Item R12
BOARD OF COUNTY COMMISSIONERS
AGE~DA ITEM SliMMARY
~v1ecting Datl:: J~pr.iL20,,-..2.Q05 ____________..._.
Division:
. _C.mLntv Attornc-v
Bulk ltem: Y cs__._x.__
No
Department: Risk ManagCn~D.t_____
AGENDA ITEM WORDING: Approval to accept proposal from Arthur ,I Gallagher &
Company to pro,,-ide Liability Insurance for Bayshore Manor with Lantana Insurance Company
at a cost ofS141829.
ITEM BACK(;ROl1ND: 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 Facilit), License.
PREVIOUS RELEV ANT BOCC ACTION: Approved proposal from Arthur J. Gallagher &
Company in 2003 providin~ insurance co'.erage.
CONTRACTJAGREEI\fENT Cl-lA~G.ES:Lantana Insurance Company is a different insurance
compan)' than last yeaf. Current carrier (TIG Insurance) declined to rencw covc.....ge. Polic~:
period is 4/30/05-4/30/06. Premium is increased b)1 $1,908 or 14.8%.
STAFF RECOMMENDATIONS: Approval
TOTAL COST:
$14,819
BlJD<;ETED: Yes _L No
COST TO COUNTY:tt"L8.29_
SOURCr. OF FUNDS:_yrimarily ad valorum__
REVENLE PRODUCING: Yes
No X
AMOliNT PER MONTH
Year
APPROVED BY: County Atty ~ OrvtB/Pun:hasing"X__
Risk Manageme11l_X__
DIVISION DIRECTOR APPROVAL: 4L12-fl~ lL~ _<;:, ;}L:z" ldt
JOHN R. COLLINS
nOClJMENT A TfON:
Included ._X
To Follc)\-\'_
Not Required ,__.__
DISPOSITfO N:
AGENDA ITEM #
Revised 2/27,01
M01\;ROE COUNTY BOARD OF COUNTY COMMJSSfONFRS
CONTRACT SUMMARY
Contract with:
Contract #
Effective Date:
r:xpirution Date:
4/30/05
4/30/2006
Arthur J. Gallag.her & Co
Contract PUf{Xlsc/Tkscription;
Bayshore Manor Renewal
-.
. ... ..._.__ _..._ ._. ._..._.... - .on.. _.. ... ._____._ ._.._.__ __ __ _____.__._________
Contract Manager: rv1a.ri.a5!<.l\:i~
(Name)
3178
--~..._------_.- --.--.
(FxL)
.~O~lIlt.YAtlornex __.#..7..._.____.
(Department/Stop #)
for BOCC meeting on
4-20-05
Agenda Deadline; 4~5-2005
CONTRACT COSTS
Total Dollar Value of Contract: $ $14.829 Current Year Portion: $
-_._~-----
Account Codes: 50}-QS.J_02-530-45()-____
NoD
Budgeted'? Y es~
Grant: $
County Match: $
- - - -
.".". -- --- -- ----
ADDITIONAl ~ COSTS
Estimated Ongoing Costs: $_____/yr For:
(Not included in dollar value above) (eg. maTnte;;an.ce~-ulj.Jilies,Ja.nrtorial, salaries. etc.)
CONTRACT RFVIEW
Division Director
>>~t}}j}--
(,~)
Changes ~
Needed~} R_eY1-e,\.ve;..------..
YesD NoL.J -::rC ~.M~ _,._.__~
YesD NoD "_J -". ..
.r.;;r' (; ../ I"
YesD Nou' . Jll1-./.' (,. .f, , >\.' \.
YesD NO~ Qo'v-.~ Q!t~
Date Out
C'jJ?UP...'L
Risk Management
O. M .l1.iPurchasing
// / '"'" ,.
7--/ - ( , )
County Attorney
1j1li&~.
9?/27-/o-"
Comments:
OMB form Revised 2/27.:01 ivtCP #2
INTERISK
CORPORA IION
Risk Management
Employee Benefits
1111 North Westshore Boulevard
Suite 208
Tampa, FL 33607-4711
Phone (8'13) 287-1040
Facsimile (813) 287-1041
Consultants
i\1arch 29. ZOO.'
M,. \'laria Slavik
Risk \1al1;]gerncnt Spccialisl
\h'n[oe County
502 ~'hitt'head S1.
Ke) Vi est F brida :1 3040
Subject: Renewal"fBayshon: Manor Liability lnsural1l;e
Dear \1aria:
When r retlll1led from my HIl"iili,m lhis morning, 1 noticed that Gallaghel' has submitted a proposal 101. lhe
l'cncw}l1 of Bayslwre \1anor's l.iability insurance. As we haw disctbSed several limes. obtaining quality
insurance for l-3ayshorc presents several challenges. The most challenging one is the fact that oniy a few
m,urers have the resources and desire to prO\'ide insurance fi.;r assisted living lucilities. ~'Iany fucilities
throughout the State pa.y premiums 111:'11 are equal 10 the policy I im its of liabiilty sim ply to comply with
S ta Ie- rcgul at ion s.
The fact that Bayshore is con sider,~d a sm all facility with only a si xW::r. ( i 6) licensed beds makes it even
less at1ra,-~tive Ip the inSllranct: industry. The premiums for such a policy arc normally based on the number
oflieensed beds the faei I ity has. With only 16 beds. a num bel' of in surer', bel ieve that there is l10t enuugh
premium to support the potential exposure.
;\ third challenge is the fact that the facilit), is owned llnd uperatcd by a gQl/ermnenjal entity. Many
1I1SUrt'fS tit' not vie.\' governmell1al eniit ies as an acceptable risk to insure.
The cmretll program for Bayshore is provided by Lanlana Insurance LId on a claims made basis wilh a
retroactive dill<:: or April 16.2004 for Cel1entl Liability clai inS and April 16. 2003 for the facil ities
\....rongful Acts and V icarious Liability coverage. Lantana enjoys a tavorahle rating from the A. M. Bc,;t
and Company. the leading evaluator of insurance company operations. The premium Jor lhe period April
16, 2004 10 April 16, lOOj was $12,921. On ~hll'ch 23, 2005. I.antalla agreed to extend the policy b)' 14
days until April:10,2005 tor an '1dditional premium 01'$995.
1.antana has agreed 10 renew the c'urrent program !ox an annual premium of $14,829, Th is represents an
increase ofS 1 ,908 ( 14.8";') over wh at was paid for the 2004/2005 pol icy. VI ilh the challenges assisted
living facilities face in obtaining quality insurance. it is believed that Lantana's renewal proposal ha, tll be
vie\,ed as being favorable and it ig recommended that Ba:vshorc Manor rcnew its Liability insurance with
Lantana as proposed hy Arthur], G::Jllagher for the period April 30, 2005 to April 30. 2006.
fht:- $14.829 docs not include coverage for Terrorism acts as mandated by lhe Terrorism Risk lnsufllnce
Ad 01' 2002. If the Cvullty wants to purchase this add-ed protection, I.antana will charge an additi(~llal
premium of S] ]0. It is not believed that Bayshore i~ a high terrorist target and it is recommcnded that
terrorism cnveragt no! be purdlflscd at this time.
As always, plellse do [Jot hesiute 10 call ifYDlI have any qucstions.
Cordially,
INTERISK CORPORATION
{- ./_ L
Sidney G. Webber
cpeL. /\RJvl