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Item C27BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: Maz.h 17 2004 Division: Management Services Bulk Item: Yes X No Department: Risk Management AGENDA ITEM WORDING: Approval to accept proposal from Arthur J Gallagher & Company to provide Liability Insurance for Bayshore Manor with Lantana Insurance Company at a cost of $12,921. ITEM BACKGROUND: This proposal provides insurance coverage for General Liability and Wrongful Acts/Vicarious Liability for abuse as required to maintain our State of Florida Assisted Living Facility License. PREVIOUS RELEVANT BOCC ACTION: Approved proposal from Arthur J. Gallagher & Company in 2003 providing insurance coverage. CONTRACT/AGREEMENT CHANGES: Lantana Insurance Company is a different insurance company than last year. Current carrier (TIG Insurance) declined to renew coverage. Policy period is 4/16/04-4/16/05. Premium is increased $2,696. STAFF RECOMMENDATIONS: Approval TOTAL COST: $12 921. COST TO COUNTY:$12.921 BUDGETED: Yes X No SOURCE OF FUNDS:__primarily ad valorum REVENUE PRODUCING: Yes _ No X AMOUNT ER MONTH Year APPROVED BY: County Atty*P\ DIVISION DIRECTOR APPROVAL: OMB/Purchasing k Management _X_ SHEILA BARKER DOCUMENTATION: Included X To Follow Not Required DISPOSITION: AGENDA ITEM # ` MONROE COUNTY BOARD OF COUNTY COMMISSIONERS BAYSHORE MANOR ASSISTED LIVING FACILITY PROPOSAL APRIL 16, 2004 to APRIL 16, 2005 Prepared By: Susan Ainsztein, ARM Kathy Hill, CIC Area Assistant Vice President Account Manager susan_ainsztein@ajg.com kathy_hill@ajg.com Arthur J. Gallagher & Co. 2255 Glades Road, Suite 400E Boca Raton, FL 33431 Telephone: (561) 995-6706 Fax: (561) 995-6708 ajg.com Prepared• February 25, 2004 40. MONROE COUNTY BOARD OF COUNTY COMMISSIONERS February 25, 2004 Mr. William Grumhaus Risk Manager Monroe County BOCC 1100 Simonton Street, S-274 Key West, FL 33040 Re: Bayshore Manor Assisted Living Facility Policy Term: April 16, 2004 to April 16, 2005 Dear Mr. Grumhaus, We are pleased to offer General Liability & Wrongful ActsNicarious Liability for Abuse Coverage for Bayshore Manor, the County's Assisted Living Facility. This year the carrier has been changed from TIG to Lantana Insurance Ltd. Policy forms are provided for your review in the Appendix of the proposal. Lantana Insurance is rated by AM Best A IX. Also, provided in our executive summary is a marketing response survey detailing the carriers we approached for quotes along with their responses. The Healthcare insurance marketplace continues to be very difficult. There are very few carriers willing to offer coverage for assisted living facilities due to the type of exposures and the few markets willing to quote, offer limited coverage with large minimum premium requirements. We will need your authorization to bind coverage, along with the noted requirements outlined in our coverage detail. The applications mentioned in the binding requirements will be forwarded to you next week for signature. Please contact me after you have had an opportunity to review the enclosed with any questions that you may have, or if you would like further clarification on any areas. Sincerely, Arthur J. Gallagher & Co. — Boca Raton Kathy Hill, CIC Account Manager cc: Sid Webber, ARM, CPCU Interisk Corporation 1111 North Westshore Boulevard, Suite 208 Tampa, FL 33607 N:\PUBLPROP\MONROE.BCC\Asst Living Faciliiy\2004-05 Renewai\MonroeAsstLivingBAYSHORE.0204.doc 4W. MONROE COUNTY BOARD OF COUNTY COMMISSIONERS EXECUTIVE SUMMARY MARKETS APPROACHED AND RESPONSE Obtaining a comprehensive and competitively priced program of insurance in the marketplace requires more than access to the market. Past experience and credibility with markets are the foundation of a successful campaign for your company. Complete and accurate submissions, with detailed specifications, are essential. Arthur J. Gallagher & Co. made a complete and personal presentation to each company contacted. Best's Assigned Surplus Rating Lines Com an Proposed as of 2/23/04 Carrier Carrier's Position LJNI-TER/RRG Not Rated Yes Not rated Risk Retention Group No response Lloyd's of London/CRC A XV Yes Minimum premium requirements of - GL/PL $50,000 Essex Program/Macduff A X Yes GL Minimum premium requirements - GL Only (Occurrence $20,000 Coverage) - PL (Claims Made) PL Minimum premium requirement $55,000460,000 RPS/Seattle NA Yes No Markets for Assisted Living - Healthcare Unit Thomco /Lantana Insurance Ltd. A IX Yes Proposed. - GL/PL NAPUBLPROFIMONROE.BCOAsst Living Facilit3&2004-05 RenewallMonroeAsstLivingBAYSHORE.0204.doc 4D. MONROE COUNTY BOARD OF COUNTY COMMISSIONERS GENERAL LIABILTY insuring Carrier: Lantana Insurance Ltd. PolicyTerm: A ril 16, 2004 to April 16, 2005 Carrier Rating: A IX as of February23, 2004 Admitted/Non-Admitted: Non -Admitted Coverage: Your legal liability to members of the public for claims arising out of your premises, operations, product, or completed operations. Designated Premises: 5200 College Road Key West, FL 33040 16 Licensed Beds $3,000,000 General Aggregate Limit Coverages: Included Products/Completed Operations (Included in General Aggregate above) $1,000,000 Personal & Advertising Limit $1,000,000 Each Occurrence Limit $ 5,000 Medical Expense $ 100,000 Fire Damage Limit Forms: I Claims -Made — lst Year Retroactive Date: I April 16, 2004 Supplemental Extended Reporting Period: Unlimited duration is available, but only by an endorsement and for an extra charge. Written request for the endorsement must be within 60 days after the end of the policy period and will not go into effect unless you pay the additional premium promptly when due. Deductible: None Program Enhancements: • Aggregate Limit 3 Times the Occurrence Limit • Automatic Insured Status for Newly Acquired or Formed Organizations & Lessor of Leased Equipment • Expanded definition of Bodily Injury • Unintentional Omissions • Knowledge of Occurrence — Policy Condition NAPUBLPROMONROE.BCOAsst Living Faciligk2004-05 Renewa11MonroeAsstLivingBAYSHORE.0204.doc 40. MONROE COUNTY BOARD OF COUNTY COMMISSIONERS GENERAL LIABILITY (Continued) Major Exclusions • Professional Liability Coverage (including, but not limited • Medical Payments for Patients / Residents/ Clients to): • Assault and Battery • Sexual Abuse & Molestation • Communicable Disease • Lead Liability • War • Amendatory Property Damage Exclusion (CCC) • Nuclear Liability • CG2144 — Limitation of Coverage to Designated Premise or Project • Cyberspace, Internet, Electronic Risk and Software Loss Exclusions (All states and lines of business except Louisiana General Liability and Professional Liability) • Designated Ongoing Operations Exclusion (any services or benefit provided to a resident of the insured's Assisted Living or Independent Living facility • All Other Acts of Terrorism Exclusion for Property, Inland Marine, Crime, General Liability, Professional Liability & Auto • Asbestos Liability • Employment Related Practices Exclusion • Fungi or Bacteria Exclusion for CGL • L5CGCEUSO403 Exclusion - for Claims or "Suits" Within the Scope of Other Policies • L5CGHSUSO403 Exclusion — Services Furnished by Health Care Providers • L5CGREUSO403 Exclusion — Bodily Injury or Property Damage to Residents and Clients • Punitive Damages Exclusion for Professional Liability • Total Pollution Exclusion Annual Premium: $1,516.00 FL Surplus Lines Tax: Exemyt $1,516.00 Terrorism (TRIA) Option: 12.00 Total Premium: $1528.00 Audit Terms: I Not auditable Premium due and payable upon binding Minimum Premium: 25% Minimum Earned Premium at Inception NAPUBLPROPMONROE.BCOAsst Living Facilit3h2004-05 RenewahMonroeAsstLivingBAYSHORE.0204.doc 4D. MONROE COUNTY BOARD OF COUNTY COMMISSIONERS WRONGFUL ACTS AND VICARIOUS LIABILITY FOR ABUSE Insuring Carrier: Lantana Insurance Ltd. Polic Tern: A ril 16, 2004 to April 16, 2005 Carrier Ratio A IX as of February 23, 2004 Admitted/Non-Admitted: Non -Admitted Designated Premises: 5200 College Road Key West, FL 33040 16 Licensed Beds Coverages: $1,000,000 Wrongful Act Liability — each claim $1,000,000 Vicarious Liability for Abuse — each claim 1$3,000,000 Policy Aggregate For is: Assisted Living Facility Form • • Claims Made and Reported • Prior Acts coverage date: 4/16/2003 — 2`d Claims Made Year • Defense Costs reduce the limit of liability Optional Extended Reporting Period: Notify carrier in writing within 60 days of the expiration. One Year 100% of Annual Premium Two Years 150% of Annual Premium Three Years 200% of Annual Premium Unlimited To Be Determined by Company Deductible: None Major Exclusions • Medical Professional Services (including, but not limited • Restraints to): • Punitive Damages • Specified Excluded Activities: • Ventilator Care • Wound management, except for emergency first aid administered at the time of the injury or within 48 hours thereafter • Post operative/trauma recovery • Intravenous/antibiotic/hydration therapy • Total parenteral nutrition (TPN) • Administering of medication by injection (except in or vitamin B12 injections) • Catheter insertion and sterile irrigation • Gastronomy feedings • Care of Colostomies and/or ileostomies • Nasopharyngeal and/or tracheotomy suctioning • Cutting of toenails of diabetic residents • Performing ear irrigations • Administering enemas • Caring for and/or treatment of stage 2, 3, or 4 decubitus ulcers NAPUBLPROPMONROE.BCOAsst Living Facility\2004-05 RenewaM4onroeAsstLivingBAYSHORE.0204.doc 40. MONROE COUNTY BOARD OF COUNTY COMMISSIONERS WRONGFUL ACTS AND VICARIOUS LIABILITY FOR ABUSE (Continued) Annual Premium: $11,405.00 FL Surplus Lines Tax Exempt $11,405.00 Terrorism (TRIA) Option: 95.00 Total Premium: $11,500.00 Audit Terms: I Not Auditable Premium due and payable upon binding nTerms/Conditions: um Premium: 25% Minimum Earned Premium at inception • Coverage is contingent upon writing both the Wrongful Act and Vicarious Liability Abuse coverage and the General Liability coverage with Thomco Binding Subject to: The following items must be received prior to binding: • Signed Authorization to bind • Assisted/Independent Living Supplemental application signed by applicant prior to binding • Terrorism Disclosure Notice signed by Insured if coverage is rejected. If not received the full charge for Terrorism coverage will be invoiced. • Claims -Made Notice signed by Insured • Complete information on all mortgagees, loss payees and any other Third Party interests • See General Liability quote for additional binding terms and conditions • All other Terms and Conditions apply per form Notes: This proposal only provides a summary of the major exclusions, terms or conditions in this policy. Please review the actual policy wording for coverage details. Notable changes to the policy: • Carrier has changed this year from TIG Insurance Co, an admitted carrier with an AM Best rating of B+ XIV to Lantana Insurance LTD a non -admitted carrier with an AM Best rating of A IX • Wrongful Acts coverage is Claims Made - 2"d year • New policy forms are provided in the Appendix N:\PUBLPROPPMONROE.BCCWsst Living Facility\2004-05 RenewaM4onroeAsstLivingBAYSHORE.0204.doc