Item P08
Q/9
BOARD OF COUNTY COMMISSIONERS
C ounty of M onroe
Mayor David Rice, District 4
Mayor Pro Tem Craig Cates, District 1
The Florida Keys
Michelle Coldiron, District 2
Vacant, District 3
Holly Merrill Raschein, District 5
County Commission Meeting
April 20, 2022
Agenda Item Number: P.8
Agenda Item Summary #10450
BULK ITEM: Yes DEPARTMENT: Risk Management
TIME APPROXIMATE: STAFF CONTACT: Brian Bradley (305) 295-3177
no
AGENDA ITEM WORDING: Approval to accept Marsh USA proposal and obtain property
insurance policies from Landmark American Ins. Co. (Landmark), Hiscox Insurance Co.,
Westchester Insurance Company, Great Lakes, and Velocity Risk Underwriters, and also Boiler and
Machinery Insurance from Hartford Steam Boiler Ins. Co. (HSB), and authorization for the Risk
Administrator to execute all necessary forms.
ITEM BACKGROUND:
The Property program includes coverage for:
!
!
!
!n Towers and Equipment
!
The program is segregated into 2 layers, as shown below:
Layer 1 (Includes Named Storm Wind and Flood Coverage)
Total Layer Total
Limits Annual
Insurer Limits Layer
Provided Premium
Premiums
Lloyds of
$2,500,000 $600,000
London.
Sompo
$2,500,000 $450,000
International
$10,000,000 $1,962,000
Westchester
Surplus Lines $5,000,000 $912,000
Ins. Co.
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Q/9
Layer 2 (Excludes Named Storm Wind and Flood Coverage)
$256,958,616
Landmark/RSUI excess of $10 $102,465
$256,958,616 $102,465
million
Total Program
$266,958,616 $2,064,465
The policy is subject to the following deductibles.
$50,000 except Named Windstorm and Flood
Buildings and Contents
losses
$50,000 except Named Windstorm and Flood
EDP Equipment
losses
$5,000 except $50,000 for Named Windstorm
losses
Towers and Communication $5,000 except $50,000 for Named Windstorm
Equipment losses
$50,000 except Named Windstorm and Flood
EMAS
losses
Named Wind Storm $1,000,000 per location/per occurrence
Flood 5% of the value damaged
All of the insurers participating in the expiring program enjoys a favorable rating from the AM
Property insurance underwriters are typically reluctant to issue formal proposals 2 months ahead
of the effective date. The premiums shown above are s. While
the terms and conditions of the renewal proposal are comparable to the expiring policy, some of
the insurers are being replaced and the percentage of the program they are taking will change.
Marsh is continuing to negotiate with potential insurers that has the capability and desire to
rongly believe that their negotiations will
Property program will
increase by $550,279 (36.34%). The increase is attributable to a combination of (a) Total
Insured Value increasing by $10 million, and (b) premium increases for property insurance
throughout the industry.
Marsh is continuing efforts to obtain better pricing or improved terms. The proposal presented
above represents the worst case scenario.
st
In addition. The Boiler
and Machinery coverage is provided through a separate policy issued by the Hartford Steam
Boiler Inspection and Insurance Company with limits of $100 million and a per incident
deductible of $5,000 except for damage to Air Conditioning and Refrigerating Equipment which
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Q/9
has a $25,000 per HP deductible. Hartford Steam Boiler enjoys a favorable rating from the AM
Best Company, the leading evaluator of insurance company operations. The
Machinery exposure is considerably less than the $100 million limit. It is common for Boiler
and Machinery insurers to offer limits considerably higher than the exposures. The coverage is
being primarily purchased to obtain State required inspections of 4 pressure vessels located at the
Detention Center on Stock Island.
Marsh has
program. This represents an increase of $1,710 (12.9%) over the premium paid last year for the
same policy ($13,290). The percentage increase is consistent with that being experienced by
other Interisk clients.
In total, the cost for the Property and Boiler and Machinery coverages will be a not to exceed
$2,079,465, +$551,989 from last year (+36.14%).
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Q/9
PREVIOUS RELEVANT BOCC ACTION: Staff went out for RFP on January 23, 2020, and only
one proposal was received from Marsh USA, Inc., (incumbent). Use of this broker was then
approved by the BOCC. The current policies through Marsh USA, Inc. expire on May 1, 2022.
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: It is recommended that the County obtain its Property insurance coverage for
the 5/1/22 to 5/1/23 policy term for an annual premium not to exceed $2,064,465 as being proposed by Marsh, and that
the County renew its boiler insurance for an annual premium not to exceed $15,000, also as proposed by Marsh.
DOCUMENTATION:
Interisk Recommendation Letter
Evaluation
Monroe County Presentation 22
FINANCIAL IMPACT:
Effective Date: 5/1/2022
Expiration Date: 4/30/2023
Total Dollar Value of Contract: not to exceed $2,079,465
Total Cost to County: not to exceed $2,079,465
Current Year Portion: $2,079,465
Budgeted: Yes
Source of Funds: Internal Service Fund/Primarily Ad Valorem
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:
04/20/22 503-08502 · RISK MGMT INSURANCE $2,079,465.00
REVIEWED BY:
Brian Bradley Completed 04/05/2022 12:36 PM
Cynthia Hall Completed 04/05/2022 3:02 PM
Bob Shillinger Completed 04/05/2022 3:27 PM
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Purchasing Completed 04/05/2022 3:36 PM
Budget and Finance Completed 04/05/2022 3:53 PM
Lindsey Ballard Completed 04/05/2022 4:17 PM
Board of County Commissioners Pending 04/20/2022 9:00 AM
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Q/9/b
I nterisk Corporation Risk Mgt.& Employee Benefits
Consultants
1101 Red Maple Circle N.E., St. Petersburg, Florida 33703-6318 telephone: 813-287-1040
www.interisk.net
April 4, 2021
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Subject: Property/Boiler and Machinery Renewal
Brian,
2
st
coverage also expires on May 1. The Boiler and Machinery coverage is provided through a separate
policy issued by the Hartford Steam Boiler Inspection and Insurance Company with limits of $100 million
and a per incident deductible of $5,000 except for damage to Air Conditioning and Refrigerating
Equipment which has a $25,000 per HP deductible. Hartford Steam Boiler enjoys a favorable rating from
the AM Best Company, the leading evaluator of insurance company operations. The annual premium for
the expiring coverage was $13,290. It should be noted t
considerably less than the $100 million limit. It is common for Boiler and Machinery insurers to offer
limits considerably higher than the exposures. The coverage is being primarily purchased to obtain State
required inspections of 4 pressure vessels located at the Detention Center on Stock Island.
The Property program includes coverage for:
!
!
!
!The Coun
!
The program is segregated into 2 layers. Following displays the structure of each layer when the 2021/22
program was initially bound. Throughout the year properties have been added and deleted from the
Program.
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Q/9/b
Layer 1 (Includes Named Storm Wind and Flood Coverage)
Annual Total Layer Total Layer
Insurer Limits Provided
Premium Limits Premiums
Hiscox Ins. Co. $1,250,000 $242,500
Great Lakes Ins.
$2,500,000 $192,500
Co.
Velocity Risk
$10,000,000 $1,472,500
$1,250,000 $312,500
Underwriters
Westchester
Surplus Lines Ins. $5,000,000 $725,000
Co.
Layer 2 (Excludes Named Storm Wind and Flood Coverage)
$244,937,711
Landmark
excess of $10 $87,936 $244.937,711 $87,936
American Ins. Co.
million
Total Program
$254,937,711 $1,560,436
The policy is subject to the following deductibles.
Buildings and Contents $50,000 except Named Windstorm and Flood losses
EDP Equipment $50,000 except Named Windstorm and Flood losses
Contr $5,000 except $50,000 for Named Windstorm losses
Towers and Communication Equipment $5,000 except $50,000 for Named Windstorm losses
EMAS $50,000 except Named Windstorm and Flood losses
Named Wind Storm $1,000,000 per location/per occurrence
Flood 5% of the value damaged
All of the insurers participating in the expiring program enjoys a favorable rating from the AM Best
Company.
insurance broker in the world and has the technical expertise to respond to
Property underwriters are typically reluctant to issue formal proposals 2 months of the effective date.
Marsh has been able to provide a preliminary structure of the program
premium. While the terms and conditions of the renewal proposal are comparable to the expiring policy,
some of the insurers are being replaced and the percentage of the program they are taking will change.
Following is how the program will be structured and a breakdown of the annual cost.
Layer 1 (Includes Named Storm Wind and Flood Coverage)
Annual Total Layer Total Layer
Insurer Limits Provided
Premium Limits Premiums
Lloyds of London. $2,500,000 $600,000
Sompo
$2,500,000 $450,000
International
$10,000,000 $1,962,000
Westchester
Surplus Lines Ins. $5,000,000 $912,000
Co.
Layer 2 (Excludes Named Storm Wind and Flood Coverage)
$256,958,616
Landmark/RSUI excess of $10 $107,465 $256,958,616 $102,465
million
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Total Program
$266,958,616 $2,064,465
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Q/9/b
Marsh is continuing to negotiate with potential insurers that has the capability and desire to participate in
They strongly believe that their negotiations will result in significant
reductions in the premiums reflected in the above chart.
536,989 (35.16%). I just assisted
another governmental entity located in Monroe County with their Property renewal and their premiums
went up in the 10% range. I portion of the increase is attributable to the Insured Values increasing by over
$10 million. In all reality, it is difficult to structure a quality Property program in Monroe County.
Marsh is continuing efforts to obtain better pricing or improved terms. The proposal presented above
represents the worst case scenario.
Attached is a side-by-side comparison of the major features of the expiring program compared to the
proposed 5/1/22 to 5/1/23 program.
Marsh proposed an annual premium of $15,000
represents an increase of $1,710 (12.9%). The percentage increase is consistent with that being
experienced by other clients Interisk has the pleasure of serving. The side-by-side includes a comparison of
the expiring Boiler and Machinery to the one that is being proposed.
It is recommended that the County renew its Property and Boiler and Machinery insurance for the 5/1/22 to
5/1/23 policy term for an annual premium not to exceed $2,069,465 as being proposed by Marsh.
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
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Q/9/c
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ROGRAM
P
or better
-
Layer 2
Layer 1
$350,000
$4,123,991$7,475,733
$11,559,245
$10,000,000$10,000,000
$10 Million
$247,573,638$266,958,616
$266,958,616
All A
Renewal Proposal
Lloyds of London (25%)
NSURANCE
Excludes Wind and Flood
I
Includes Wind and Flood
Sompo Internatioonal (25%)
Landmark American Ins. Co.
Westchester Surplus Lines (50%)
$244,937,711 excess of $10 Million
LORIDA
ROPERTY
F
ACHINERY
P
,
M
1
OUNTY
ENEWAL
C
R
ERSONAL
P
90
&
OILER AND
B
or better
ONROE
,937,711
-
EAL
Layer 2
M
$350,000
R
$4,115,043
$7,475,733
AND
$11,559,245
$10,000,000$10,000,000
Marsh USA)
$230,218,9$255,067,711$254
(
All A
Current Program
Hiscox Ins. Co. (12.5%)
Excludes Wind and Flood
Layer 1
Great Lakes Ins. Co. (25%)
Landmark American Ins. Co.
$10 Million
Westchester Surplus Lines (50%)
$244,937,711 excess of $10 Million
Velocity Risk Underwriters (12.5%)
ROPERTY
P
3
Includes Wind and Flood
2
/20
-
2
2
(s)
20
Limits
-
Total
PITO
LimitsLimits
Values
EMAS
Named
Liability
ContentsLimits of
Insurer
Sub
EquipmentEquipmentWindstorm Flood Sub
Towers and
Contractors
Total Insured Buildings and
Overall Policy
AM Best Rating
Communication
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Q/9/c
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rm and Flood losses
ed Windstorm losses
64,465
YesYesYesYesYes
ACV
All Risk
he value damaged
$2,0
Replacement Value
Renewal Proposal
5% of t
ROGRAM
P
$1,000,000 per location/per occurrence
$50,000 except Named Windstorm and Flood losses$50,000 except Named Windsto$5,000 except $50,000 for Named Windstorm losses$5,000 except $50,000 for Nam$50,000 except Named Windstorm
and Flood losses
NSURANCE
I
LORIDA
ROPERTY
F
ACHINERY
P
,
M
2
OUNTY
!!!!!
ENEWAL
C
R
ERSONAL
P
YesYesYesYesYes
ACV
All Risk
&
OILER AND
$1,527,476
Marsh USA)
B
(
ONROE
Current Program
Replacement Value
EAL
M
R
5% of the value damaged
AND
$1,000,000 per location/per occurrence
ROPERTY
$50,000 except Named Windstorm and Flood losses$50,000 except Named Windstorm and Flood losses$5,000 except $50,000 for Named Windstorm losses$5,000 except $50,000 for Named Windstorm
losses$50,000 except Named Windstorm and Flood losses
P
23
/20
!!!!!
2022
Storm
and Contents
Wind
Flood
EMAS
Premium
Comments
Blanket Rate
Deductibles
Alternate Site
Coverage Form
Settlement Basis
EDP Equipment
Agreed Amount?
Blanket Coverage?
Mobile Equipment
Named
BuildingsBuildings and Contents
Coverage Provided for EMAS
Permission Granted to Rebuild on
New/Substitute properties added at
Towers and Communication Equipment
!!!!!
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YesYesYes
A++
None
ROGRAM
$15,000
P
$100,000,000
Comprehensive
Replacement Cost
Renewal Proposal
Hartford Steam Boiler
and Refrigerating Equipment
$5,000 except $25,000 per HP for AC
NSURANCE
I
or AC
INERY
LORIDALORIDA
FF
ACH
,,
ACHINERY
M
M
3
YesYesYes
A++
OUNTYOUNTY
None
ENEWAL
$13,290
CC
R
$100,000,000
(Marsh USA)
Comprehensive
Replacement Cost
Current Program
OILER AND
Hartford Steam Boiler
B
OILER AND
and Refrigerating Equipment
ONROE ONROE
B
MM
$5,000 except $25,000 per HP f
AND
ROPERTY
P
23
/20
Insurance
Limits
Insurer
-
Premium
Coverage
DeductibleComments
2022
Co
Blanket Basis?
Agreed Amount
A.M Best Rating
State inspections
Settlement Basis?
Will Insurer provide the required
MONROE COUNTY BOARD OF COUNTY April 4, 2022 May 1, 2022 to May 1, 2023 PROPERTY/PROFESSIONAL LIABILITY INSURANCE RENEWAL PROPOSAL COMMISSIONERS
MARSH • Kip.Bray@marsh.com 404 625 7955Placement Carl.Patchke@marsh.com 3516-838(954) Claims Consultant Carl Patchke Claims Brian.V.Fitzsimmons@marsh.com-(561) 7023502-838(954) Brian
FitzsimmonsClient Executive @marsh.com Andrew.Pickle404 995 2556 Placement Andrew Pickle LiabilityMedPro Andrew.Barakat@Marsh.com 324 8473+1 (347) Placement BarakatAndrew Holden.Adams@Marsh.com(954)
838 3400 Holden Adams @marsh.com Diana.Garcia954 235 8414 (Diana GarciaAccount Executive Account Executive LiabilityMedProProperty MARSH SERVICE TEAM Monroe County Board of County Commissioners
2
Property Insurance Program: 5/1/2021 Earthquake Annual Aggregate50%$1,450,000Weschester* 1,527,476Renewal: $Expiring: $1,335,680100%$87,936Landmark/RSUI*$5M100%$300,000Markel50%$385,000Rivington
(Great Lakes)*25%$970,000Hiscox*25%$1,250,000VelocityU.S. DirectWholesaleBowring SingaporeBowring ShanghaiBowring LondonBowring BermudaBowring Zurich Market Access Points Premium: $13,290
($12,186 expiring) Minimum$25,00 Per Horsepower, $5,000 Except A/C and Refrigerating Equipment Deductible: $5,000 per occurrence Limits: $100,000,000 via HSB:jurisdictional inspectionsEquipment
Breakdown, including ** US FET TAXES* SURPLUS LINES TAXES / FEES NOTES ADDITIONAL FEES / TAXES$254,937,711$5M x $5MPREMIUMLIMITS 4/19/2022 4:52 PMRev. Date: CONDITIONSTHIS IS A SUMMARY:
PLEASE REFER TO BINDER AND POLICY FORM FOR COMPLETE LISTING OF DEDUCTIBLES, TERMS AND $5,000 except $50,000 for Named WindstormTowers:$5,000 except $50,000 for Named WindstormEDP:$5,000
except $50,000 for Named WindstormContractors Equip:5% of TIV at each location, subject to a minimum of $25,000 and maximum of $100,000All Other:5% of TIV at each location, subject
to a minimum of $1,000,000 per occurrence.Zone A/V:Flood$100,000 per occurrenceEarthquake:$1,000,000 per location per occurrenceNamed Windstorm:$50,000 per occurrence, exceptAll Perils:KEY
DEDUCTIBLES:Monroe County 5/1/2022–
Property Insurance Program: 5/1/2022 Earthquake Annual Aggregate50%$1,824,000Weschester* Renewal: $2,079,4651,527,476$Expiring: 100%$102,465Landmark/RSUI*$5M100%$300,000Markel$900,00050%Sompo50%$1,2
00,000LondonU.S. DirectWholesaleBowring SingaporeBowring ShanghaiBowring LondonBowring BermudaBowring Zurich Market Access Points Indication: Not a firm quote$15,000 Premium: Minimum$25,00
Per Horsepower, $5,000 Except A/C and Refrigerating Equipment Deductible: $5,000 per occurrence Limits: $100,000,000 via HSB:jurisdictional inspectionsEquipment Breakdown, including
** US FET TAXES* SURPLUS LINES TAXES / FEES NOTES ADDITIONAL FEES / TAXES$266,958,616$5M x $5MPREMIUMLIMITS 4/19/2022 4:52 PMRev. Date: CONDITIONSTHIS IS A SUMMARY: PLEASE REFER TO
BINDER AND POLICY FORM FOR COMPLETE LISTING OF DEDUCTIBLES, TERMS AND $5,000 except $50,000 for Named WindstormTowers:$5,000 except $50,000 for Named WindstormEDP:$5,000 except $50,000
for Named WindstormContractors Equip:5% of TIV at each location, subject to a minimum of $25,000 and maximum of $100,000All Other:5% of TIV at each location, subject to a minimum of
$1,000,000 per occurrence.Zone A/V:Flood$100,000 per occurrenceEarthquake:$1,000,000 per location per occurrenceNamed Windstorm:$50,000 per occurrence, exceptAll Perils:KEY DEDUCTIBLES:Monroe
County 5/1/2023–