Item O08 0.8
t, BOARD OF COUNTY COMMISSIONERS
County of Monroe Mayor Sylvia Murphy,District 5
The Florida Keys l'U � � Mayor Pro Tern Danny Kolhage,District 1
�pw° Michelle Coldiron,District 2
Heather Carruthers,District 3
David Rice,District 4
County Commission Meeting
July 17, 2019
Agenda Item Number: 0.8
Agenda Item Summary #5716
BULK ITEM: Yes DEPARTMENT: Risk Management
TIME APPROXIMATE: STAFF CONTACT: Maria Slavik(305) 295-3178
N/A
AGENDA ITEM WORDING: Approval to accept proposal for renewal of Airport Liability
Insurance from ACE Property and Casualty Ins. Co. through Arthur J. Gallagher & Co. with annual
premium of$39,497.00, and authorization for the Risk Administrator to sign all necessary forms.
ITEM BACKGROUND: Monroe County's airport liability insurance policy with ACE Property
and Casualty Ins. Co. (ACE) expires on July 27, 2019. The proposed renewal policy through ACE
provides the same $100,000,000.00 in liability coverage for airport operations in Key West and
Marathon. ACE agreed to renew the policy with terms and conditions consistent with the expiring
policy with an annual premium $39,497.00 and no deductible. This represents an increase of
$3,592.00 (10%) from the current annual premium of$35,905.00. ACE indicated that several
incidents during the past 12 months, which did not directly involve Monroe County but which the
County was obligated to report to its carrier, has caused the insurer to raise premiums. (For
example, in one incident, a passenger was injured at another airport, flew to Key West, requested
and received further treatment upon disembarkation. This incident was required to be reported to the
carrier.) The renewal policy effective dates are 7/27/19-7/27/20. The County's risk consultant's
letter providing analysis and recommending this renewal is attached.
PREVIOUS RELEVANT BOCC ACTION: 7/18/18 - BOCC approved the current ACE airport
liability insurance policy proposed by Arthur J. Gallagher& Co. insurance broker.
CONTRACT/AGREEMENT CHANGES:
Renew Airport Liablity Insurance with Ace Property and Casualty Ins. Co. through Arthur J.
Gallagher. The proposed annual premium will be $39,497. This represents an increase of$3,592
(10%).
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
ACE Recommendation Letter
Packet Pg. 2877
0.8
FINANCIAL IMPACT:
Effective Date: 7/27/19
Expiration Date: 7/27/20
Total Dollar Value of Contract: $39,497.00
Total Cost to County: $39,497.00
Current Year Portion: $35,905.00
Budgeted: Yes
Source of Funds:
CPI: N/A
Indirect Costs: N/A
Estimated Ongoing Costs Not Included in above dollar amounts: N/A
Revenue Producing: No If yes, amount:
Grant: N/A
County Match: N/A
Insurance Required: N/A
Additional Details:
07/17/19 404-63001 - KEY WEST AIRPORT O & M $39,497.00
REVIEWED BY:
Cynthia Hall Completed 06/28/2019 4:45 PM
Bob Shillinger Completed 07/01/2019 10:45 AM
Maria Slavik Completed 07/01/2019 10:55 AM
Budget and Finance Completed 07/01/2019 10:59 AM
Kathy Peters Completed 07/01/2019 11:24 AM
Board of County Commissioners Pending 07/17/2019 9:00 AM
Packet Pg. 2878
0.8.a
I NTERISK CORPORATION
Consultants 1111 North Westshore Boulevard
Suite 208
Risk Management Tampa, FL 33607-4711
Employee Benefits Phone(813)287-1040
Facsimile (813)287-1041
June 21,2019
Ms.Maria Slavik,CPM
Risk Administrator 311
Monroe County
I I11 1211,Street
Suite 408
Key West,Florida 33040
Subject: Renewal of Airport Liability Insurance
Dear Maria:
The County's Airport Liability policy expires on July 27,2019. The policy is currently provided by ACE
Property and Casualty Insurance Company with limits of$100 million. The policy also contains various
sub-limits. Some of the more notable sub-limits are as follows:
➢ Personal Injury and Advertising $50 million E
➢ Fire Damage $250,000
➢ Medical Expense $25,000
➢ Excess Automobile Liability $50 million w
➢ Excess Employers Liability $50 million
It is not believed that any of the above sub-limits materially impacts the protection being purchased by the
County.
There are no deductibles associated with this policy. The annual premium for the current policy(7/27/18—
7/27/19)is$35,905.00
ACE has agreed to renew the County's Airport Liability policy with terms and conditions consistent with
the expiring policy for$39,497. This represents an increase of$3,592(10%). ACE has cited the number
of incidents the County has reported during the past 12 months as the reason for the increase. While it is
believed that few,if any,of these incidents will result in actual claims ACE believes they justify the higher
premium. The policy requires that all incidents be reported to the insurer as soon as practical. The
incidents were reported as precautionary measures only.
Gallagher also submitted an indication from QBE Insurance Company with terms and conditions consistent
with the expiring policy. QBE's proposed premium was$45,917. Since QBE's premium is higher than the
one being proposed by ACE with no enhancements of coverage,it is recommended that the QBE proposal
be eliminated from further consideration. Gallagher also sought proposals from Old Republic Insurance
Company and Starr Insurance Company. Old Republic declined to submit a proposal and Starr has not
responded.
Packet Pg. 2879
0.8.a
It is believed that ACE's renewal proposal is attractive and it is recommended that the County renew its
Airport Liability Insurance Policy with ACE Property and Casualty Insurance Company,as being proposed
by Arthur J. Gallagher for the policy term 7/27/19 to 7/27/20.
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
C)
Packet Pg. 2880