Item C43
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: September 18. 2002 Division: Management Services
Bulk Item: Yes -X- No - Department: Administrative ServiceslRiskManagement
AGENDA ITEM WORDING: Approval to accept proposal from Arthur J. Gallagher for Honesty Blanket
Bond (Employee Dishonesty) in the amount of$I,693.
ITEM BACKGROUND: On August 6, 2002, the Florida League advised the County they would be
unable to renew its Honesty Blanket Bond due to restrictions placed upon them by their re-insurers.
Arthur J. Gallagher was requested to submit a proposal for a replacement policy.
PREVIOUS REVELANT BOCC ACTION: Included in the Florida League of Cities (FMlT #386)
Policy. This is there third and final year.
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CONTRACT/AGREEMENT CHANGES: This represents a decrease of $200.00. The new renewal
dates are 10/1/2002- 9/30/2003.
STAFF RECOMMENDATIONS: Approval.
TOTAL COST: $1 .693 BUDGETED: Yes -X- No -
COST TO COUNTY: $1.693
REVENUE PRODUCING: Yes - No-X AMOUNT PER MONTH - Year
-
APPROVED BY: County Atty _ OMB/Purchasing _ Risk Management _
DIVISION DIRECTOR APPROVAL: 1<<. ~C 2Q
;'0 ~ ,..,~-
JAMES L. ROBERTS
DOCUMENTATION: Included -L To Follow Not Required _
DISPOSITION: AGENDA ITEM r--:%
Revised 2/27/01
INTERISK CORPORA TION
Consultants 1111 North Westshore Boulevard
Suite 208
Risk Management Tampa. FL 33607~711
Employee Benefits Phone (813) 287-1040
Facsimile (813) 287-1041
August 22, 2002
Ms. Maria Slavik
Risk Management Specialist
Monroe County
1100 Simonton Street
Suite 268
Key West, Florida 33040
Subject: Replacement of Employee Dishonesty Insurance
Dear Maria: -
On August 6, 2002, the Florida League advised the County that they would be unable to renew its Honesty
Blanket Bond (Employee Dishonesty) due to restrictions placed upon them by their re-insurers. Arthur 1.
Gallagher was requested to submit a proposal for a replacement policy.
Gallagher has proposed replacing the Florida League's coverage with a policy issued by Travelers Casualty
and Surety Company. A copy of Gallagher's proposal is attached for your review.
Travelers' enjoys a favorable rating from A.M. Best and Company, the leading evaluator of insurance
company operations. Travelers is proposing to provide the replacement coverage with limits of $500,000
for an annual premium of $1,693. This is $200 less than what the County is currently paying ($1,893).
Travelers will require the County to absorb the first $5,000 of each claim as a deductible. The current
Florida League policy does not have a deductible provision. Since the County has never had an Employee
Dishonesty claim, accepting Travelers' deductible does not generate a major concern.
While I am familiar with Travelers' policy form, I have requested Gallagher to provide a sample copy of
the policy that will be issued. I do not anticipate having any concerns with the policy language.
Baring any unforeseen concerns with Travelers' policy, it is recommended that the County accept
Travelers' proposal as submitted by Arthur 1. Gallagher for the 2002/2003 policy year.
As always, please do not hesitate to call if you have any questions.
Cordially,
INTERISK CORPORATION RECEIVED
~~ AUG 2 7 2002
Sidney G. Webber
CPCU, ARM MONROE COUNTY
RIS" I." ',,' r:~"1E:lT
.-... Adele M Korczak
TravelersJ 215 Shuman Blvd.
NAPERVILLE,IL 60563-8458
Phone: (630) 961-7035
Fax: (630) 961-7020
August 20, 2002
Sharon Sinople
GALLAGHER\A J\ISRS (OHJ660)
THE GALLAGHER CENTRE
TWO PIERCE PLACE
ITASCA,IL 60143-3141
RE: MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
Commercial Crime Policy - Quotation
Form F-1697 (07/97)
Dear Sharon,
On behalf of Travelers Casualty and Surety Company of America we are pleased to offer this
quotation for Commercial Crime Insurance pursuant to the following terms & conditions:
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Insurio2: Afreements Limit of Insurance Deductible Annual Premium
Option 1
Cvg Frm 0 - Public Emp. Dis. per Loss $500,000.00 $5,000.00
Total Premium $1,693.00
ENDORSEMENTS (The titles & headings are for convenience only. Please refer to the policy and
endorsements for a description of coverage):
Applicable to Option NO.1
CR-0206 06-95 FL Changes
CONTINGENCIES (This quote is subject to the underwriter's receipt and satisfactory review of the
following prior to the quotation expiration date set forth below):
1 Most Recent Financial Statement on the Company
NOTES: