Item P15 P.15'
J �� BOARD OF COUNTY COMMISSIONERS
County of Monroe ire �f �r�l � � Mayor Heather Carruthers,District 3
The Florida Keys m�� �r ai�] 1 Mayor Pro Tem Michelle Coldiron,District 2
Craig Cates,District I
David Rice,District 4
Sylvia J.Murphy,District 5
County Commission Meeting
April 15, 2020
Agenda Item Number: P.15
Agenda Item Summary #6755
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 General and Professional Liability
Insurance policy with American Alternative Insurance Corporation for Bayshore Manor, and for the
Risk Administrator to sign all necessary forms.
ITEM BACKGROUND: The recommended American Alternative Insurance Corporation
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.. 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 with no fees with
American Alternative Ins. Co. is $8,092.00. The recommended new quote and policy with
American Alternative Insurance Corporation has no fees and an annual premium of $8,417.00 with
$2,500 deductible/SIR. 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 American Alternative Insurance Corporation
policy is attached.
PREVIOUS RELEVANT BOCC ACTION: The BOCC approved renewal of the prior equivalent
Colony Insurance Co.., insurance policy on 4/16/14, 4/15/15, 4/10/16 and 4/12/17. The BOCC
approved Lloyds of London/Greenhill insurance policy on 4/19/18. The BOCC approved American
Alternative Insurance Corporation policy on 4-17-19.
CONTRACT/AGREEMENT CHANGES:
Provides an annual policy for coverage period effective 4/30/20 to 4/30 2021. Premium of
$8,417.00 and no fees represents an increasee of$325.00 (4%) from the prior renewal of this policy.
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P.15
STAFF RECOMMENDATION: Approval to purchase from American Alternative Insurance
Corporation policy for Bayshore Manor and for the Risk Administrator to sign all necessary forms.
DOCUMENTATION:
Interisk Recommendation Letter GL and Professional Renewal Bayshore
FINANCIAL IMPACT:
Effective Date: 4-30-2020
Expiration Date: 4-30-2021
Total Dollar Value of Contract: $8,417.00
Total Cost to County: $8,417.00
Current Year Portion: $8,092.00
Budgeted: Yes
Source of Funds: Internal Service Fund/Primarily Ad Valorem
CPI: N/A
Indirect Costs: N/A
Estimated Ongoing Costs Not Included in above dollar amounts: N/A
Revenue Producing: N/A If yes, amount:
Grant: N/A
County Match: N/A
Insurance Required: N/A
Additional Details: $8,417/year,with a $2,500 per claim deductible.
04/15/20 503-08502 - RISK MGMT INSURANCE $8,417.00
REVIEWED BY:
Cynthia Hall Completed 03/31/2020 1:20 PM
Bob Shillinger Completed 03/31/2020 1:47 PM
Purchasing Completed 03/31/2020 2:05 PM
Budget and Finance Completed 03/31/2020 3:03 PM
Kathy Peters Completed 03/31/2020 3:39 PM
Board of County Commissioners Pending 04/15/2020 9:00 AM
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P.15.a
InteriskCorporation Risk Mgt.&Employee Benefits
Consultants
1101 Red Maple Circle N.E.,St. Petersburg, Florida 33703-6318 — telephone: 813-287-1040
www.interisk.net
March 30,2020
Ms.Maria Slavik,CPM c
Risk Administrator
Monroe County
i 111 1211,Street
Suite 408
Key West,Florida 33040 c
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 30,2020. Arthur J.
Gallagher serves as the County's insurance agent for this coverage. o
Currently,American Alternative Insurance Company is providing the coverage with a Per Occurrence
limits of$1 million and a$3 million Annual Aggregate. American Alternative enjoys a favorable rating
CL
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$8,092.
c
The only insurer submitted by Gallagher was from American Alternative Insurance Company. They
indicated that they submitted the account to 9 different insurers. The only proposals received from these
insurers were indications and not a formal quote. None of these indications were competitive with the
premium being offered by American Alternative. c
American Alternative has offered to renew Bayshore's coverage with terms and conditions consistent with
the expiring policy for an annual premium of$8,417.00. This represents an increase in the premium of
$325 (4%). �
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P.15.a
It is recommended that the County accepts the proposal from American Alternative Insurance Corporation
for their Professional/General Liability coverage for Bayshore Manor as being proposed by Arthur J.
Gallagher for the policy term of April 30,2020 to April 30,2021.
Please give me a call if you have any questions or wish to discuss this issue in more detail.
0
Cordially,
m
INTERISK CORPORATION c
Sidney G.Webber
CPCU,ARM
CL
c
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Packet Pg. 2530