Item C08BOARD 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 Arthur J. Gallagher to provide
General and Professional Liability insurance for Bayshore Manor —Assisted Living Facility with
Colony Insurance Company at a cost of $18,477.27.
ITEM BACKGROUND: Coverage is for General Liability and Wrongful Acts/Vicarious Liability
for abuse as required to maintain our State of Florida Assisted Living Facility License. Also covers
claims alleging sexual and/or physical abuse. The current premium is $18,476.11.
PREVIOUS REVELANT BOCC ACTION: In 2011 the BOCC approved the initial policy with
Colony Insurance Company. This is the second renewal of this policy.
CONTRACT/AGREEMENT CHANGES Renew the General and Professional Liability Insurance
with Colony Insurance Company for the period beginning 4/30/13 with a premium of $18,477.27.
STAFF RECOMMENDATIONS: Approval.
TOTAL COST: $18,477.27 INDIRECT COST: BUDGETED: Yes X No
DIFFERENTIAL OF LOCAL PREFERENCE:
COST TO COUNTY: LL477.27 SOURCE OF FUNDS: Internal Service Fund
Primarily Ad Valorem
REVENUE PRODUCING: Yes.No X AMOUNT PER MONTH Year
APPROVED BY: County Atty" O .B ~/Purchasing Risk Mana emen g t
f
DOCUMENTATION: Included X Not Required
DISPOSITION: AGENDA ITEM #
Revised 2/27/01
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract with: Arthur J. Gallagher & Co
Contract #
Effective Date:
4/30/13
Expiration Date:
4/30/2014
Contract Purpose/Description:
Ba shore Manor Assisted Living Facility
insurance policy renewal
Contract Manager: Maria Slavik
3178
Risk Management #7
(Name)
(Ext.)
(Department/Stop #)
for BOCC meeting on April 17, 2013
Agenda Deadline: 4/2/2013
CONTRACT COSTS
Total Dollar Value of Contract: $ $18.477.27 Current Year Portion: $ $18,476.11
Budgeted? YesN 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, utilities, janitorial, sz
CONTRACT REVIEW
Changes
Date In Needed _W0Reviewer
Division Director 13 Yes❑ No[?f
Risk Management 3 3 Yes❑ NoE2/
O.M.B./Purchasing '�' b-l3 Yes[:] No0
County Attorney Aid(J.,
k1rak,9\6 YesAk
[:]No[✓/ �
Comments:
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I NTERISK CORPORATION
Consultants
Risk Management
Employee Benefits
March 25, 2013
Ms. Maria Slavik, CPM
Risk Administrator
Monroe County
1100 Simonton St.
Suite 268
Key West, Florida 33040
1111 North Westshore Boulevard
Suite 208
Tampa, FL 33607-4711
Phone (813) 287-1040
Facsimile (813) 287-1041
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, 2013. Arthur J.
Gallagher's proposal for the renewal of this policy has been received and reviewed.
Currently, Colony Insurance Company is providing the coverage with Per Occurrence limits of $1 million
and a $3 million Annual Aggregate. Colony 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 $18,476.11.
Gallagher has proposed renewing the policy with Colony with the same terms and conditions for an annual
premium of $18,477.27.
Few insurers have the ability and desire to provide insurance for Assisted Living Facilities and even fewer
are willing to provide insurance for smaller facilities. Bayshore Manor has 16 beds.
Based on the limited availability of the desired coverages, the protection being offered by Colony and the
fact that the Colony's program has served the County well, it is recommended that Monroe County renew
Bayshore's General and Professional Liability insurance with Colony Insurance Company as proposed by
Arthur J. Gallagher for the period April 30, 2013 to April 30, 2014.
d
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