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Item C30Bulk1tem: Yes X No Department Risk MOM AGENDA ITEM WORDING: Approval to accept proposal from Arthur L Galla&er for General an? Professional Liability insurance fbr Bayshore Manor —AssI Llvmg Facility w1th Colony Insurance Company at a cost of $12,955.63, with staff signing the necessary forms. rrEM BACKGROUND: Coverage is for General I.Jability and Wrongftd ActsNicarious Liability for abuserequired to maintain our State I! Florida Assisted Living FacilityLicense.Also covers claims a alleging =1 1 +scaW and/Or . I1 ♦ • Physical 1 abuse. 110 current premium .i i REVELANT BOCC ACTION: renewal of the policy. CONTRACT/AGREEMENT iability Insurance withColony Insurance Company ♦ r the • 1 i beginning . �.... . with premium _ of ' 55.63 which • '.: ♦ aa FHCF Assessmentfeeof • •'. and ♦ 1 Inspection Feeof $205.00. This represents reduction of 11 TOTAL COST: 6' BUDGETED: Yes —2L No COST is iUNTY: $12,955.63 SOURCE OF FUNDS:bggMd i REV'FAM PRODUCING: Yes No AMOUNT PER MONTH— Year A Risk Managementj "PROVED BY: County A*y0M]3 DOCUMENTATION: I1 /;• X NotRequired DISPOSITION: AGENDA CONTRACT SUMMARY Contract with: Arthur J. Gallagher & Co Contract # Effective Date: 4/30/14 Expiration Date: 4/30/2015 Contract Purpose/Description: Ba shore Manor Assisted Living Facility insurance policy renewal. Contract Manager: Maria Slavik 3178 Risk Management #7 (Name) (Ext.) (Department/Stop #) for BOCC meeting on April 16, 2014 Agenda Deadline: 4/1/2014 CONTRACT COSTS Total Dollar Value of Contract: $ 12,955.63 Current Year Portion: $ 18,476.11 Budgeted? Yes® No ❑ Account Codes: 503-08502-530-450- Grant: $ County Match: $ ADDITIONAL COSTS Estimated Ongoing Costs: $ /yr For: (Not included in dollar value above) (ee. maintenance_ ntilitiec ianitnrial calariac atr 1 SM& Division Director Risk Management O.M.B./Purchasing County Attorney 4T14 Comments: vivin r unn Revlsea L/6 //u 1 muF ll1 CONTRACT REVIEW Changes Date Out Needed Revie wer Yes❑ No �1 Yes❑ No Yes❑No© Yes❑ No Consultants Risk Management Employee Benefits March 26, 2014 Ms. Maria Slavik, CPM Risk Administrator Monroe County 1100 Simonton St. Suite 268 Key West, Florida 33040 1111 North Westshore Boulevard Suite 208 Tampa, FL 33607-4711 Phone (813) 287-1040 Facsimile (813) 287-1041 Subject: Renewal of Bayshore Manor's General Liability and Professional Liability Insurance Dear Maria: Bayshore Manor's General and Professional Liability insurance policy expires on April 30, 2014. Arthur J. Gallagher serves as the County's insurance agent for this coverage. Gallagher has submitted a proposal for the renewal of this policy which has been reviewed in detail. Currently, Colony Insurance Company is providing the coverage with Per Occurrence limits of $1 million and a $3 million Annual Aggregate. Colony enjoys a favorable rating from the A.M. Best Company, the leading evaluator of insurance company operations. Coverage is provided on a "Claims Made" basis with a Retroactive Date of April 16, 2004 for the General Liability coverage and a Retroactive Date of April 16, 2003 for the Professional Liability coverage. Claims Made policies provide coverage for claims that occur after the Retroactive Date and are first reported to the insurer during the policy period. This compares to policies written on an "Occurrence" basis that provides coverage for claims that occur during the policy period and do not contain a Retroactive Date. The annual premium of the expiring policy is $18,476.11. Gallagher has proposed renewing the policy with Colony with the same terms and conditions for an annual premium of $12,955.63 which includes a FHCF Assessment fee of $163.63 and an Inspection Fee of $205.00. This represents a reduction of $5,520.48 (nearly 30%) in the County's annual premium when compared to the 2013/14 annual premium. It should be noted that Colony has restructured their policy for the 2014/15 policy term. This restructuring has not removed any coverages and was done to clarify the intent of the policy and to make the policy easier to read. Colony is also stating that the restructuring of the policy will offer the County with enhanced coverages. None of the enhancements are viewed as being significant. Gallagher also submitted the County's program to Great American Insurance Company, Lloyds of London, and One Beacon Insurance Company. Great American declined to submit a proposal citing that they could not be competitive with Colony's pricing. Lloyds submitted a formal proposal but their pricing and terms were not as favorable as Colony. One Beacon submitted a non-bindable proposal that was priced significantly higher than Colony's proposal. Few insurers have the ability and desire to provide insurance for Assisted Living Facilities and even fewer are willing to provide insurance for smaller facilities. Bayshore Manor has 16 beds. Based on the limited availability of the desired coverages, the protection being offered by Colony and the fact that the Colony's program has served the County well, it is recommended that Monroe County renew Bayshore's General and Professional Liability insurance with Colony Insurance Company as proposed by Arthur J. Gallagher for the period April 30,2014 to April 30,2015. Please find my formal recommendation letter confirming this. Please give me a call if you have any questions or wish to discuss this issue in more detail. Cordially, INTERISK CORPORATION Sidney G. Webber CPCU, ARM CC: Teresa Aguiar