Item D29
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: December 20, 2006
Division: Emolovee Services
Bulk Item: Yes lL No
Department: Risk Management Office
Staff Contact PersonIPhone#:Maria L. Slavik
X3178
AGENDA ITEM WORDING: Approval to accept renewal with Arthur J. Gallagher to provide
Airport Public Officials Liability Insurance at a premium of $18,736.00.
ITEM BACKGROUND: Present policy expires 12/20/06. Coverage is for losses arising out of
the acts, errors or omissions of an Official, Board Member, Employee or Volunteer of Monroe
which constitutes a breach of duty that is imposed by law or employment contract and which
arise out of the County's Airport operations.
PREVIOUS RELEVANT BOCC ACTION: On 11/16/05, the BOCC previously approved the
current policy which expires 12/20/06.
CONTRACT/AGREEMENT CHANGES: The term of the renewal policy will be for 19 months
which will extend policy term to bring the expiration date of the Airport Public Officials Liability
concurrent with the Airport Liability. The new lower rate for the Public Officials liability
premium is held until July 2008 renewal. This represents a decrease of $1,053 or 5% lower then
the expiring premium.
STAFF RECOMMENDATIONS: Approval to renew the policy as submitted by the Insurance
Agent, Arthur J. GaUagher for the period of 12/20/06 -7/27/08.
TOTAL COST:
$18,736.00
BUDGETED: Yes ~ No
COST TO COUNTY: $18.736.00
SOURCE OF FUNDS:
Ad Valorum
REVENUE PRODUCING: Yes NoX AMOUNTPERMONTH_ Year_X
APPROVED BY: County Atty _ ~rchasing _ Risk Management ~
DOCUMENTATION:
Included X
Not Required_
DISPosmON:
AGENDA ITEM #
Revised 11/06
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract with: Arthur 1. Gallagher & Co Contract #_
Effective Date: 12/20/2006
Expiration Date: 7/27/2008
Contract PurposelDescription:
Airport Public Officials Liability Renewal
Contract Manager: Maria Slavik 3178 Risk Management #7
(Name) (Ext.) (Department/Stop #)
for BOCC meeting on 12/20/06 Agenda Deadline: 12/05/2006
CONTRACT COSTS
Total Dollar Value of Contract: $ $18,736.00 Current Year Portion: $
Budgeted? Yes~ No D Account Codes: 503-08502-530-450-_
Grant: $ _-_-_-_-_
County Match: $ _-_-_-_-_
- - - -
-----
ADDITIONAL COSTS
Estimated Ongoing Costs: $-"yr For:
(Not included in dollar value above) (eg. maintenance, utilities, janitorial, salaries, etc.)
CONTRACT REVIEW
Changes Date Out
Date In Needed if ~~er
Division Director \'d.S.do. YesD No 'd.5.o~
~k Manag~ent jl5C6 YesD NoQ/ 11J. '~J~ I d- -:5-ob
IZ.?~ CY 12.~5"~ YesD NO~-C~ 12-/5/0c;
o .M.B./Purchasing
County Attorney ~-5.0(" YesDNo~ ~~dJ~ /'2--/ '> ~~
Comments:
OMB Form Revised 2/27/01 MCP #2
INTERISK
CORPORA TION
Risk Management
Employee Benefits
1111 North Westshore Boulevard
Suite 208
Tampa, FL 33607-4711
Phone (813) 287-1040
Facsimile (813) 287-1041
Consultants
December 4, 2006
Ms. Maria Slavik
Risk Management Specialist
Monroe County
502 Whitehead St.
Key West, Florida 33040
Subject: Renewal of Airport Public Officials Liability Insurance:
Dear Maria:
The County's Airport Public Officials Liability insurance expires on December 20, 2006. The expiring
premium is $19,789. Arthur 1. Gallagher has been exploring the insurance market place for a renewal
policy. Gallagher was also asked to explore the possibility of providing an extended policy term to July 27,
2008 so that the expiration of the Public Officials policy would be consistent with the County's Airport
Liability policy.
Gallagher submitted a proposal from the American Home Assurance Company for the period of December
20,2006 to July 27,2008 for an annual premium of$18,736. American Home enjoys a favorable rating
from the AM Best and Company, the leading evaluator of insurance company operations. The terms of
the renewal proposal are consistent, and in some cases improved, over those provided by the expiring
policy. One of the more improvements is the elimination of a Retrospective Date. The expiring policy
contained a Retrospective Date of 12/20/00. With the elimination of the Retrospective Date, the County
now has "Pull Prior Acts" coverage. This is viewed as a significant improvement.
Since Gallagher has submitted a proposal that is:
1) Provides the same, and in some cases, improved Coverages;
2) The proposed premium is $1,053 (5%) lower then the expiring premium;
3) The term of the renewal policy will be for 19 months that will allow the County to have common
expiration dates for its Airport Liability and Airport Public Officials Liability;
and
4) Coverage would be provided by a quality insurer
It is recommended that the County renew its Airport Public Officials Liability policy as proposed by Arthur
1. Gallagher for the period December 20, 2006 to July 27, 2008.
As always, please do not hesitate to call if you have any questions.
Cordially,
INTERISK CORPORATION
) /:5
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Sidney G. Webber
CPCU, ARM
Cc: Teresa Aguiar
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MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
RENEWAL PROPOSAL
for
AIRPORT PUBLIC OFFICIALS LIABILITY
INCLUDING EMPLOYMENT PRACTICES LIABIL TIY
DECEMBER 20, 2006 - DECEMBER 20, 2007
Submitted Bv:
Jori L. Van del' Voort, ARM
Area Vice President
jori_ van_der_ voort@ajg.eom
Kathy Hill, CIC
81'. Account Manager
kathy JliIl@ajg.com
Arthur .J. Gallaghcr Risk Management Sct'Vices
A..thur J. Gallagher & Co. (Florida)
2255 Glades Road, Suite 400E
Boca Raton, FL 33431
Phone: 561-995-6706 Fax: 561-995-6708
Datc Presented:
December 1, 2006
TIllS PROPOSAL IS ISSUED AS A MATTER OF INFORMATION ONLY AND DOES NOT AMEND.
EXTEND, OR ALTER THE COVERAGE PROVIDED BY THE ACTUAL INSURANCE POLICIES.
MONROE COUNTY BOCC
TRANSMITTAL LETTER
/111!!!1. . .ee~..;. .....
.rsl
Sent Via Email
Dccember 1,2006
Ms Maria Slavik
Monroe County Board of Conunissioners
1100 Simonton Street
Key West, FL 33040
RE: Airport Public Oft1cials Liability - Renewal
Policy Term: 12/20/06 to 7/27/08
On behalf of Arthur J. Gallagher & Co. and the Account Service Team, we are pleased to
provide our proposal for the Airport Public Oft1cials Liability policy tenn. This proposal
includes the renewal terms negotiated by Arthur J. Gallagher & Co. (Florida) for the following
coverage's:
· Airport Public Oft1cials Liability including Employment Practices Liability
Provides co verage for slims that the insured becomes legally obUgated to pay as damages
resulting/i'om claims. to which this insurance applies, against the insured by reason of
public officials wrongful acts or employment practices wrongfit! acls, (as defined by the
policy), rendered in discharging duties on behalf of the public entity named in the
declaralio1lS.
Pursuant to our pre-renewal convcrsations with you and Sid Wcbber, and in compliance with
Florida Due Diligence, we submitted the County application to American Home Assurance
Co./AIG, which is an admitted catTier in the State of Florida. Since American Home has offered
a viable quote for renewal, under Florida State law, we can not offer the renewal quote from
surplus lines/non-admitted Illinois Union Insurance Co.
The American Home Assurance quote is a very competitive product and the rate is 40 % less
than the expiring rate. Also, we are able to offer an extended policy tenn to bIing the expiration
date of the Airport Public Officials Liability concurrent with the Airport Liability renewal in
July. Along with the added convenience of having your Airport renewals due one time during
the year, the new lower rate for the Public Officials liability premium is held until July 2008
renewal.
Final result is that we are able to otTer a renewal quote for 19 months that is less than the 12
months expiring premium.
I 12/20105- I 2/20/06
$19,789
=r- 12/20/06 to 7/27/08
__.C.__.____._.~ $18,736
NIPUBLPROPIMONROE.BCC\AIRPORTI2006.2007\MoIlroC UOCC Airport Liability Proposal I L06.doc
MONROE COUNTY BOCC
TRANSMITTAL LETTER
(Continued)
After you have had the opportunity to review the American Home Assurance Co. proposal,
please contact us to discuss any questions that you may have, or to provide further clarification
of any coverage areas.
Note: that we are still pending a response to increasing the aggregate limit and will advise as
soon as possible.
We appreciate your trust in our service, We value your business and are happy to have Monroe
County as a client.
Sincerely,
Jori L. 'Van cfer %ort
Jori L. Van del' Vaart, ARM
'Kfltliy Jfi{{
Kathy Hill, crc
N:\PUBLPROPIMONROF.BCC\t\IRPORT\2006.2007\Mol\foc 80ec Airport Liability Proposalll.06.doc