Item C19BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: September 17, 2014 Division: Empl9yee Services
Bulk Item: Yes X No Departinent: Risk Management
AGENDA ITEM WORDING: Approval to accept proposal for Renewal from Travelerns Casuali
and Surety Company of America through Arthur J. Gallagher for Crime Insurance at a cost of
h a
$13,731.39 for a 3 year premium and can be paid in annual installments of $4,577.13, witstaff
signing the necessary forms.
ITEM BACKGROUND: Provides $1 million in Employee Dishonesty and Theft insurance coverage.
The policy contains a $25,000 deductible. Effective date 10/l/14-10/l/17.
PREVIOUS REVELANT BOCC ACTION: N/A
CONTRACT/AGREEMENT CHANGES: Renew the Crime Insurance with Travelers Casualty and
Surety Company of America through Arthur J. Gallagher. The proposed three year premium has
increased by less than I %.
STAFF RECOMMENDATIONS: Approval to accept proposal for Renewal from Travelers
Casualty and Surety Company of America at a cost of $13,731.39 for 3 years.
TOTAL COST: 113 131.39 INDIRECT COST: BUDGETED:Yes X No
COST TO COUNTY: $13,731.39 SOURCE OF FUNDS:- Internal Service Fund
Primarily Ad Valorem
REVENUE PRODUCING: Yes F PER Year
tty 0 A
APPROVED BY: County A Risk Management X
DOCUMENTATION: Included X To Follow Not Required
FloISPOSITION: AGENDA ITEM #
Revised 2/27/01
1 • • • :•..� • • •3181 •
CONTRACT SUMMARY
Contract with: Arthur J. Gallagher & Co
Contract #
Effective Date:
10/1/2014
Expiration Date:
10/1/2017
Contract Purpose/Description:
Crime Insurance
Contract Manager: Maria Slavik
3178
Risk Management #7
(Name)
(Ext.)
(Department/Stop #)
for BOCC meeting on 9/17/2014
Agenda Deadline: 9/2/2014
CONTRACT COSTS
Total Dollar Value of Contract: $ 13,731.39
3yr
Budgeted? Yes® No ❑
Grant: $
County Match: $
Current Year Portion: $ $13,668.27
premium
Account Codes: 503-08502-530-450-
ADDITIONAL COSTS
Estimated Ongoing Costs: $ /yr For:
(Not included in dollar value above) (eu_ maintenaneP ntilitipm ;ani
Changes
ate In Needed Reviewer
Division Director g (q Yes® Noj
Risk Management Yes® No —
O.M.B./Purc sing `6 �2- ) I Yes® No❑ .
County Attorney Yes® No,6ff
Comments:
Date Out
OMB Form Revised 2/27/01 MCP 0
WULM=
I;un# 9=11=1
August 18, 2014
Ms. Maria Slavik, CPM
Risk Administrator
Monroe County
1100 Simonton St.
Suite 268
Key West, Florida 33040
Subject: Renewal of Crime Insurance
11 North Westshore Boulevard
Suite 208
Tampa, FL 33607-4711
Phone (813) 287-1040
Facsimile (813) 287-1041
The County's Crime policy expires on October 1, 2014. Travelers Casualty and Surety Company of
America currently provides the policy that includes the following coverages, limits and deductibles.
. Coverage
Limits
Deductible
ETOloyee Dishonesty
$1,000,000
Theft
$1,000,000
$25,000
Claim Expense
$5,000
None
The current policy was provided on a 3 year term with a total premium of $13,668.27. The premium was
paid in annual installments of $4,556.09.
Travelers enjoys a favorable rating from the A.M. Best company, the leading evaluator of insurance
company operations. Arthur J. Gallagher serves as the County's agent for this policy.
Gallagher has submitted renewal proposals from two different insurers. The first was Travelers and the
second was from Hiscox Insurance Company. lEscox also enjoys a favorable rating from the A.M. Best
Company.
Each proposal will be discussed individually.
Travelers Casualty and &M Comganl! ofAnserica
Travelers has agreed to continue offering the County's Crime insurance with terms and conditions
consistent with the current policy. They have offered a 3 year policy with annual installments of $4,577.13
which amounts to a 3 year premium of $13,731.39. This represents an increase in the County's 3 year
premium of $63.12 (less than 1%). The increase in the annual installments amounts to $21.04.
Hiscox Insurance Conran. Inc.
Hiscox offered a I year proposal with terms and conditions consistent with the County's current policy and
those being offered by Travelers. They proposed an annual premium of $5,505.66.
It is recommended that Monroe County renew its Crime insurance with Travelers Casualty and Surety
Company of America for the 3 year term of 10/1/14 to 10/1/17 as being proposed by Arthur J. Gallagher.
The reasons for this recommendation are as follows:
1. Travelers is proposing a lower premium.
2. Travelers is offering a 3 year policy that will reduce the County's administrative burden for this
coverage.
3. Travelers has served the County well in the past Typically it is not in an organization's best
interest to change insurers unless there is dissatisfaction with the insurer or a premium reduction
amounting to 10% or more can be realized.
Please give me a call if you have any questions or wish to discuss this issue in more detail.
Sidney G. Webber
CPCU, ARM
CC: Teresa Aguiar