Item C07BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: April 17, 2013 Division: Employee Services
Bulk Item: Yes X No _ Department: Risk Management
Staff Contact Person: Maria L. Slavik x3178
AGENDA ITEM WORDING: Approval to accept proposal from Marsh USA to provide Professional
Liability Insurance for Air Ambulance Nurses with Arch Specialty Insurance Company at a cost of
$20,000.
ITEM BACKGROUND: The County's Professional Liability insurance for the Air Ambulance
Nurses expires on April 26, 2013. The County's current coverage is provided by Admiral Insurance
Company with the Florida League of Cities. The policy limits of the current policy are $1 million per
Occurrence and $3 million Annual Aggregate with a $5,000 deductible. The current premium is
$24,458.89.
PREVIOUS REVELANT BOCC ACTION: On May 16, 2007 the BOCC approved the initial policy
with Admiral Insurance Company at the rate of $32,535.
CONTRACT/AGREEMENT CHANGES: The terms and conditions of Arch Insurance are
consistent with those currently being offered by Admiral with the exception that Arch's proposal
eliminates the $5,000 deductible. In addition, the Arch Insurance Company premium is $3,840.96
(16%) lower than that being offered by Admiral for this renewal term.
STAFF RECOMMENDATIONS: Approval.
TOTAL COST: $20,000 INDIRECT COST:
DIFFERENTIAL OF LOCAL PREFERENCE:
BUDGETED: Yes X No
COST TO COUNTY: $20,000 SOURCE OF FUNDS: Internal Service Fund
Primarily Ad Valorem
REVENUE PRODUCING: Yes _ No X AMOUNT PER MONTH Year
0-
APPROVED BY: County Attl OMB/Pumik asing Risk Managemen
DOCUMENTATION: Included X Not Required
DISPOSITION: AGENDA ITEM #
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract with: Marsh USA
Contract #
Effective Date:
04/26/13
Expiration Date:
04/26/14
Contract Purpose/Description:
Professional Liability Insurance for Air
Ambulance Nurses
Contract Manager: Maria Slavik
3178
Risk Management #7
(Name)
(Ext.)
(Department/Stop #)
for BOCC meeting on 04/17/13
Agenda Deadline: 04/0/2/2013
CONTRACT COSTS
Total Dollar Value of Contract: $ $20,000 Current Year Portion: $ 24,458.89
Budgeted? Yes® No ❑ Account Codes: 503-08502-530-450-
Grant: $
County Match: $
ADDITIONAL COSTS
Estimated Ongoing Costs: $ /yr For:
(Not included in dollar value above) (eg. maintenance,
CONTRACT REVIEW
Changes Date Out
DWteiNeeded R viewer
Division Director � Yes❑ Nod 3I� 113
Risk Management J Yes❑ No. f 3
O.M.B./Purchasing r `$> Yes❑ No®
County Attorney _ Yes❑ NoZ/ Lcc 3 a a013
Comments:
vivin rurui Avvlseu L/L //U1 mur FFL
I NTERISK CORPORATION
Consultants
Risk Management
Employee Benefits
March 1, 2013
Ms. Maria Slavik, CPM
Risk Administrator
Monroe County
1100 Simonton St.
Suite 268
Key West, Florida 33040
Subject: Renewal of Professional Liability Insurance for Air Flight Nurses
Dear Maria:
1111 North Westshore Boulevard
Suite 208
Tampa, FL 33607-4711
Phone (813) 287-1040
Facsimile (813) 287-1041
The County's Professional Liability insurance for their Air Flight Nurses expires on April 26, 2013.
Currently, the County's coverage is provided by Admiral Insurance Company with the Florida League of
Cities serving as the agent. Admiral enjoys a favorable rating from the A.M. Best Company, the leading
evaluator of insurance company operations. The policy limits of the current policy are $1 Million per
Occurrence and $3 Million Annual Aggregate. All claims are subject to a $5,000 deductible. The annual
premium of the current policy is $24,458.89
Admiral has agreed to renew the County's Professional Liability policy with terms and conditions
consistent with the current policy for an annual premium of $23,840.96. This represents a premium
reduction of $617.93 (3%).
In an effort to determine the competitiveness of the premium being charged by Admiral, Marsh USA was
asked to develop a proposal for competing coverage. Marsh has submitted a proposal from Arch Specialty
Insurance Company with terms and conditions consistent with those being provided by Admiral. As with
Admiral, Arch enjoys a favorable rating from the A.M. Best Company. Arch has proposed limits of $1
Million per Occurrence and $3 Million Annual Aggregate. Claims covered under the Arch's policy would
not be subject to a deductible. Arch has proposed an annual premium of $20,000 for their policy.
Following is a side by side comparison of the County's current program, Admiral's renewal proposal and
the proposal submitted by Arch.
Current Coverage
Florida League of Cities
Marsh
Insurer
Admiral Insurance Company
Admiral Insurance Company
Arch Specialty Insurance
Company
A.M. Best Rating
A+
A+
A+
Policy Limits
$1 Million per Occurrence
$3 Million Annual Aggregate
$1 Million per Occurrence
$3 Million Annual Aggregate
$1 Million per Occurrence
$3 Million Annual Aggregate
Deductible
$5,000 per Claim
$5,000 per Claim
None
Annual Premium
$24,458.89
$23,840.96
$20,000
It is believed that Arch's program is more attractive than the one submitted by Admiral for the following
reasons:
1. The terms and conditions of the Arch's program are consistent with those being offered by
Admiral.
2. The Arch's program would not be subject to a deductible while Admiral's program would be
subject to a $5,000 per claim deductible.
3. Both Arch and Admiral are viewed as quality insurers.
4. Arch's annual premium would be $3,840.96 (16%) lower than that being offered by Admiral.
For the above reasons, it is recommended that Monroe County renew its Professional Liability coverage for
their Flight Nurses with Arch Specialty Insurance Company for the period 4/26/13 to 4/26/14 and move the
administration of the program from the Florida League of Cities to Marsh USA.
Please give me a call if you have any questions or wish to discuss this issue in more detail.
Cordially,
INTERISK CORPORATION
Sidney G. Webber
CPCU, ARM
CC: Teresa Aguiar