Item O13 0.13'
J �� BOARD OF COUNTY COMMISSIONERS
County of Monroe ire �f �r�l � � Mayor Heather Carruthers,District 3
The Florida.Keys Mayor Pro Tem Michelle Coldiron,District 2
Craig Cates,District I
David Rice,District 4
Sylvia J.Murphy,District 5
County Commission Meeting
July 15, 2020
Agenda Item Number: 0.13
Agenda Item Summary #7112
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 an
annual premium of $45,423.00, 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, 2020. 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 $45,423.00 and no deductible. This represents an increase of
$5,926.00 (15%) from the current annual premium of$39,497.00. ACE indicated that Aeronautical
premiums have been increasing throughout the market place. The renewal policy effective dates are
7/27/20-7/27/21. The County's risk consultant's letter providing analysis and recommending this
renewal is attached.
PREVIOUS RELEVANT BOCC ACTION: 7/17/19 - 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 $45,423.. This represents an increase of$5,926
(15%).
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Interisk Corporation Recommendation Letter
FINANCIAL IMPACT:
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0.13
Effective Date: 7/19/2020
Expiration Date: 7/19/2021
Total Dollar Value of Contract: $45,423.00
Total Cost to County: $45,423.00
Current Year Portion: approx. $11,355.75
Budgeted: Yes
Source of Funds: Key West Airport O & M
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:
07/15/20 404-63001 - KEY WEST AIRPORT O & M $45,423.00
REVIEWED BY:
Cynthia Hall Completed 06/30/2020 6:22 PM
Bob Shillinger Completed 06/30/2020 6:52 PM
Purchasing Completed 06/30/2020 7:44 PM
Budget and Finance Completed 07/01/2020 8:30 AM
Kathy Peters Completed 07/01/2020 9:31 AM
Board of County Commissioners Pending 07/15/2020 9:00 AM
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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 30,2020
Ms.Maria Slavik,CPM
Risk Administrator
Monroe County
i 111 12"'Street
Suite 408
Key West,Florida 33040
An
Subject: Renewal of Airport Liability Insurance
Dear Maria: u
The County's Airport Liability policy expires on July 27,2020. The policy is currently provided by ACE
Property and Casualty Insurance Company with limits of$100 million. The policy also contains various c
sub-limits. Some of the more notable sub-limits are as follows:
➢ Personal Injury and Advertising $50 million m
➢ Fire Damage $250,000 E
➢ Medical Expense $25,000
➢ Excess Automobile Liability $50 million
➢ Excess Employers Liability $50 million
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It is not believed that any of the above sub-limits materially impacts the protection being purchased by the
County.
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There are no deductibles associated with this policy. The annual premium for the current policy(7/27/19— le
7/2720)is$39,497. An
ACE has agreed to renew the County's Airport Liability policy with terms and conditions consistent with
the expiring policy for$45,423. This represents an increase of$5,926(15%). Aeronautical premiums have
been increasing throughout the market place. Gallagher is stating that this market increase is the result of
the higher premium.
U
Gallagher also submitted an indication from QBE Insurance Company with terms and conditions consistent '
with the expiring policy. Gallagher also sought proposals from Old Republic Insurance Company. Neither
QBE nor Old Republic has not offered a proposal as of yet. The Corona Virus has resulted in insurers
being unable to provide timely proposals. It is highly likely that proposals from QBE and Old Republic
will not be received before the current policy expires. It should be noted that QBE offered a proposal for
the County's 2019/20 policy that was significantly higher than the one offered by ACE.
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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 7/27/20 to 7/27/21.
Please give me a call if you have any questions or wish to discuss this issue in more detail.
Cordially, -�
INTERISK CORPORATION
1 1 P
Sidney G.Webber
CPCU,ARM W
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