Item R5 �s R.5
r`,
County of Monroe
�y,4 ' �, "tr, BOARD OF COUNTY COMMISSIONERS
County �a� Mayor Michelle Coldiron,District 2
�1 nff `ll Mayor Pro Tem David Rice,District 4
-Me Florida Keys ) �' Craig cares,District l
Eddie Martinez,District 3
w Mike Forster,District 5
County Commission Meeting
April 21, 2021
Agenda Item Number: R.5
Agenda Item Summary #8085
BULK ITEM: Yes DEPARTMENT: Risk Management
TIME APPROXIMATE: STAFF CONTACT: Maria Slavik (305) 295-3178
N/A
AGENDA ITEM WORDING: Approval to accept Marsh USA proposal and renew property
insurance policies from Landmark American Ins. Co. (Landmark), Hiscox Insurance Co.,
Westchester Insurance Company, Great Lakes, and Velocity Risk Underwriters, and also Boiler and
Machinery Insurance from Hartford Steam Boiler Ins. Co. (HSB), and authorization for the Risk
Administrator to execute all necessary forms.
ITEM BACKGROUND:
The County's Risk Management office has secured a proposal for insurance coverage for the year
beginning May 1, 2021. The proposed coverage includes: 1) wind and flood coverage; 2) property (fire)
coverage; and 3) boiler machinery coverage. This coverage extends to most County buildings except for
those buildings having such limited value that the County has chosen to self-insure.
Marsh USA has submitted their renewal proposal for the County's Property Insurance for the policy term
of 5/1/21 to 5/1/22. While the terms and conditions of the renewal are consistent with the expiring policy,
the structure of the program will be slightly altered. The following displays the new rate structure.
Layer 1 (Includes Named Storm Wind and Flood Coverage)
Insurer Limits Annual Total Layer Total Layer
Provided Premium Limits Premiums
Hiscox Ins. Co. $1,250,000 $242,500
Great Lakes Ins. $2,500,000 $192,500
Co.
Velocity Risk $1,250,000 $312,500 $10,000,000 $1,472,500
Underwriters
Westchester
Surplus Lines $5,000,000 $725,000
Ins. Co.
Layer 2 (Excludes Named Storm Wind and Flood Coverage)
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R.5
Landmark/RSUI $244,937,711 $87,936 $244,937,711 $87,936
Total Program
$ 937711 $
254 1 560 436
This represents an increase of$199,442 (14.7%) in the County's annual premium when compared to the
premium the County paid for the 2020/21 premium. The renewal provides replacement cost property
insurance coverage for County buildings, contents, communication towers and contractors equipment
with a current value of $254,937,711. Coverage for wind and flood losses is limited to $10 million in
excess of the limits provided by the State administered wind program (Citizens) and the National Flood
Insurance Program (NFIP). (The maximum limits under the Citizens program are $1 million per building
and maximum limits under the NFIP are $500,000 per building.)
Also, HSB has agreed to renew the County's Boiler and Machinery coverage for an annual premium of
$13,290. This represents an increase of$1,104 (9.0%). This policy covers the boilers at the jail, which are
necessary for that facility to operate.
PREVIOUS RELEVANT BOCC ACTION: Staff went out for RFP on January 23, 2020, and
only one proposal was received from Marsh USA, Inc., (incumbent). Use of this broker was then
approved by the BOCC. The current policies through Marsh USA, Inc. expire on May 1, 2021.
CONTRACT/AGREEMENT CHANGES:
Marsh USA proposed Property, Boiler and Machinery Insurance with Landmark, Westchester, Great
Lakes, Hiscox, Velocity and Hartford Steam Boiler Ins. Co. for annual premium of$1,560,436. This
represents an increase of$238,046 (14.7%) HSB proposed Boiler and Machinery Ins. for an annual
premium of$13,290. This represents an increase of$1,104 (13.4%)
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Interisk Corporation Recommendation Letter
FINANCIAL IMPACT:
Effective Date: 5-1-22
Expiration Date: 5-1-23
Total Dollar Value of Contract: $1,573,726.00
Total Cost to County: $1,573,726.00
Current Year Portion: $1,573,726.00
Budgeted: Yes
Source of Funds: Internal Service Funds/Primarily Ad Valorem
CPI: N/A
Indirect Costs: N/A
Estimated Ongoing Costs Not Included in above dollar amounts:
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R.5
Revenue Producing: No If yes, amount:
Grant: N/A
County Match: N/A
Insurance Required: Yes
Additional Details:
04/21/21 503-08502 - RISK MGMT INSURANCE $1,573,726.00
REVIEWED BY:
Maria Slavik Completed 04/05/2021 1:20 PM
Cynthia Hall Completed 04/06/2021 8:47 AM
Bob Shillinger Completed 04/06/2021 10:27 AM
Purchasing Completed 04/06/2021 10:28 AM
Budget and Finance Completed 04/06/2021 10:35 AM
Liz Yongue Completed 04/06/2021 12:12 PM
Board of County Commissioners Pending 04/21/2021 9:00 AM
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R 5.a
Marsh USA has submitted their renewal proposal for the County's Property
Insurance for the policy term of 5/1/21 to 5/l/22. While the terms and conditions of
the renewal are consistent with the expiring policy, the structure of the program will
be slightly altered. The following displays the new structure.
Layer 1 (Includes Named Storm Wind and Flood Coverage)
Annual Total Layer Total Layer
Insurer Limits Provided 0
Premium Limits Premiums
Hiscox Ins. Co. $1,250,000 $242,500
Great Lakes Ins. $2,500,000 $192,500
Co.
Velocity Risk T
Underwriters $1.250.000 $312,500 $10,000,000 $1,472,500 0
Westchester
Surplus Lines $5,000,000 $725,000
Ins. Co. CL
Layer 2 (Excludes Named Storm Wind and Flood Coverage)
Landmark/RSUI $244,937,711 $87,936 $244,937,7111 $87,936
Total Program
$254,937,711 $1,560,436
0
m
0
0
0
This represents an increase of $199,442 (14.7%) in the County's annual premium
when compared to the premium the County paid for the 2020/21 premium. The
renewal provides replacement cost property insurance coverage for County 0
buildings, contents, communication towers and contractors equipment with a current
value of$254,937,711. Coverage for wind and flood losses is limited to $10 million
in excess of the limits provided by the State administered wind program (Citizens)
and the National Flood Insurance Program (NFIP). (The maximum limits under the
Citizens program are $1 million per building and maximum limits under the NFIP
are $500,000 per building.)
Hartford Steam Boiler (HSB) has also agreed to renew the County's Boiler and
Machinery coverage for an annual premium of$13,290. This represents an increase
of$1,104 (9.0%).
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