Item C15
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: December 13-14-2000
Bulk Item: Yes X No
Division: Management Services
Department: Administrative Service'Risk Management
AGENDA ITEM WORDING: Accept Proposal from Arthur J. Gallagher to provide Airport Errors &
Omisssions Insurance at an annual premium of$7,615. This is a 14% savings over last year's premium.
ITEM BACKGROUND: Current Airport Errors & Omissions limits are $2,000,000, annual premium
$8,883.
PREVIOUS RELEVANT BOCC ACTION: Current policy expires 12/20/00.
STAFF RECOMMENDATION: Accept Arthur J. Gallagher Proposal.
TOTAL COST: $7,615
COST TO COUNTY: $7,615
REVENUE PRODUCING: Yes No X AMOUNT PER MONTH YEAR
APPROVED BY: County Atty _ OMB/Purchasi~ Risk Management \.~. ,\( ,
DIVISIONDIRECTORAPPROVAL~ ~~
BUDGETED: Yes X No
James L. Roberts
DOCUMENTATION: Included: X
To Follow: _ Not Required: _
DISPOSITION:
Agenda Item #: Ul5
O!!~,rv ~o~~~E
(305) 294-4641
TO:
(~.,---- BOARD OF COUNTY COMMISSIONERS
. ,,.. ~ MAYOR George Neugent, District 2
,- Mayor Pro tern Nora Williams, District 4
Charles "Sonny" McCoy, District 3
Dixie Spehar, Districct 1
Murray Nelson, District 5
MEMORANDUM
James L. Roberts
County Administrator
Sheila Barker ~ ~ .' IV
Director of ~ator Services
THRU:
FROM:
Wayne Robertson c-::>
~ v-,
Risk Manager ' \
DATE:
11/29/00
RE:
County Airports Errors & Omissions Coverage
I concur with Interisk Corporation's recommendation for this renewal policy to
be placed through United National Insurance, as submitted by A.J. Gallagher & Co.,
for the 2000-2001 policy period. This represents a 14% savings over last year's premium,
which is unusual in today's hardened insurance market. The coverages are comparable to our
existing policy. This was the lowest ofthe 4 bids received.
Thank you.
11/28/2666 23:~6
8132871~41
INTERISK
PAGE 62
INTERISK CORPORATION
Conll1}l8nbl
1111 North Wetar.hore Boulevard
Suice 208
T Mlp&, FL aa607 -4 711
Phone (818) 287-1040
Facaimilct (813) 281~1041
Riltk Manapllent
Emplv}"ee Benelira
November 29, 2000
Mr. Wayne Robertson
Risk Manager
Monroe County
5100 College Road. Room 205
Key West, Florida 33040
trn.._IH'f!tl bll f~ fJfJ5j 2924564
Re: Airport PIlblk 0jJIdsb RenftWl/
Dear Wayne:
The County's Airpon Public Officials illSUl'lJlC:e expira on I>ecrn1ber 20, 2000. To ~ tile
Plorida League of Cities (the iDcumbent aFDt) c:fbts. both Arthur J. Gallagher and Marsh USA. Inc.
\Wre lalucsted to submit aI~ pmposaJs ror the 200012001 policy year.
The Florida Lague subnrilted three altematives; one ftom the incambem insurer (Corqis T1IIU1'lPICe
CoIIIJIUIY) ancll1lO from EvaDsten Insurance Compeny. Gallagher submitted a I"'~ from United
National Tnsunnc:e Company and Marsh submitted a proposal from National Union lUUl'llftCe Company.
AlJ of the c:ompanies ~ enjoy a faworabIe rating from A.M. Besr and Compeny, the te.ding
evaluator of iJlSUl3Jl<:e C.'OIIIpIny operations,
The proposals nom Coqis, United National and National Union essentially contain the same policy
terms aDd. CODditions with the only notabJe exception bein, thal Corecis is including the cost to defend
claims witbin the policy limitS while United. National aDd NatiODal UDioa' s dci:DIc of daims win DOt
reduc;e the a:anount available tor the pl)'mCDt of daims. The tIuec iDsutas o<<=d limill of 52 million per
occum:nce, subject:o a memion 01'550,000. Tbis is CODSisreDt with !be Coumy's aD'J'C!Ilt progmm.
Evamten IDsunmce CmDpIUIy's two poposaIs also offen=d limits of $2 milliCIII, baM:w:r E\'lIIIIIeD ...
agm:able to ~ die County'S retention to SlO,OO(t The diff~ beh\a:n BvmIrcn's nw opIioDs
WB5 ODe induded the ddense COStS within the policy limits while the othtr did DOl 11Ie aptioIl with
defense axns oul5ide the policy limits was used in this 8D8lysU siDc:e it mare c:loIely IIIIICbed *
proposals lMIbuUttcd by tbe other agents.
The attadIed lIpIadshca 8D8Iysis displays the IDIUor features Of each prapouJ and COIIIpbd tbl::m With
tile aarmn pt08I'IIIL
Based on Us f1Ivonb1e Ion expcricnoe. it is bellC\lal tbal lbe UDir&d National JmlPOUl _ whnri~ by
Arthur J. GalI8gJ= MJUld best sene the Cowu;y for the UP:OmiD8 yc8r. ~ UJdial NatioGal'$
11/28/2888 23:86
8132871 841
INTERISK
PAGE e3
Mr. Wayne R.obertBoo
Airport Public OfticiaIa Jlenewa.l
Pace 2
premium of 57,615 to the Evansten premium of 510,457, the Couaty could raIize a saviop at S2,842
which equateS to 21%:
Both the CoIegis aDd NatioDaI Union prupoals were eliminated from c:onsideration because of C05t.
Based 011 tile PIOPOSlIls -mitral. it is 1'f'D'III~ that Monrae Counly tela die United NatioaaI'.
program as sabmined by Althur J. GaUagber (or ita AiJport'II Public OJIldaJ .IDaDrancc for the 2000I2001
policy yair.
As a1way5. please fee! flee to gM me a call if}'OU baw any quatiODl,
CmdiaUy,
INTERlSK CORPORATION
~~
SidneyG. Webber
CPCU, ARM
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