HomeMy WebLinkAboutItem C19BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: October 19,
2011
Division: Employee
Services
Bulk Item: Yes X
No _
Department: Employee
Benefits
Staff Contact Person/Phone#:Maria Gonzalez X4448
AGENDA ITEM WORDING: Approval to renew Specific Excess Worker's Compensation Insurance
from Star Insurance Company of Brown & Brown Insurance for an annual premium of $190,444
(unauditable) with a self -insured retention of $500,000 for the period of October 1, 2011 to September
30, 2012.
ITEM BACKGROUND: Policy provides statutory Workers' Compensation benefits in excess of the
County's self -insured retention. In addition, coverage is provided for bodily injury claims brought by
employees which are not classified as workers' compensation claims. This policy will be re -bid in 2012 in
accordance with purchasing policies and procedures. The renewal represents an increase of $564 (<1%) which
is fully attributable to the State increasing its Hurricane Catastrophic Fund assessment.
PREVIOUS REVELANT BOCC ACTION: In 2009 RFP distributed in accordance with purchasing
guidelines with 11 bids received. The proposal submitted by Star Insurance Company through Brown
& Brown with a $500,000 retention best serves Monroe County and was approved by the BOCC.
CONTRACT/AGREEMENT CHANGES: Annual premium of $190,444 for the period of October
1, 2011 to September 30, 2012.
STAFF RECOMMENDATIONS: Approval.
TOTAL COST: $190,444 INDIRECT COST: BUDGETED: Yes X No
Internal Service Fund
COST TO COUNTY: $190,444 SOURCE OF FUNDS: Primarily Ad Valorem
REVENUE PRODUCING: Yes _ No X AM O NT PER MONTH Year _
APPROVED BY: County Atty OMB/Purc asing Risk Management
DOCUMENTATION: Included X To Follow Not Required
DISPOSITION:
Revised 2/27/01
AGENDA ITEM #
M —11 c TY $4Ai1W OR €> ? i'fY
CONTRACT SUMMARY
Contract #
Contract with: Star Insurance Effective Date:October 1, 2011
Expiration Date: September 30, 2012
Contract Purpose/Description:Approval to renew Specific Excess Workers' Compensation
Insurance.
Contract Manager: Maria Gonzalez
(Name)
for BOCC meeting on October 19,201
4448 Employee Benefits/Stop 41
(Ext.) (Department)
Deadline:
CONTRACT COSTS
Total Dollar Value of Contract: $190,544.00 Current Year Portion: $189,880
Budgeted? Yes® No ❑ Account Codes: 501-07502-530450- -
Grant: $
County Match: $
ADDITIONAL COSTS
Estimated Ongoing Costs: $ /yr For:
(Not included in dollar value above) (eg. maintenance, utilities, janitorial, salaries, etc.
CONTRACT REVIEW
Changes Date Out
ate In Needed Reviewer
Division Director 11 Yes❑ No[� Q
Risk ManageSntYes[:]No❑,/�O.M.B./Purcmg �' �`t� Yes❑ No[;] �c�.,,.t (,�,;,q-21) �l
County Attorney q 2(v �t Yes❑ NoEO// q- 26 -l1
Comments:
umts corm Kevisect yl i tlyJ mutj #1
I NTERISK CORPORATION
Consultants
Risk Management
Employee Benefits
September 14, 2011
Ms. Maria Z. Fernandez -Gonzalez
Sr. Benefits Administrator
Monroe County Board of County Commissioners
1100 Simonton Street, Suite 2-268
Key West, Florida 33040
Re: Renewal of Excess Workers' Compensation Insurance
Dear Maria:
1111 North Westshore Boulevard
Suite 208
Tampa, FL 33607-4711
Phone (813) 287-1040
Facsimile (813) 287-1041
The County's Excess Workers' Compensation Insurance policy expires on October 1, 2011.
Coverage is currently provided by the Star Insurance Company with Brown and Brown Insurance
Agency serving as the agent. As an authorized Workers' Compensation self -insured, the County
must assume the first $500,000 of each claim with Star providing the balance of the payment of
benefits as prescribed by Florida Statute § 440. In addition, the policy provides $1 million of
coverage for claims that appear to be Workers' Compensation claims but for various reasons fall
outside the purviews of the provisions of FS 440. These claims are commonly referred to as
Employers' Liability claims.
The County's coverage is actually provided on a General Liability form that has been endorsed to
provide Workers' Compensation and Employers' Liability coverage. This approach was required
because of the way Star has filed its coverage forms with the State of Florida. This does not
impact the coverage the County is purchasing. The County purchases separate General Liability
coverage and it is not anticipated that the Star policy will ever be required to pay a General
Liability claim as the program is currently structured. The current annual premium of the Star
program is $189,880 and is not subject to audit based on the County's payroll.
Star has offered to renew the County's Excess Workers' Compensation policy with terms and
conditions that are consistent with the current policy for an annual premium of $190,444. This
reflects a premium increase of $564 (<1%) compared to the premium the County paid for the
2010/11 policy. The entire amount of the increase is attributable to the State of Florida
increasing its Hurricane Catastrophic Fund assessment from 1 % to 1.3%. Effectively Star has
agreed to renew the County's coverage for no increase in premium.
Star's renewal proposal is viewed as being attractive and it is recommended that the County
renew its Excess Workers' Compensation insurance with the Star Insurance Company as
proposed by the Brown & Brown Insurance Agency for the 2011/12 policy year.
As always, if you have any questions or concerns, please do not hesitate to call.
Cordially,
INTERISK CORPORATION
Sidney G. Webber
CPCU, ARM
Cc: Teresa Aguiar