Item U01 U.1
County �� � .�� �y,4 ' �, "tr, BOARD OF COUNTY COMMISSIONERS
Mayor Michelle Coldiron,District 2
�1 nff `ll Mayor Pro Tem David Rice,District 4
-Ile Florida.Keys Craig Cates,District 1
Eddie Martinez,District 3
w Mike Forster,District 5
County Commission Meeting
April 21, 2021
Agenda Item Number: U.1
Agenda Item Summary #8 111
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 Lloyd's of London for Bayshore Manor, and for the Risk Administrator to
sign all necessary forms.
ITEM BACKGROUND: The purpose of the agenda item is to purchase general and professional
liability coverage for Bayshore Manor. The County's primary liability policy (through the Florida
League of Cities) does not cover medical services, which are offered at Bayshore through nursing
assistants. The policy recommended for approval comes from Lloyds of London, with no fees, at an
annual premium of$14,750.00 with a$2,500 deductible SIR.
The current policy expires on 4/30/2021. For the past two years, the policy has been provided by
American Alternative Insurance Corporation. The renewal presented several challenges. Insurers are
becoming reluctant to provide insurance for ALF's. The ones that are still offering the insurance are
focusing on the larger facilities. The current insurance carrier lost its reinsurance and withdrew from
the Assisted Living Facility ("ALF") market. The County's agent for this policy, Gallagher
submitted the County's account to 13 different insurers (not including American Alternative) before
it was finally able to obtain a quote from Lloyd's of London insurance which 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 to cover claims alleging sexual
and/or physical abuse at Bayshore Manor.. The County's consultant's letter recommending the
Lloyd's of London 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 & 4/15/2020.
CONTRACT/AGREEMENT CHANGES:
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Provides an annual policy for coverage period effective 4/30/21 to 4/30 2022. Premium of
$14,750.00 and no fees represents an increase of$6,792.00 (85%) from the prior renewal of this
policy.
STAFF RECOMMENDATION: Approval to purchase the General and Professional Liability
Insurance policy with Lloyd's of London for Bayshore Manor, and for the Risk Administrator to
sign all necessary forms.
DOCUMENTATION:
Interisk Recommendation Letter Bayshore Manor GL and Professional Renewal
FINANCIAL IMPACT:
Effective Date: 4/30/2021
Expiration Date:4/30/2022
Total Dollar Value of Contract: $14,750.00
Total Cost to County: $14,750.00
Current Year Portion: $14,750.00
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:
04/21/21 503-08502 - RISK MGMT INSURANCE $14,750.00
REVIEWED BY:
Maria Slavik Completed 04/12/2021 11:16 AM
Cynthia Hall Completed 04/12/2021 11:36 AM
Bob Shillinger Completed 04/12/2021 12:57 PM
Purchasing Completed 04/12/2021 1:10 PM
Budget and Finance Completed 04/12/2021 3:18 PM
Liz Yongue Completed 04/12/2021 3:23 PM
Board of County Commissioners Pending 04/21/2021 9:00 AM
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InteriskCorporation Risk Mgt.&Employee Benefits
Consultants
1101 Red Maple Circle N.E.,St. Petersburg, Florida 33703-6318 — telephone: 813-287-1040
www.interisk.net
April 8,2021
0
Ms.Maria Slavik,CPM
Risk Administrator
Monroe County r
i 111 1211,Street
Suite 408 An
Key West,Florida 33040
76
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 30,2021. Arthur J.
Gallagher serves as the County's insurance agent for this coverage.
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Currently,American Alternative Insurance Company is providing the coverage with a Per Occurrence CL
limits of$1 million and a$3 million Annual Aggregate. American Alternative enjoys a favorable rating
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$7,958. 0
This renewal has presented several challenges. First,American Alternative lost their reinsurance and
withdrew from the ALF market. In addition, Gallagher submitted the County's account to 13 different
insurers(not including American Alternative). Gallagher was unable to obtain a proposal from any of these
insurers as well. It appears as if insurers are becoming reluctant to provide insurance for ALFs. Those that
are still offering the insurance are focusing on the larger facilities. r-
Late on April 61h Gallagher notified the County that they have obtained and"Indication''that could be a
bound subject to the completion of the insurer's applications and providing them with other information 0)
they requested. On April 81h Gallagher submitted a formal proposal. Following is an overview of the E
proposal. c
➢ Insurer: Lloyds of London
➢ Policy Period: April 30,2021 to April 30,2022
➢ Coverages: General Liability and Professional Liability. This is consistent with the current
policy.
➢ Limits: $1,000,000 per occurrence and a$3 million Annual Aggregate. This is consistent with
the current policy.
➢ Deductibles: $2,500 per claim for both General Liability and Professional Liability claims. The
current policy does not currently impose a deductible for General Liability claims but does impose
a$2,500 deductible for Professional Liability claims.
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➢ Proposed Annual Premium: $14,750.00. This represents an increase of$6,792 (85%).
While working with Gallagher in finalizing the above proposal one of the other agents(Carmona Insurance
Group)submitted a proposal from the National Assisted Living Risk Retention Group(NALRRG) While
the proposed premium of$11,312.00 is slightly lower than the premium being proposed by Lloyds,the CL
financial strength of the NALRPG is limited. As of 12/30/20 they had a Policy Surplus(Net Worth)of
only $5,841,135. The limited Surplus could impact the ability for the NALRPG to timely honor its claims.
It is recommended that this option be deleted from further consideration.
It is believed that the terms and conditions of the coverages being proposed by Lloyds are comparable to c
the current coverages being provided by American Alternative. Lloyds also offered several options to
consider. None were viewed as being significant and it is recommended that they be eliminated from
consideration.
While the percentage increase in the renewal premium is extremely high,the dollar amount is relatively
low. It is recommended that the County renew its General Liability and Professional Liability coverage for An
Bayshore Manor for the policy period of April 30,2021 to April 30,2022 with Lloyds of London as being
proposed by Arthur J. Gallagher.
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With the ALF market shrinking so much it is recommended that we begin the renewal process for Bayshore W
Manor early next year in an attempt to eliminate the challenges we had on this renewal. W
Please give me a call if you have any questions or wish to discuss this issue in more detail.
0
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Cordially, CL
INTERISK CORPORATION
Sidney G.Webber
CPCU,ARM
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