Item Q2 �5 Q2
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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
-Ile Florida Keys Craig Cates,District 1
Eddie Martinez,District 3
w Mike Forster,District 5
County Commission Meeting
July 21, 2021
Agenda Item Number: Q.2
Agenda Item Summary #8424
BULK ITEM: Yes DEPARTMENT: Risk Management
TIME APPROXIMATE: STAFF CONTACT: Maria Slavik (305) 295-3178
N/A
AGENDA ITEM WORDING: Approval to accept proposal for renewal of Airport Liability
Insurance from ACE Property and Casualty Ins. Co. through Arthur J. Gallagher & Co. with an
annual premium of $52,240.00, and authorization for the Risk Administrator to sign all necessary
forms.
ITEM BACKGROUND: Monroe County's airport liability insurance policy with ACE Property
and Casualty Ins. Co. (ACE) expires on July 27, 2021. The proposed renewal policy through ACE
provides the same $100,000,000.00 in liability coverage for airport operations in Key West and
Marathon. ACE agreed to renew the policy with terms and conditions consistent with the expiring
policy with an annual premium $52,240.00 and no deductible. This represents an increase of
$6,817.00 (15%) from the current annual premium of$45,423.00. ACE indicated that Aeronautical
premiums have been increasing throughout the market place. The renewal policy effective dates are
7/27/21-7/27/22. The County's risk consultant's letter providing analysis and recommending this
renewal is attached.
PREVIOUS RELEVANT BOCC ACTION: 7/15/20 - BOCC approved the current ACE airport
liability insurance policy proposed by Arthur J. Gallagher& Co. insurance broker.
CONTRACT/AGREEMENT CHANGES:
Renew Airport Liability Insurance with Ace Property and Casualty Ins. Co. through Arthur J.
Gallagher. The proposed annual premium will be $52,240.. This represents an increase of$6,817
(15%).
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Interisk Corporation Recommendation Letter 7-27-21-7-27-22
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Q.2
FINANCIAL IMPACT:
--Effective Date: 7-27-2021
--Expiration Date: 7-27-2022
Total Dollar Value of Contract: $52,240.00
Total Cost to County: $52,240.00
Current Year Portion: $45,423.00
Budgeted: Yes
Source of Funds: Key West Airport O & M
CPI: N/A
Indirect Costs: N/A
Estimated Ongoing Costs Not Included in above dollar amounts: N/A
Revenue Producing: No If yes, amount:
Grant: N/A
County Match: N/A
Insurance Required: N/A
Additional Details:
07/21/21 404-63001 - KEY WEST AIRPORT O & M $52,240.00
REVIEWED BY:
Cynthia Hall Completed 07/02/2021 12:02 PM
Bob Shillinger Completed 07/06/2021 6:44 PM
Purchasing Completed 07/07/2021 8:17 AM
Budget and Finance Completed 07/07/2021 10:09 AM
Liz Yongue Completed 07/07/2021 10:34 AM
Board of County Commissioners Pending 07/21/2021 9:00 AM
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Q2.a
InteriskCorporation Risk Mgt.&Employee Benefits
Consultants
1101 Red Maple Circle N.E.,St. Petersburg, Florida 33703-6318 — telephone: 813-287-1040
www.interisk.net
June 25,2021
Ms.Maria Slavik,CPM
Risk Administrator
Monroe County
i 111 1211,Street
Suite 408
Key West,Florida 33040
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Subject: Renewal of Airport Liability Insurance
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Dear Maria: N
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The County's Airport Liability policy expires on July 27,2021. The policy is currently provided by ACE CN
Property and Casualty Insurance Company with limits of$100 million. The policy also contains various N
sub-limits. Some of the more notable sub-limits are as follows: ie
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➢ Personal Injury and Advertising $50 million
➢ Fire Damage $250,000
➢ Medical Expense $25,000
➢ Excess Automobile Liability $50 million
➢ Excess Employers Liability $50 million
It is not believed that any of the above sub-limits materially impacts the protection being purchased by the
County.
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There are no deductibles associated with this policy. The annual premium for the current policy (7/27/20—
7/2721)is$45,423.
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ACE has agreed to renew the County's Airport Liability policy with terms and conditions consistent with
the expiring policy for$52,240. This represents an increase of$6,817(15%). Aeronautical premiums have 0
been increasing throughout the market place and a number of Aeronautical insurers have left the market.
Gallagher is stating that higher premium is due to the market tightening and fewer insurers to add U
competition. le
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Q2.a
Gallagher also submitted the County's account to the following insures with the response they received.
ACE Airport Incumbent—quoted$52,240
Liability
AIG Aviation Airport Indication$116,739
Liability
QBE Airport Declined due to claim history
Liability
Old Republic Airport No response
Liability
Starr Aviation Airport No response
Liability
AXAXL Airport Declined to quote—not actively
Liability seeking new business
It is believed that ACE's renewal proposal is attractive and it is recommended that the County renew its
Airport Liability Insurance Policy with ACE Property and Casualty Insurance Company,as being proposed
by Arthur J. Gallagher for the policy term 7/27/21 to 7/27/22.
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Please give me a call if you have any questions or wish to discuss this issue in more detail. N
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Cordially,
INTERISK CORPORATION
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Sidney G.Webber 0
CPCU,ARM
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