.512 INDIRECT COST: BUDGETED: Yes ~No
-
DIFFERENTIAL OF LOCAL PREFERENCE:
COST TO COUNTY: $192.512 SOURCE OF FUNDS: Primary Ad Valorem
REVENUE PRODUCING: Yes No ~ AMOUNT PER MONTH Year
APPROVED BY: County Atly ~ - urchasing _ Risk Management -llti -
DOCUMENT A TION: Included X Not Required_
DISPOSITION: AGENDA ITEM #
Revised 7/09
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract #
Contract with: Star Insurance Effective Date:October 1, 2009
Expiration Date:September 30,2010
Contract Purpose/Description:Approval to purchase Specific Excess Workers' Compensation
Insurance.
Contract Manager: 4448 Employee Services
Maria Z. Fernandez-Gonzalez
(N ame) (E xt. ) (Department)
for BOCC meeting on September 16, 2009 Agenda Deadline: September 1, 2009
CONTRACT COSTS
Total Dollar Value of Contract: $192,512.00 Current Year Portion: $ -
Budgeted? Yes[SJ NoD Account Codes: 501-07502-530450- -
--
Grant: $ - - - -
- -----
County Match: $_ - - - -
-----
- - - -
-----
ADDITIONAL COSTS
Estimated Ongoing Costs: $_/yr For: -
(Not included in dollar value above) (eg. maintenance, utilities, janitorial, salaries, etc.)
CONTRACT REVIEW
Changes Date Out
~Date In Needed@
Division Director ,. ~1'o( YesD No '6rd7 r 0 (.
Risk Mam~ment ~{j1 YesD NoE:J &JLw
p)~ G(' q-/-tF; YesD No&( Cff~
O. M.B./Purchasing
~ YesDNorl rj,~Jj
County Attorney f-Zf-09
Comments: -
OMB Form Revised 911 1/95 Mep #2
r
(" ", ,'-'-.r---- 1l0AIW OF Ull''\TY mmnSSIO'\ERS
O,Yv~,rY ~,~,~,~~E \fayof (;I;"'orgt~ Nt'u~i'lIt. ni~lrii't ~
'fayor Pro T"1ll Sylvia.1. Murphy. District :;
Kim Wigington. District I
lI(>alh~r Carrutb,'rs. District 3
\fari" Di (;,'lIl1aro. Oi,tri"t t
(305) 294-4641
ome(' of Ihe Employee Servi(.('S Divi~ion Diredor
The Hi~lori(' (;alo Cigar Fadory
1100 Simonlon Slreet, Suile 268
Key Wesl, Fl, :J:JOW i ,:,,<-\
(:J05) 292-U58 - Phone
(305) 292-t5M - Fax
- - -.. .-
.~ .. ~ "M ~
~<~- .~~ ~b -;.~; ~~.
.-..... ,~_. ....
TO: Board of County Commissioners DATE: August 27, 2009
FROM: Teresa E. Aguiar,
Employee Services Director
SUBJ: Excess Workers' Compensation Insurance
This item requests approval to award bid for Specific Excess Workers' Compensation Insurance from
Star Insurance Company of Brown & Brown Insurance for the period of October 1,2009 to September
30,2010.
The County is an authorized self-insurer for Workers' Compensation within the State of Florida. The
structure of our current program requires the County to assume the first $1 million of each claim. The bid
process proved favorable for the County in that we were able to lower the retention from $1 million to
$500,000 with an overall savings of 9% in the projected costs for the upcoming year. The premium is
based on actual payroll and claims history and the policy is unauditable which means that actual payroll
numbers are not reviewed each time there is a renewal which benefits the County.
It is the recommendation that the County award bid for its Excess Insurance Policy with Star National as
the insurer as presented by Brown and Brown Insurance for the period of October 1, 2009 to September
30, 2010. If you have any questions on this item, please do not hesitate to contact me at X4458.
I NTERISK CORPORATION
Consultants 1111 North Westshore Boulevard
Su ite 208
Risk Management Tampa, FL 33607-4711
Employee Benefits Phone (813) 287-1040
Facsimile (813) 287-1041
August 14, 2009
Ms. Maria Z. Fernandez
Workers' Compensation Manager
Monroe County
1100 Simonton Street
Key West, Florida 33040
Re: RFP# RSK-217-148-2009-PUR/CV - Excess Workers' Compensation Insurance
Dear Maria:
The County's Excess Workers' Compensation insurance expires on September 30, 2009.
Currently the County obtains its Workers' Compensation insurance from the Star Insurance
Company with Brown & Brown Insurance, Inc serving as the agent. The policy provides benefits
consistent with Florida Statute S 440 with the County assuming the first $1 million of each claim
as a retention. The current premium for this policy is $162,895. Based on the historical claim
experience for the past five (5) years, the County has experienced an average of 130 claims per
year with benefits owed to the injured employees totaling $1,347,972. Based on the County's
current $1 million retention, they have had to self fund approximately $1,239,355 of this amount
bringing their total annual projected cost of its Workers' Compensation program to approximately
$1,402,250. Had the County purchased traditional Workers' Compensation insurance (without a
retention), the projected premium would have been approximately $2,374,651.
In accordance with its purchasing guidelines, the County prepared and distributed an RFP
requesting competitive proposals for its Excess Workers' Compensation insurance. Seven (7)
different agents initially expressed an interest in the County's RFP identifYing over eleven (11)
different insurers they believed would be competitive. It is believed that the insurers identified
represented the majority, if not all, of the insurers with the ability and desire to provide the
insurance the County was seeking.
Sealed proposals were received and publicly opened on August 5, 2009 with five agents submitting
fonnal proposals with multiple retention options for the County to consider. The agents submitting
proposals included:
y Brown and Brown Insurance, Inc. (the incwnbent agent)
y The Hunt Insurance Group
~ PMA Capital
y Employers Mutual, Inc.
y ReEx Insurance Brokers
Each proposal was reviewed in detail. Since the terms and conditions of Workers' Compensation
policies are typically standardized, emphasis was placed on the overall projected cost of each
proposal taking into consideration the projected claims that the County would have to assume
based on the various retentions offered and the premiums proposed for these options.
As the attached schedule reflects, proposals were received with retentions ranging from $0 to
$1,500,000. When coupled with the projected claim costs that the County would have to assume,
the projected annual costs ranged from $1,274,512 to $2,870,670 with the Star Insurance
Company (the incumbent insurer) submitted by Brown and Brown, Inc. (the incumbent agent)
submitting the proposal with the projected lowest cost. This option would require the County to
assume the fIrst $500,000 of each claim.
If this option is selected the County will pay an annual premium of $192,512 and be responsible
for approximately $1,082,000 in claim costs, bringing the County's total projected annual cost to
$1,274,512.
Since the terms and conditions of the policies proposed are comparable (except for the retentions),
it is believed that the proposal submitted by the Star Insurance Company though Brown and Brown
with a $500,000 retention best serves the County. Selecting this proposal will not only result in a
projected savings for the County of approximately $127,738 (9%), it will enable the County to
reduce their responsibility for each claim by 50% ($1 million to $500,000).
It is therefore recommended that Monroe County select the Star Insurance Company's proposal
with a $500,000 retention as proposed by Brown and Brown, Inc. for its Excess Workers'
Compensation insurance for the 2009/10 policy year.
As always, if you have any questions, please do not hesitate to call.
Cordially,
INTERISK CORPORATION
~; v~ \~
.. / \ l/ . .. -
/""~ / C/ Sidney G. Webber
CPCU, ARM
Cc: Teresa Aquiar
~ .~ ~ ,~ ~ ,~ ~ ,~ ~ ,~
8c c{ ~ c{ 8-c ~ c{c{ 8c ~ c{ c{ 8c c{ ~ ~ 8c c{ c{c{
U"l2 Z z Z U"l2 z zz U"l Ql Z Z Z U"l Ql Z Z z U"l2 Z zz
:;;& ~& ~- ~ ~- ~ :;;&
V> 0.:: V> 0.::
~ ,~ U"l U"l 0 ~ ,~ ~~ 0 U"l U"l ~ ,~ ~ ,~ U"l U"l 0
0> U"l U"l 0) U"l N') 0> U"l U"l
0) N') N <:t_ N')_ Cl.( ll'l.. N') O!.
~~ N- O>- N ~-~ ~ ~ ~ ~~ 0) 0> r-.. ~~ ~ c{ c{ ~-~ r-.. 0> '"
'" N') 0 <:t N') 0) Z Z 0) N') N
.... ~ "t z z .... N N'l, Z N') N "'-
:;;& .... .... ~-~ ~- ~ .... .... :;;& ~& .... ....
V> 0.:: V> 0.::
N ~ N (3 ~ (3
c ~E c .... .... ~E c
~g ~g U"l U"l 0> 0> ~g
~ c{ ~ ~ ~ ~ N- N- <:t- ;:1;- N- <.0 ~ ~~
8[[5 8[[5 8- [[5 0> 0) r-.. - C ~ N') 8[[5
z z z z z z .... q N 8 Ql U"l "!. z zz
U"l"" U"l"" U"l"" .... .... U"l"" .... .... U"l""
v>Ql v>Ql v>Ql v>Ql v>Ql
0.:: 0.:: 0.:: 0.:: 0.::
0 ~ 0
~E ~E N') N') ~E c ~E
ll'l.. ll'l.. ~g
~ ~ ~ U"l N r-.. ~ c{ ~ c{ c{ c{ c{ ~ c{
OC 0[[5 <:t N'" - C Z - C Z Z Z 0[[5 Z Z
cU"l2 z z z U"l..., N') qN'l, ~2 z z ~2 U"l..., z
ii:N')Ql N') Ql .... .... N') Ql N') Ql N')Ql
o V> 0.:: V> 0.:: V> 0.:: V> 0.:: V> 0.::
L-
m
ell r-.. ~ r-.. (3 ~ (3
~E ~E <:t :!j: ~E ~E c
c <:t C U"l U"l ~g
ii: c{ ~ c{ N N- <:t- ii: c{ ~ c{ 0)- N 0- c{ ~ ~
0 0[[5 z z 0[[5 0 0) 0) 0 - c Z Z c. - C <:t 0) N') 0[[5 Z
'0 Z U"l 0> "t ~2 z ::J ~2 r-.. 0> r-.._ Z Z
L- U"l..., ~..., L- U"l...,
C1I m .... m 0 ....
> := N Ql cv>Ql N Ql L- N Ql NQl
u- .c V> 0.:: ii: 0.:: "" V> 0.:: Q V> 0.:: ~ V> 0.::
ii.5 Ol c Ql
::J 0 ii: u w
::l ::J ~ 0 L- U"l U"l 0 c .c
,\-00 L- C m c N 0) .... 0 C ro C Ol c
.c L-
~g~ U ..., ~g "" ~g "'- N') 0 m ~g L- ~g ::J ~g
",- 0)- ::J
(ij ci c{ c{ ~ c .... ~ ~ ~ Vl ~ ~ ~ 0 c{ ~ ~
c: Q l!l - c Z Z ii: - c 0 0) 0) .c - c c - C L- - C Z
B ~ ~ ::J U U"l Ql Z U"l Ql O!. r-.. '" Ol U"l Ql Z Z Z U"l Ql Z Z Z .c U"l Ql Z Z
c: Ql r-.. ..., 0 r-.. ..., .... N- ::J r-....., ..., r-....., ..., r-.....,
U .. ci u V>Ql L- V>Ql 0 V>Ql C V>Ql ro V>Ql
s;:i:Q. 0.:: m 0.:: L- 0.:: ::J 0.:: 0.::
C .c ::c c
......'5 '0 r: .c ..., 0
g~- .$ ::J Ol 0> N') ci .c ~
lJ ::J (3 Ol ro
::t ~ l!l C1I Vl c 0 C 0> 0 U C C c
0- S ~g L- ~g <:t .... '" ~g ::J ~g Z ~g
OOU L- .c ;:1;- 0)- N- Ql 0 Z;
0::'0 .. ~ c{ c{ u c{ c{ c{ L- c{ c{ ~ c{ c{ c{
Q. ro - c Z Z ..., - C 0> U"l C - C Z Z Z .c - c Z Z Ql - C Z Z Z
. C1I ..., o Ql Z I- o Ql 0 '" r-.. o Ql o Ql Z o Ql
V> r: ..., ....
Q. t) U"l..., ~ U"l..., N- N- U"l..., U"l..., ro U"l...,
u.. C1I 'V>Ql V>Ql ::J V>Ql u. V>Ql V> V>Ql
0::0- E 0.:: 0.:: Vl 0.:: U 0.:: 0.::
.. r: c :;:
Q. L- V>
Ol .... .... N 13 u.
0 c c 0 q .... c c C
L- ~g ~g <:t <:t V> ~g ~g ~g
Q. ",- N') 0) c{ c{ c{ ~ c{ c{ c{ ~
..., ~ c{ c{ 0) <:t N ~
- C Z Z - c - c Z Z Z - c Z Z - c Z
c U"l Ql Z U"l Ql N U"l 0) U"l Ql U"l Ql U"l Ql Z Z
Ql N..., N..., N N- N..., N..., N ...,
L- V>Ql V>Ql V>Ql V>Ql V>Ql
L- 0.:: 0.:: 0.:: 0.:: 0.::
::J
U
C; 0> 0
C C '" r-.. C C C
~g ~g <:t N '" ~g ~g ~g
c{ ~ ~ 0)- N 0 c{ c{ ~ c{ c{ c{ ~ ~ ~
- c Z - c .... U"l r-.. - C Z Z - c Z Z Z - c
o Ql Z Z o Ql U"l N') 0) o Ql Z o Ql o Ql Z Z Z
.... ..., .... ..., N- N- .... ..., .... ..., .... ...,
V>Ql V>Ql V>Ql V>Ql V>Ql
0.:: 0.:: 0.:: 0.:: 0.::
C C .... .... c c 0 0 c
0 0 U"l U"l 0 0 0> 0> 0
~ ~ N N ~ ~ U"l U"l ~
C ~ ~~ C N- N- C ~ c{ ~ c .... .... c ~ ~ ~
Ql Ql U"l U"l Ql Ql r-.. r-.. Ql
..., Z zz ..., 0) 0) ..., z Z z ..., "!. "'- ..., z z Z
Ql Ql Ql Ql Ql
0.:: 0.:: N- N 0.:: 0.::.... .... 0.::
0 0 0 0 0
z z z z z
..., E ..., Vl ..., Vl ..., Vl ...,
E Vl ~ Vl ~ E Vl E Vl E Vl
Vl 0 Vl 0 Vl 0
::JEu ::J Eu ,~ Eu ::J Eu ::J Eu
E ro " E -ro " E ro " E 'iij " E ro "
U Ql Ql U Ql Ql U Ql Ql U Ql Ql U Ql
Ql ..., ~ ..., ..., ...,
L- U L- L- U L- U L- U
a. " Ql Q. " a. " Ql a. " Ql a. " Ql
..., Ql 0' " Ql '0' " Ql 0' " Ql 0' " Ql 0'
..., ..., ..., ..., ...,
c U L- Ql u L- Ql u L- Ql u L- Ql u L-
Ql Qla. Vl QlQ. VlQlQ. ~~a. ~ Qla.
L- 'c- o 'c- o '~ '0-
L- C. C.e~ c.O-ro c.
::J L-13 0 L-13 oL-..., 0 L-13
u a. 0 L- a. 0 ea.o L-a.o L- a. 0
I- a. I- a. I- a. I- a. I-
~ ,~ ~ .~ 0 U"l U"l ~,~ o::r U"l Ol U"l
" U"l N ~ U"l Ol 0\
"- N'l ....- N'l ....
8-~ ~ ~ ~ 8~ .... oi .... 8~ CD oi cD oi
.... N'l U"l .... N'l U"l Ol
U"l2 z z z U"l2 .... N'l_ o::r_ U"l a.> .... N'!. "'t Ol
.... .... -..., .... .... N'l-
~~ ~~ .... a.>
<J'>D:: <J'>
~ ,~ .... U"l CD ~ ,~ " U"l N ~ .~ o::r U"l Ol N'l
N'l U"l CO Ol U"l U"l .... U"l CD "
N'l N'l CD N N'l ~ N'!. N'!. CD Ol
~~ ~- 0')- c5 ~~ co- oi " ~~ N'l Ol N Ol
U"lN'l Ol U"l N'l Ol CD N'l 0 Ol
.... N N'!. .... N N'!. .... ~ o::r_ o::r
~- ~ .... .... ~~ .... .... ~- ~ .... .... N'l-
<J'>D:: <J'>D:: <J'>
~g ~~ ~ ~g ~ ~ ~ ~g ~ ~ ~
8- ~ zz z 8- ~ z z z 8~ z z z
U"l"" U"l"" U"l""
<J'>a.> <J'>a.> <J'>a.>
D:: D:: D::
a. ~g ~g ~g
L-
0
U ~~ <( ~ <( ~ ~ ~ ~ a.>
..., c5~ Z c5~ Z c5~ u
c zz z z 0, z z z c
U"l..., 0, U"l..., U"l...,
a.> N'la.> N'la.> Ol N'la.> ro
E <J'>D:: <J'>D:: <J'>D:: L-
Ol <( :J
a.> <( ~ (J)
Ol 0 ..., c
ro ~ ~
c ~g ~g ~g a.>
ro ~ ...,
~ ~ ro
~ ~ ~ a.> <( <( ~ ~ ~ ~ Ol
<( c5~ ;:,,(. 6~ Z Z a.> 6~ a.>
z z z z ;:,,(. z Z L-
~ U"l..., 0 U"l..., 0 U"l..., Ol
N a.> L- N a.> N a.>
a. co L- Ol
<J'>D:: <J'>D:: co <J'>D:: <(
~ a.>
Ol u a.> ~
:J C U a.>
0 ro c (J)
L- C L- C ro c 0
~ ~g :J ~g L- ~g a.
..., (J) ~ :J ~ <( ~ 0
~ ~ ~ c ~ ~ (J)
0 - c - c S - c Z L-
U"l a.> z z U"l a.> z z U"l a.> z z a.
u "..., x "..., x " ...,
a.><J'>a.> w <J'>a.> <J'>a.>
u D:: a.> D:: w D::
D:: a.>
c D::
ro ~ ~
L- Ol
:J C :J C Ol C
(J) ~g 0 ~g :J ~g
C L- 0
~ <( ~ ~ ~ ~ <( L- ~ ~~
Cii - c Z ..., - c Z ~ - C
L- Oa.> z z ~ o a.> z ..., o a.> z zz
a.> U"l..., U"l..., ~ U"l...,
C <J'>a.> a.> <J'>a.> <J'>a.>
a.> D:: >- D:: a.> D::
Q 0 >-
0
~ a. a.
c c E c E c
ro ~g w ~g ~g
a.> ..., w
c ~ ~ ~ (J) ~ <( ~ ..., ~ ~~
'c - c a.> - c -- (J) - c
U"l a.> z z z 3: U"l a.> z z z a.> U"l a.> z ZZ
ro N..., N..., 3: N...,
~ <J'>a.> ~ <J'>a.> <J'>a.>
D:: D:: ~ D::
;:,,(. ~ '~
L-
0
>-
3: c c c
a.> ~g <( <( ~ ~g ~ <( ~ ~g ~ ~~
z - c Z Z - c -- - c
o a.> z o a.> z z z o a.> z zz
.... ..., .... ..., .... ...,
<J'>a.> <J'>a.> <J'>a.>
D:: D:: D::
C C C
0 0 0
~ ~ ~
c ~ ~~ c ~ ~ ~ c ~ ~~
a.> a.> a.>
..., z zz ..., z z ..., zz
a.> a.> a.>
D:: D:: D::
0 0 0
z z z
(J) ..., (J) ..., (J) ...,
E (J) E (J) E (J)
0 (J) 0 (J) 0
:J U :J Eu :J Eu
E ~ E ro ~ E ro ~
a.> a.> a.> U a.> a.> U a.>
L- ..., L- ..., L- ...,
U U u
a. a.> a. ~ a.> a. ~ a.>
~ '0' ~ a.> '0' ~ a.> '0'
..., ...,
a.> L- a.> u L- a.> u L-
~ a. ~ a.> a. ~ a.> a.
Cii '0'- '0'-
a. a. L- ro a. L- ro
0 ..., 0 a."" 0 a.""
L- 0 L- 0 L- 0
a. I- a. I- a. I-