Item P6County of Monroe
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BOARD OF COUNTY COMMISSIONERS
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Mayor David Rice, District 4
IleOI1da Keys
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Mayor Pro Tem Sylvia J. Murphy, District 5
Danny L. Kolhage, District I
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George Neugent, District 2
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Heather Carruthers, District 3
County Commission Meeting
April 19, 2018
Agenda Item Number: P.6
Agenda Item Summary #4059
BULK ITEM: Yes DEPARTMENT: Risk Management
TIME APPROXIMATE: STAFF CONTACT: Maria Slavik (305) 295 -3178
N/A
AGENDA ITEM WORDING: Approval of the purchase of a General and Professional Liability
Insurance policy with Lloyds of London /Greenhill Insurance Company for Bayshore Manor, and for
the Risk Administrator to sign all necessary forms.
ITEM BACKGROUND:
The recommended Lloyds of London /Greenhill Ins. Co. insurance policy provides General and
Professional Liability and Wrongful Acts /Vicarious Liability coverage as required for the County to
maintain a State of Florida Assisted Living Facility License and also covers claims alleging sexual
and /or physical abuse at Bayshore Manor. Lloyds of London is not an actual insurer. Greenhill is one
Lloyds's syndicates. A very limited number of insurers offer this unique coverage, terms and
conditions. This is a policy which due to the terms and conditions required by the County are
exclusive in the market and thus not benefitted by the competitive bidding procedures. The current
policy annual premium plus fees with Colony Ins. Co. is $16,034.00. Colony has discontinued
offering coverages for Assisted Living Facilities. The recommended new quote and policy with
Greenhill has no fees and an annual premium of $13,924.00 with no deductible. All of the insurers
approached declined to offer a proposal with the exception of Lloyds of London /Greenhill.
Attempts to locate another alternative, comparable, qualifying insurance policy at a lower cost has
been unsuccessful or the costs and terms were not as favorable for the County.
Due to the unique terms, conditions and specific coverage required by the County in this
circumstance the purchase of this exclusive insurance is exempt from competitive bidding
procedures pursuant to MCC Sec. 2- 347(e)(5)(g) and County Purchasing Policy Chapter 10. The
County's consultant's letter recommending the Lloyds of London /Greenhill policy is attached.
PREVIOUS RELEVANT BOCC ACTION: The BOCC approved renewals of the prior
equivalent Colony Ins. Co. insurance policy on 4/16/14, 4/15/15, 4/20/16 and 4/12/17.
CONTRACT /AGREEMENT CHANGES:
Provides an annual policy for coverage period effective 4/30/18 to 4/30/2019. Premium of
$13,924.00 and no fees represents a decrease of $2,110.00 (13 %) from the prior renewal of this
policy.
STAFF RECOMMENDATION: Approval of the purchase of Lloyds of London /Greenhill policy
for Bayshore Manor and for the Risk Administrator to sign all necessary forms.
DOCUMENTATION:
Interisk Recommendation Bayshore Manor insurance
FINANCIAL IMPACT:
Effective Date: 4/30/18
Expiration Date: 4/30/19
Total Dollar Value of Contract: $13,924.00
Total Cost to County: $13,924.00
Current Year Portion: $16,034.00
Budgeted: Yes
Source of Funds: Internal Service Fund /Primarily Ad Volorem
CPI: N/A
Indirect Costs: N/A
Estimated Ongoing Costs Not Included in above dollar amounts: N/A
Revenue Producing: No
Grant: N/A
County Match: N/A
Insurance Required: N/A
Additional Details:
If yes, amount:
05/01/18 503 -08502 - RISK MGMT INSURANCE
$13,924.00
REVIEWED BY:
Maria Slavik
Completed
04/02/2018 3:18 PM
Chris Ambrosio
Completed
04/02/2018 3:55 PM
Bob Shillinger
Completed
04/02/2018 4:56 PM
Budget and Finance
Completed
04/02/2018 4:57 PM
Kathy Peters
Completed
04/03/2018 1:30 PM
Board of County Commissioners
Pending
04/19/2018 9:00 AM
I NTERISK CORPORATION
Consultants
Risk Management
Employee Benefits
March 20, 2018
Ms. Maria Slavik, CAM
Risk Administrator
Monroe County
1111 12` Street
Suite 408
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, 2018. Arthur J.
Gallagher serves as the County's insurance agent for this coverage.
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 30,
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 $16,034.00.
Prior to the initiation of the renewal process Colony advised Gallagher that they are no longer offering
General /Professional Liability coverage for Assisted Living Facilities.
Gallagher presented the County's account to the following insurers:
➢ Lloyds of London/Greenhill
- The Doctors Company
%- Lloyds of London/Hiscox
➢ Crum & Forster Insurance Company
r James River Insurance Company
➢ Huniersure LLC
All of the insurers Gallagher approached enjoy a favorable rating from the A.M. Best Company. It is
believed that the insurers Gallagher approached represent the majority of insurers who have the desire and
ability to provide the insurance coverages for Bayshore Manor.
All of the insurers approached by Gallagher declined to offer a proposal with the exception of Lloyds of
London/Greenhill. The insurers that declined to offer did so because they do not offer coverage for
Assisted Living Facilities in Florida or could not compete with the pricing and terms of the expiring policy.
It should be recognized that Lloyds of London is not an actual insurer, They are comprised o[insurance
syndicates that provide the actual insurance coverage- Greenhill is one o[ Lloyds' syndicates.
Lloyds of London/Greenhill has offered a propoNal with coverages comparable to the County's expiring
coverage for un annual premium o[$\3.g24.00. This represents u decrease ln the County's premium of
$2.||U(|3%) when compared to the expiring premium.
VYNlc i| would have been prcUcrub|u for the County to receive multiple options m consider and select the
option that would serve the County the best, Lloyds or London/Greenhill has offered to provide the
County's coverage with terms and conditions that are comparable to the expiring coverages for a cost lower
than what the County paid for their 20|7/|8policy. ltio therefore recommended that Monroe County
select the proposal from Lloyds of London/Greenhill for Bayshore Manor's General and Professional
Liability coverage for the April 30, 2018 to April 30, 2019 policy term as being proposed by Arthur J.
Gallagher.
Since 8oyd`ore Manor's coverage is provided ono Claims Made basis, it iy critical that any incidents that
may |auU to u claim hx reported m Colony before the current policy expires.
Please give muu call i[ you have any questions or wish m discuss this issue in more detail.
[NTE8ISK CORPORATION
Sidney G.Webber
CPCU, ARM