Item C29BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: May 16, 2007
Division: Employee Services
Bulk -Item:- Ye& X - Na _ Department. Risk Man -
Staff Contact Person/Phone#:Maria L. Slavik X3178
AGENDA ITEM WORDING: Approval to accept proposal from Florida League of Cities to
provide Professional Liability Insurance for Air Ambulance Nurses with Admiral Insurance
Company at a cost of $32,535.
ITEM BACKGROUND: Coverage is for Professional Liability extending coverage to the nurses
participating in the County's Air Ambulance. The proposed policy would provide limits of $1
million per claim, subject to an annual aggregate of $3 million. There would be a $5,000
deductible.
PREVIOUS RELEVANT BOCC ACTION: None
CONTRACT/AGREEMENT CHANGES: None
STAFF RECOMMENDATIONS: Approval to accept the proposal as submitted by the Insurance
Agent, Florida League of Cities for the period of 4/26/07 — 4/26/08. Coverage was purchased by the
direction of the County Administrator on 4/26/07.
TOTAL COST:__$32,535
BUDGETED: Yes No X
COST TO COUNTY:$32,535 SOURCE OF FUNDS: Ad valorum
REVENUE PRODUCING: Yes _ No X AMOUNT PER MONTH Year
b �
APPROVED BY: County Atty ✓ OMB/Purchasing Risk Management --
DOCUMENTATION: Included X Not Required
DISPOSITION: AGENDA ITEM #
Revised 8/06
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract with: Florida League of Cities Contract #
Effective Date: 4/26/07
Contract Purpose/Description:
Professional Liability Insurance
xpiration ate: 4 26/08
Contract Manager: Maria Slavik
(Name)
for BOCC meeting on 5-16-07
3178 Employee Services #1
(Ext.) (Department/Stop #)
A enda Deadline: 5-1-2006
CONTRACT COSTS
Total Dollar Value of Contract: $ $32,535 Current Year Portion: $
Budgeted? YesL No Z9 Account Codes: 503-08502-530-450-
Grant: $
County Match: $
ADDITIONAL COSTS
Estimated Ongoing Costs: $ /yr For:
(Not included in dollar value above) hPa maintananoo
CONTRACT REVIEW
etc.
Changes
Date Out
Division Director
Date In
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I NTERISK CORPORATION
Consultants 1111 North Westshore Boulevard
Suite 208
Risk Management Tampa, F1 33607-4711
Employee Benefits Phone (813) 287-1040
Facsimile (813) 287-1041
April 21, 2007
Ms. Maria Slavik
Risk Management Specialist
Monroe County
1100 Simonton St
Suite 268
Key West, Florida 33040
Subject: Professional Liability Insurance for Air Ambulance Nurses
Dear Maria:
In the later part of March, 2007 Ms. Cynthia Hall of the County Attorney's office contacted Risk
Management and advised that she was in the process of developing a contract with various local hospitals
to provide helicopter ambulance services from one facility to another. The intent was to use the helicopter
owned by the County Sheriff's Office for these services. It was (and continues to be) understood that the
Sheriff's Office currently provides helicopter ambulance services for trauma victims from the scene of an
accident to local health care facilities. The inter -facility service would allow the Sheriff's Office to better
utilize its helicopter.
Ms. Hall indicated that the local hospitals were requiring a licensed nurse to accompany patients during the
inter -facility transfers. Ms. Hall was advised that while the County's current policy issued by the Florida
League of Cities provides limited Professional Liability insurance; the protection only extends to the
County's Medical Attendants and Medical Director pursuant to Section 401.265 of the Florida Statutes and
specifically excludes any coverage for professional services rendered by physicians and/or nurses. In an
effort to obtain Professional Liability insurance that would extend to nurses, the Florida League was
requested to obtain a proposal for coverage that would extend to nurses. The League initially indicated that
such coverage was available and the premium would be approximately $10,000.
For the past several weeks you and I have been monitoring the League's efforts and when it became
evident that the League was having difficulty obtaining the desired insurance, Marsh USA was contacted
and requested to locate an insurer that would provide the necessary insurance and submit to Risk
Management a proposal for evaluation.
The League has now submitted a proposal from the Admiral Insurance Company for Professional Liability
Insurance that would extend coverage to the nurses participating in the County's Air Ambulance Services.
Admiral is a well recognized insurance company and enjoys a favorable rating from the A.M. Best
Company, the leading evaluator of insurance company operations. The proposed policy would provide
limits of $1 million per claim, subject to an annual aggregate of $3 million The County would have to
absorb the first $5,000 of each claim as a deductible. The proposed premium of this policy was $32,535. It
should be noted that the League received declinations from Scottsdale, Western World and Burlington
Insurance Companies and a tentative proposal from Evanston Insurance Company for a minimum premium
of $50,000.
The only company Marsh has located that expressed an interest in providing the necessary coverage is from
RSUI Insurance company and they have indicated that a minimum premium of $30,000 would apply.
Another application would have to be completed to receive a formal proposal from RSUI. Based on the
way NM'sh ItRUCated that RSUI y be m m ffo—vidifig Frofe-§§ioh51 LiabiliFyinsurance for the
County, it is believed that the ultimate premium would be significantly higher than the $30,000 indicated
minimum premium It is also believed that RSUI may only offer limits of $ l million per claim and $ l
million annual aggregate. These limits are less than those being offered by Admiral.
Needless to say the number of insurance companies with the ability and desire to offer Professional
Liability Insurance that would extend coverage to nurses participating in air ambulance activities is
significantly limited. It is believed that the policy offered by the Admiral Insurance Company through the
Florida League of Cities represents the most comprehensive protection available and is competitively
priced.
As always, please do not hesitate to call if you have any questions.
Cordially,
INTERISK CORPORATION
Sidney G. Webber
CPCU, ARM
CC: Teresa Aguiar