Item O06 06
BOARD OF COUNTY COMMISSIONERS
COUNTY of MONROE Mayor Craig Cates,District 1
The Florida Keys Mayor Pro Tern Holly Merrill Raschein,District 5
Michelle Lincoln,District 2
James K.Scholl,District 3
m' David Rice,District 4
Board of County Commissioners Meeting
September 20, 2023
Agenda Item Number: 06
2023-1416
BULK ITEM: No DEPARTMENT: Risk Management
TIME APPROXIMATE: STAFF CONTACT: Brian Bradley
AGENDA ITEM WORDING: Approval of proposal from Florida League of Cities to renew the
2023-2024 liability insurance and excess workers' compensation insurance program for an annual
premium of$477,438 and authorization for the Risk Manager to sign all necessary documents.
ITEM BACKGROUND:
The policy provides insurance coverage for sums which the County may become legally obligated to
pay as a result of bodily injury,property damage, or personal injury arising out of its operations, above
a self-insured retention(SIR) of$200,000 per person or $300,000 per incident for each claim for
matters covered by the policy (primarily tort claims and constitutional law defenses). This portion of the
policy includes reimbursement for legal fees above the SIR and 50% sharing of attorneys' fees for
defense of employment law claims at the administrative law level(primarily employment law claims at
the Equal Employment Opportunity Commission level). Finally, the policy also provides coverage for
workers' compensation matter above a self-insured retention, currently $500,000 per matter.
FLOC has proposed to renew the program for an annual premium of$477,438. This will result in the
County's annual premium increase of$37,478 (8.5%). The majority of this increase is due to the County
increasing its payroll by nearly $4 million. This impacts both the General liability and Workers'
Compensation premium. Another contributing factor is the increasing number of vehicles added to the
County's auto physical damage coverage. Risk Management has been auditing this list for accuracy. The
County's Risk Consultant letter providing analysis recommending this renewal is attached.
PREVIOUS RELEVANT BOCC ACTION:
Risk issued RFP May 2022. BOCC approved proposal August 17, 2022.
CONTRACT/AGREEMENT CHANGES:
FLOC Insurance proposal.
STAFF RECOMMENDATION: Approval to accept insurance proposal from Florida League of
Cities at a cost of$477,438 to be paid in quarterly installments for the period of October 1, 2023 to
September 30, 2024, and approval for Risk Management to execute all necessary documents.
3851
DOCUMENTATION:
2023 Evaluation Letter.doc
627 43141 Notice of Change in Policy Terms_FMIT-2023-2024 EBC - SVLR.pdf
0386 Monroe County BOCC Renewal.pdf
FINANCIAL IMPACT:
CC 08502 SC 00054
CC07502 SC00054
3852
InteriskCorporation Risk Mgt.&Employee Benefits
Consultants
1101 Red Maple Circle N.E.,St. Petersburg, Florida 33703-6318 — telephone: 813-287-1040
www.interisk.net
August 18,2023
Brian Bradley RMLO,FCRM
Risk Manager
Monroe County Attorney's Office
1111 12th Street, Suite 408
Key West,FL 33040
Ms.Jacklyn Flatt
Risk Administrator
Monroe County
1111 12t'Street
Suite 408
Key West,Florida 33040
Mr.Mark A. Gongre
Safety&Workers Comp Administrator
Monroe County
1100 Simonton Street
Suite 2-268
Key West, Florida 33040
Subject: Renewal of Florida Municipal Insurance Trust(FMIT)program
Hey Guys:
I have reviewed the proposal from the Florida Municipal Insurance Trust(FMIT) for Monroe County's
2023/24 insurance program submitted by the Florida League of Cities. The coverages included in the
program are as follows:
➢ General Liability
➢ Cyber Liability
➢ Public Officials Liability(the FMIT refers to this coverage as Professional Liability)
➢ Automobile Liability
➢ Automobile Physical Damage
➢ Excess Workers' Compensation
The premiums for the 2022/23 policy period are as follows:
Coverage Premium
General Liability $136,075
C ber Liability Included in General Liability
Public Officials Liability Included in General Liability
Automobile Liability $58,169
Automobile Physical Damage $13,368
Excess Workers' Compensation $232,348
Total $439,960
3853
The FMIT has proposed to renew the program for an annual premium of$477,438. Following is aside-
by-side comparison of the 2022/23 premiums and those being proposed for the 2023/24 program. The
premiums reflected for the 2022/23 police year are those at policy inception and do not include any
adjustments the County may have made during the year.
Coverages 2022/23 Premium 2023/24 Premium Increase/(Decrease) Percent of
Increase
General Liability $136,075 $143,391 $7,316 5.3%
C ber Liability Incl.in General Liability $10,500 N/A N/A
Public Officials Liability Incl.in General Liability Incl.in General Liability N/A N/A
Automobile Liability $58,169 $55,429 $(2,740) (4.7%)
Automobile Physical $13,368 $18,306 $4,938 36.9%
Damage
Workers' Compensation $232,348 $249,812 $17,464 7.5%
Total $439,960 $477,438 $37,478 8.5%
While there will be some minor changes to the terms and conditions of FMIT's 2021/22 policy,it has been
confirmed that none of the changes will materially impact the coverages being provided. It has been
confirmed that the 2023/24 coverages will not include any COVID-19 or Communicable Disease
exclustions or limitations.
This will result in the County's annual premium increase by$37,478 (8.5%). The majority of this increase
is due to the County increasing its payroll by nearly$4 million. This impacted both the General Liability
and Workers' Compensation premium. One of the key underwriting factors the FMIT uses in establishing
the General Liability premium is payroll.
I do have a concern with the Automobile Physical Damage coverage. According to Mike Morrell the the
County has added 60 additional vehicles to the ones that have Physical Damge on. It is recommended that
this be double checked. It seems extremely high to me.
Subject to verifying the number of vehilces requiring Physical Damage it is believed that the proposed
FMIT premium for the 2023/24 policy term is attractive and it is recommended that the County renew its
General Liability,Cyber Liability,Public Officials Liability,Automobile Liability Automobile Physical
Damage and Excess Workers' Compensation coverage for the policy term of 10/1/23 to 10/1/24 as being
proposed by the FMIT.
Please do not hesitate to call if you have any questions or concerns.
3854
Cordially,
INTERISK CORPORATION
f'
. ,//"-.
Sidney G.Webber
CPCU,ARM
3855
NOTICE OF CHANGE IN POLICY TERMS
Florida Municipal Insurance Trust (FMIT)
2023-2024 Coverage Year
GENERAL LIABILITY/PUBLIC OFFICIALS LIABILITY COVERAGE ENDORSEMENTS
• FLORIDA MUNICIPAL INSURANCE TRUST PRIOR ACTS ENDORSEMENT
PUBLIC OFFICIALS ERRORS AND OMISSIONS AND EMPLOYMENT PRACTICES
LIABILITY AND SEXUAL ABUSE LIABILITY (FMIT PA EO)
Added Sexual Abuse Liability Coverage. The Sexual Abuse or Sexual Action coverage
provided by the endorsement will be subject to a limit which is reduced by expenses
incurred by the Trust to investigate, settle, or defend any Claim.
• SPECIFIC EXCESS ENDORSEMENT SELF-INSURED RETENTION MEMBERS —
GENERAL LIABILITY (FMIT SE SIR GL)
Expanded claim reporting requirements in section G. to all claims, opened or closed.
Added provisions requiring Designated Member to provide information reasonably related
to claims that are or could be covered and specifying the requirements for the Designated
Member to provide loss run reports for preceding years.
Added section N. which prohibits the Designated Member from settling claims which
exceed or may exceed the retention without the written consent of the Trust.
AUTOMOBILE LIABILITY AND PHYSICAL DAMAGE COVERAGE
• SPECIFIC EXCESS ENDORSEMENT SELF-INSURED RETENTION MEMBERS —
AUTOMOBILE LIABILITY (FMIT SE SIR AL)
Expanded claim reporting requirements in section G. to all claims, opened or closed.
Added provision requiring Designated Member to provide information reasonably related
to claims that are or could be covered and specifying requirements for the Designated
Member to provide loss run reports for preceding years.
Added section N. which prohibits the Designated Member from settling claims which
exceed or may exceed the retention without the written consent of the Trust.
PROPERTY COVERAGE
• FMIT PROPERTY, ALLIED LINES AND CRIME DECLARATIONS (FMIT PROP DEC)
Revised Named Storm Deductible section to refer to the Named Storm Coverage and
Percentage Deductible Endorsement for applicable percentage deductible.
Updated Schedule to reflect current form numbers and current forms within the policy.
• FMIT PROPERTY COVERAGE AGREEMENT(FMIT PROP CA)
Page 1 of 5
3856
I. COVERAGE, TERMS, AND CONDITIONS OF ALL PROPERTY COVERAGE
Removed section I. B. altering the Building and Personal Property Coinsurance
alteration.
Consistent with Florida law, added new section I. B. requiring notice of property
claims within one (1) year for initial claims or reopened claims and within eighteen
(18) months for supplemental claims. Added definition for "reopened claim" and
"supplemental claim."
Added new section I. C. regarding covered losses which prohibits transfers to third
parties of any interests in such losses, payments for such losses, or claims for any
such losses.
Added new section I. D. which prohibits the granting of a financial interest in any
claim to a third party.
Added new section I. E. expressly authorizing the Trust to adjust values of
scheduled and insured property values during the coverage term and providing for
pro-rata adjustments of premium due in such cases.
Added new section I. F. which contains the provisions already existing in FMIT
Appraisal Clause Amendment (FMIT APPRAISAL 1020). The FMIT Appraisal
Clause Amendment (FMIT APPRAISAL 1020) will be deleted.
II. DEFINITIONS
Clarified that definition A. Blanket Coverage is subject to the fulfillment of all policy
conditions.
III. EXCLUSIONS
Revised section A. 3. to correct reference from the FMIT PROP 3 form to the
Building and Personal Property Form (FMIT CP 00 10 04 02).
PROPERTY COVERAGE AGREEMENT ENDORSEMENTS
• CAUSES OF LOSS— SPECIAL FORM (CP 10 30 04 02)
Update only to reflect the existing coverage limit of$250,000 for SECTION F. 1. Property
in Transit, which was moved from COVERAGE EXTENSIONS FMIT PROP 03 (as the
FMIT PROP 03 form is being eliminated).
• FLOOD COVERAGE EXTENSION (FMIT FLOOD)
Amended exclusions to include any piers, wharves, or docks.
• MISCELLANEOUS PROPERTY COVERAGES (FMIT MPC)
Page 2 of 5
3857
Update only to add reference to the BUILDING AND PERSONAL PROPERTY
COVERAGE FORM CP 00 10 04 02 instead of reference to COVERAGE EXTENSIONS
FMIT PROP 03 (as the FMIT PROP 3 form is being eliminated).
• FMIT ASSET SURVEY PROGRAM DISCLOSURE AND ACKNOWLEDGMENT (FMIT
ASSET SURVEY DA)
Revised form to require participation in the FMIT Asset Survey Program. Clarified that the
values determined within the Program will be replacement cost values. Revised language
to include that additional premium will be owed if any property value is increased as a
result of an asset survey. Eliminated Specified Value property coverage from the Program.
• FMIT SPECIFIED VALUE POLICY FORM OF PROPERTY COVERAGE
ACKNOWLEDGEMENT(FMIT SPECIFIED VALUE DA)
Added language allowing the Trust to review and increase Specified Value property
coverage limits and providing that additional premium will be owed in the event of any
coverage limit increase.
• FMIT PROPERTY TURNKEY RECOVERY COVERAGE (FMIT RECOVERY)
Reduced the Turnkey Coverage election period to 90 days. Relabeled "previously closed
claims" to "reopened claims." Added exclusion for non-scheduled property in the open
caused by Named Storm.
• LEASEHOLD INTEREST COVERAGE FORM (CP 00 60 06 95)
Update only to reflect the existing $100,000 aggregate limit per Trust coverage year,which
was moved from COVERAGE EXTENSIONS FMIT PROP 3 (as the FMIT PROP 3 form
is being eliminated).
• NAMED STORM COVERAGE AND PERCENTAGE DEDUCTIBLE ENDORSEMENT
(FMIT PROP 11 NS-A)
Increased Named Storm Percentage Deductible to 5%. Removed coinsurance clarification
that replacement cost value is the applicable value for coinsurance calculation (as this
same language was inserted into the BUILDING AND PERSONAL PROPERTY
COVERAGE FORM (CP 00 10 04 02)). Update only to reflect existing Property Damage
Mitigation Coverage, which was moved from COVERAGE EXTENSIONS FMIT PROP 03
(as the FMIT PROP 03 form is being eliminated.) Relabeled "previously closed claims" to
"reopened claims," consistent with state law. Replaced "landfall date"with "date of loss or
damage occurrence" when referencing Named Storm claim notice requirements.
Consistent with state law, the Named Storm claim notice period was reduced from 2 years
to 1 year for initial claims or reopened claims and from 3 years to 18 months for
supplemental claims. Period required to complete repairs or replacement for entitlement
to full Replacement Cost Coverage was reduced from 3 to 2 years.
• NAMED STORM COVERAGE AND PERCENTAGE DEDUCTIBLE ENDORSEMENT
(FMIT PROP 11 NS-B)
Page 3of5
3858
Increased Named Storm Percentage Deductible to 7.5%. Removed coinsurance
clarification that replacement cost value is the applicable value for coinsurance calculation
(as this same language was inserted into the BUILDING AND PERSONAL PROPERTY
COVERAGE FORM (CP 00 10 04 02)). Update only to reflect existing Property Damage
Mitigation Coverage, which was moved from COVERAGE EXTENSIONS FMIT PROP 03
(as the FMIT PROP 03 form is being eliminated.) Relabeled "previously closed claims" to
"reopened claims," consistent with state law. Replaced "landfall date"with "date of loss or
damage occurrence" when referencing Named Storm claim notice requirements.
Consistent with state law, the Named Storm claim notice period was reduced from 2 years
to 1 year for initial claims or reopened claims and from 3 years to 18 months for
supplemental claims. Period required to complete repairs or replacement for entitlement
to full Replacement Cost Coverage was reduced from 3 to 2 years.
• NAMED STORM COVERAGE AND PERCENTAGE DEDUCTIBLE ENDORSEMENT
(FMIT PROP 11 NS-C)
This is a new Named Storm coverage and deductible form created to permit optional 10%
Named Storm Percentage Deductible. Notwithstanding the deductible, coverage is the
same provided in FMIT PROP 11 NS-A and FMIT PROP 11 NS-B.
• HOUSING AUTHORITY WINDSTORM AND HAIL COVERAGE AND DEDUCTIBLE
ENDORSEMENT(FMIT PROP 11H)
Removed coinsurance clarification that replacement cost value is the applicable value for
coinsurance calculation (as this same language was inserted into the BUILDING AND
PERSONAL PROPERTY COVERAGE FORM (CP 00 10 04 02)). Update only to reflect
existing Property Damage Mitigation Coverage, which was moved from COVERAGE
EXTENSIONS FMIT PROP 03 (as the FMIT PROP 03 form is being eliminated.)
Relabeled "previously closed claims" to "reopened claims," consistent with state law.
Replaced "landfall date" with "date of loss or damage occurrence" when referencing
Named Storm claim notice requirements. Consistent with state law, the Named Storm
claim notice period was reduced from 2 years to 1 year for initial claims or reopened claims
and from 3 years to 18 months for supplemental claims. Period required to complete
repairs or replacement for entitlement to full Replacement Cost Coverage was reduced
from 3 to 2 years.
• COVERAGE EXTENSIONS (FMIT PROP 3)
Eliminated this form. All coverage provisions formerly provided therein were
reincorporated elsewhere in the Property Coverage Agreement, primarily in the BUILDING
AND PERSONAL PROPERTY COVERAGE FORM (CP 00 10 04 02). The elimination of
this form will not result in the loss of any coverage.
• BUILDING AND PERSONAL PROPERTY COVERAGE FORM (CP 00 10 04 02)
o Clarified that A. 5. Coverage Extensions are subject to corresponding deductible;
o Clarified that A. 5. Coverage Extensions limits apply only as stated and do not
increase, or apply in addition to, any other applicable limit of coverage shown in
the Property Coverage Agreement or Declarations;
Page 4 of 5
3859
o Removed reference stating that coinsurance may extend to the A. 5. Coverage
Extensions;
o Reincorporated all applicable coverage from the FMIT PROP 3 form;
o Clarified language in A. 5. a. Newly Acquired Or Constructed Property that no
additional premium is owed if the total insured value applicable to newly acquired
or constructed property is less than $2,500,000;
o A. 5. f. Piers, wharves, and docks —added language excluding the peril of flood;
o E. Loss Conditions 2. Appraisal — provision which was previously replaced by the
APPRAISAL CLAUSE AMENDMENT (FMIT APPRAISAL 1020)was replaced with
a reference to FMIT PROPERTY COVERAGE AGREEMENT (FMIT PROP CA
1023) I. F.;
o E. Loss Conditions 6. Vacancy — added language defining when a building is
"under construction or renovation;" added fungus and fire as excluded causes of
loss; excluded vacant buildings from blanket coverage; increased the loss recovery
reduction to 50%;
o F. Additional Conditions 1. Coinsurance — inserted "replacement cost" as a
modifier of a value. Added language stating that Replacement Cost Value will be
the value used for coinsurance calculations;
o G. Optional Coverages 3. Replacement Cost — amended entitlement to
replacement cost coverage, requiring repairs to be made within a period of 2 years
after loss.
• FMIT Appraisal Clause Amendment (FMIT APPRAISAL)
Form was eliminated and all coverage provisions were reincorporated throughout into
FMIT PROPERTY COVERAGE AGREEMENT (FMIT PROP CA 1023) I. F.
• FMIT Equipment Breakdown Coverage Schedule Commercial Package Policy(FMIT
EBC)
Increased limit for Hazardous Substances coverage from $500,000 to $1,000,000.
WORKERS COMPENSATION AND EMPLOYERS LIABILITY COVERAGE AGREEMENT
• SPECIFIC EXCESS ENDORSEMENT WORKERS COMPENSATION INSURANCE
ENDORSEMENT (FMIT WC SE)
Expanded claim reporting requirements in Section VI (7) to all claims, opened or closed.
Added provision requiring Designated Member to provide information reasonably related
to claims that are or could be covered and specifying requirements for the Designated
Member to provide loss run reports for preceding years.
Page 5of5
3860
1���`TIIKSUTANCE'FUMT
RENEWAL QUOTE FOR 2023-2024
Monroe County Board of County Commissioners
FMIT 0386
Coverage Self Insured Retention Limit Premium
General/Professional Liability $200,000 $5,000,000 $143,391
Cyber Liability $35,000 $2,000,000 $10,500
Automobile Liability $200,000 $5,000,000 $55,429
Automobile Physical Damage Per Schedule $18,306
Workers' Compensation $500,000 Total Payroll
Experience Modification 1.18 10/1/22 $82,752,971 $249,812
TOTAL NET PREMIUM $477,438
*Includes: Drug Free Credit: Yes
Safety Credit: Yes
Please Note: All descriptions of coverage provided herein are intended for illustration and general discussion purposes.
Do not rely upon this communication for coverage. Refer to the FMIT Coverage Agreement(s)for applicable coverage
terms, conditions, limits and obligations.
The premiums quoted above are priced according to the coverage lines presented. Any change or deletion of
coverages may result in re-pricing of remaining coverage lines.
*Please see next page for options if applicable.
3861
'� l III&S lei A114CE T R U 5 F
a c) i,h(r)g P,ho Corn nu^vniti s We f„ofl Horne
RENEWAL QUOTE FOR 2023-2024
Monroe County Board of County Commissioners
FMIT 0386
DEDUCTIBLE/LIMIT OPTIONS
Annual Check Option
Named Storm Deductible Premium Accepted Rejected
Property- Wind Coverage
Option 1 5% $0 0 0
Option 2 7.5% $0 0 0
Option 3 10% $0 0 0
Annual Check Option
Limit Named Storm Deductible Premium Accepted Rejected
Piers, Wharves, and Docks
Boardwalks and Bridges
Wind Coverage
Option 1 . $0 5%or$10,000,whichever is $0 O O
greater
Option 2 $0 7.5%or$10,000,whichever is $0 O O
greater.
Option 3 $0 10%or$10,000,whichever is $0
greater. 0 0
5%, 7.5%or 10%(as selected above)of total insured value per location or a minimum of$10,000 whichever is
greater each and every loss,each location.
Please note: All descriptions of coverage provided herein are intended for illustration and general discussion purposes.
Do not rely upon this communication for coverage. Refer to the FMIT Property Coverage Agreement for applicable
coverage terms, conditions, limits, and obligations.
Special Note: The 5%Named Storm Deductible option will be the default option unless FMIT is notified otherwise by completing and returning this
form to your Account Executive.
3862