Item P04 P4
BOARD OF COUNTY COMMISSIONERS
COUNTY of MONROE i Mayor Holly Merrill Raschein,District 5
The Florida Keys Mayor Pro Tern James K.Scholl,District 3
Craig Cates,District 1
Michelle Lincoln,District 2
' David Rice,District 4
Board of County Commissioners Meeting
September 11, 2024
Agenda Item Number: P4
2023-2898
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
2024-2025 liability insurance and excess workers' compensation insurance program for an annual
premium of$558,576 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$558,576. This will result in the
County's annual premium increase of$81,138 (17%). The majority of this increase is due to the County
increasing its payroll by over $9 million. This impacts both the General liability and Workers'
Compensation premium. One of the key underwriting factors FLOC uses in establishing the General
Liability premium is payroll. Another contributing factor is the increasing number of vehicles added to
the County's auto physical damage coverage. Second, vehicle liability claims have escalated in recent
years. This has prompted FLOC to increase their automobile liability rates by 15%.
The County's Risk Consultant letter providing analysis recommending this renewal is attached.
PREVIOUS RELEVANT BOCC ACTION:
BOCC approved proposal September 20, 2023.
INSURANCE REQUIRED:
No
CONTRACT/AGREEMENT CHANGES:
FLOC Insurance proposal.
STAFF RECOMMENDATION: Approval to accept insurance proposal from Florida League of
Cities at a cost of$558,576 to be paid in quarterly installments for the period of October 1, 2024 to
September 30, 2025, and approval for Risk Management to execute all necessary documents.
DOCUMENTATION:
03 86-2425-Installment FY24-25.pdf
627.43141 Notice of Change in Policy Terms_FMIT-2024-2025.pdf
2024 Evaluation letter font corrected.doc
FINANCIAL IMPACT:
CC 08502 SC 00054
CC07502 SC00054
M
Florida Municipal Insurance Trust
IT First Installment Billing - 24/25 Fund Year
If"II,.CIl IMUINIICIIIIgAII,. IINStllIIIANCII.. TRUST
FMIT# 0386 Invoice Date: 8/15/2024 Bank ACH: Capital City Bank
217 N. Monroe St.
Invoice ID#: INV-40851-Q8C6 Due Date: 10/1/2024 Tallahassee,FL 32301
RTN#/ABA#:063100688 ACCT#:0032620701
ATTN:Brian Bradley Acct Type: Checking
Monroe County Board of County Commissioners Acct Name: Florida Municipal Insurance Trust
1111 12th Street Suite 408 Please make check payable to:
Key West,FL 33040 Florida Municipal Insurance Trust
P.O. Box 1757
Tallahassee, FL 32302-1757
General Cyber Auto Auto Physical Property Workers' Total
Liability Liability Liability Damage Comp.
Gross Premium $164,964 $11,025 $96,606 $34,973 $0 $288,098 $595,666
Incentive Credit $0 $0 ($29,605) ($7,485) $0 $0 ($37,090)
Total Net Premium $164,964 $11,025 $67,001 $27,488 $0 $288,098 $558,576
Coverage Premium Incentive Credit Total Net Premium
General Liability Coverage $41,241.00 $0.00 $41,241.00
Cyber Liability Coverage $2,756.25 $0.00 $2,756.25
Auto Liability Coverage $24,151.50 ($7,401.25) $16,750.25
Auto Physical Damage Coverage $8,743.25 ($1,871.25) $6,872.00
Workers Compensation Coverage $72,024.50 $0.00 $72,024.50
Total Installment Amount $139,644.00
Total Due by 10/1/2024 $139,644.00
NOTE: THIS RENEWAL IS BASED ON ALL COVERAGES. IF ANY OF THE LINES OF COVERAGE ARE NOT RENEWED,THE OTHER LINE PRICING
WILL CHANGE OR COVERAGE OFFERINGS ON THE REMAINING LINES COULD BE WITHDRAWN ALTOGETHER.
POLICIES WILL BE MADE AVAILABLE AFTER OCTOBER 1,2024 AND CAN BE VIEWED AND PRINTED ONLINE ONCE PAYMENT IS RECEIVED.
ELECTRONIC POLICIES ARE ALSO AVAILABLE AFTER OCTOBER 1,2024 UPON REQUEST.
Please see below for a copy of our Premium Installment Plan, Penalty Policy and ACH Instructions.
lP'lle rrnse ire,tuirin a copy of this invoice with youir payrrnent:to t;ll"de Ta11Illall"dassee,office our send ACII II'iinf'orrrnat:iion, Ilfinvoiice Nurrnlbeir
and Arnount:IPaid in an e,rrna'iill to Acc�ouodt IRa�;ca iiv nll�ller,¢�ftciit,iie:^�,coinrn,'r'r'r'rr
PLEASE READ THIS PAGE CAREFULLY
NO COVERAGES, TERMS OR CONDITIONS ARE TO BE ASSUMED
All Trust Programs are Non-Assessable
Terms of this Agreement:
Premiums shown are subject to year-end audit adjustments
All coverages provided by the Florida Municipal Insurance Trust are on an occurrence format. The Florida Municipal
Insurance Trust does not automatically include prior acts (tail)coverage.
2024/25 PREMIUM INSTALLMENT PLAN
First Installment Second Installment Third Installment Fourth Installment
25% minimum due 25% minimum due 25% minimum due 25% minimum due
October 1, 2024 January 1, 2025 April 1, 2025 July 1, 2025
NOTE: If the total net premium is under$6,000.00 the installment provision does not apply
Payment is to be forwarded to the League Office in Tallahassee.
For any other coverages, the premium is billed by the Florida League of Cities and due in full at inception, regardless
of the size of the premium
Forty-five (45) Days Notice of Cancellation and Non-Renewal
Ten (10) Days Notice of Cancellation for Non-Payment of Premium
Note: Coverage summaries provided herein are intended as an outline of coverage only and are necessarily brief. In
the event of loss, all terms, conditions, and exclusions of actual Agreement and/or policies will apply.
Florida Municipal Insurance Trust (FMIT)
ACH instructions to remit payment to FMIT
Bank: Capital City Bank
217 N. Monroe St.
Tallahassee, FL 32301
RTN#/ABA#: 063100688
ACCT#: 0032620701
Acct Type: Checking
Acct Name: Florida Municipal Insurance Trust
Payments for insurance deductibles cannot be made via ACH. Deductible payments should be made by check
and mailed to the Florida League of Cities Orlando office. If you have questions, contact the person whose name is
listed on the deductible invoice.
Please note: When making ACH payments to the FMIT, email the invoice number, payment amount, and a
copy of the invoice for which the payment applies to: accounts receivable@flcities.com. (A PDF image of the
invoice is preferred.) This information will ensure that the funds are applied to your account in a timely
manner.
For questions regarding ACH payments, please contact Thomas Johnsen, Accounting Specialist1, for the Florida
Municipal Insurance Trust, at (850) 701-3612 or tjohnsen@flcities.com.
NOTICE OF CHANGE IN POLICY TERMS
Florida Municipal Insurance Trust (FMIT)
2024-2025 Coverage Year
GENERAL LIABILITY/PUBLIC OFFICIALS LIABILITY COVERAGE ENDORSEMENTS
• FLORIDA MUNICIPAL INSURANCE TRUST GENERAL/PROFESSIONAL LIABILITY
COVERAGE AGREEMENT DECLARATIONS (FMIT GL DEC)
Revised language to clarify that the limits shown on the declaration page may include
and are subject to conditions, terms, and extensions provided by the FMIT SE GL and
FMIT SE SIR GL endorsements.
• FLORIDA MUNICIPAL INSURANCE TRUST COVERAGE AGREEMENT (FMIT CA)
Amended LIMIT OF LIABILITY section B. to further define what constitutes a single
claim as it relates to Sexual Abuse and Sexual Action.
Added subsection 3. to Defense and Settlement which proscribes that if two or more
limits apply to a single occurrence then only the largest limit shall apply and if two or
more deductibles apply to a single occurrence then only the largest applicable deductible
shall apply.
Clarified exclusion G. to specifically include Perfluoroalkyl and Polyfluoroalkyl or "PFAS"
substances including any related or associated substances.
• SPECIFIC EXCESS ENDORSEMENT - GENERAL LIABILITY (FMIT SE GL)
Clarified that this endorsement modifies coverage and when the excess limit is available.
AUTOMOBILE LIABILITY AND PHYSICAL DAMAGE COVERAGE
• FLORIDA MUNICIPAL INSURANCE TRUST AUTOMOBILE LIABILITY AND
PHYSICAL DAMAGE DECLARATIONS (FMIT AUTO DEC)
Revised language to clarify that the limits shown on the declaration page may include
and are subject to conditions, terms, and extensions provided by the FMIT SE AL and
FMIT SE SIR AL endorsements.
• SPECIFIC EXCESS ENDORSEMENT -AUTOMOBILE LIABILITY (FMIT SE AL)
Clarified that this endorsement modifies coverage and when the excess limit is available.
• AUTOMOBILE PHYSICAL DAMAGE COVERAGE FORM (FMIT APD)
Revised subsection 2. Newly Acquired Automobile to where no premium will be charged
for a newly acquired automobile in the fund year it is added if the total insured value is
less than $100,000.
Page 1 of 4
• PIP OPTION FORM (FMIT PIP)
Revised selections available and updated descriptive language.
PROPERTY COVERAGE
• FMIT PROPERTY COVERAGE AGREEMENT (FMIT PROP CA)
III. EXCLUSIONS
Revised section A. 2. to provide for a $1,000,000 per-occurrence limit.
Added exclusion B. which excludes payment by the Trust where payment would
expose the Trust to any sanction, prohibition, or restriction under United Nations
resolutions or the trade or economic sanctions, laws or regulations of the
European Union, United Kingdom or United States of America.
Added exclusion C. which excludes coverage for strike, riot, civil commotion
and/or malicious act when such loss relates to windstorm, hail, tornado,
hurricane, earthquake and cyclone, including ensuing collapse and water
damage.
PROPERTY COVERAGE AGREEMENT ENDORSEMENTS
• NAMED STORM COVERAGE AND PERCENTAGE DEDUCTIBLE ENDORSEMENT
(FMIT PROP 11NS-B)
Increased the per-occurrence IV. Property Damage Mitigation Coverage limit from
$500,000 to $750,000.
• NAMED STORM COVERAGE AND PERCENTAGE DEDUCTIBLE ENDORSEMENT
(FMIT PROP 11NS-C)
Increased the per-occurrence IV. Property Damage Mitigation Coverage limit from
$500,000 to $1,000,000.
• ORDINANCE OR LAW COVERAGE (FMIT PROP 12)
Clarified that Ordinance or Law coverage is limited by 25% over the actual loss to the
property or 25% of the Scheduled Value of the property, whichever is less; and that the
Blanket limit of coverage was not applicable to Ordinance or Law coverage.
• MISCELLANEOUS SCHEDULE OF INLAND MARINE (FMIT IM SCH)
Removed language relating to Optional Agreed Value coverage and applicable
deductible and inserted the removed language into the Inland Marine Floater (FMIT
PROP 02) form.
Page 2 of 4
• INLAND MARINE FLOATER (FMIT PROP 02)
Revised general language. Inserted Optional Agreed Value coverage and applicable
deductible language that was removed from MISCELLANEOUS SCHEDULE OF
INLAND MARINE (FMIT IM SCH).
Revised application of deductible so the Named Storm percentage deductible will apply
to covered Inland Marine property when Named Storm causes direct physical loss or
damage to covered property. When the property has a schedule or agreed value the
deductible will be calculated by applying the Named Storm Percentage Deductible
described therein, on a per-item basis, to the applicable agreed or scheduled value of
each damaged Covered Property item. If Covered Property is not scheduled, the Named
Storm Percentage Deductible shall be applied on a per-item basis to the replacement
cost value of the unscheduled Covered Property.
Made reference to Mobile Contractor's Equipment consistent throughout endorsement.
• EQUIPMENT BREAKDOWN COVERAGE SCHEDULE COMMERCIAL PACKAGE
POLICY (FMIT EBC)
Added new coverage areas: Future Loss Avoidance, Green, Mobile Robots, Mold, Off
Premises Equipment Breakdown, Public Relations, Resultant Damage to Animals.
Eliminated coverage area for "Fungus," Wet Rot, Dry Rot and bacteria which is now
included in Mold.
• EQUIPMENT BREAKDOWN COVERAGE SCHEDULE COMMERCIAL PACKAGE
POLICY (FMIT EBX)
Added new coverage areas: Future Loss Avoidance, Green, Mobile Robots, Mold, Off
Premises Equipment Breakdown, Public Relations, Resultant Damage to Animals.
Eliminated coverage area for "Fungus," Wet Rot, Dry Rot and bacteria which is now
included in Mold.
• EQUIPMENT BREAKDOWN COVERAGE (FMIT EBC/EBX)
Added new coverage areas: Future Loss Avoidance, Green, Mobile Robots, Mold, Off
Premises Equipment Breakdown, Public Relations, Resultant Damage to Animals.
Eliminated coverage area for "Fungus," Wet Rot, Dry Rot and bacteria which is now
included in Mold.
Added or broadened various coverages including but not limited to Electronic Circuitry
Impairment, Future Loss Avoidance, Off Premises Equipment Breakdown, Public
Relations, Resultant Damage to Animals, Resultant Loss from a Cyber Event, Service
Interruption and Spoilage.
Clarified application of coverage for Hazardous Substances by stating it does not apply
to certain clean up or disposal.
Page 3 of 4
Amended various definitions and coverage descriptions within the endorsement without
altering intent of coverage.
Added exclusions applicable to Catalyst/Molecular Sieve and Artifacts, Fossils, Relics or
any rare items of cultural, historical or scientific interest.
Added Not Covered Equipment to include Glass Lining; Equipment of others that you
modify, maintain, or test as a professional Service; and Die, Patterns, or Forms.
• WINDSTORM, HAIL, FLOOD AND STORM SURGE (FMIT PWD)
Added coinsurance language to the endorsement.
Page 4 of 4
In t e r i s k Corporation Risk Mgt.& Employee Benefits Consultants
1101 Red Maple Circle N.E., St. Petersburg, Florida 33703-6318 — telephone: 813-287-1040
www.interisk.net
August 23, 2024
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 2024/25 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 2023/24 policy period are as follows:
Coverage Premium
General Liability $143,391
C ber Liability $10,500
Public Officials Liability Incl. in General Liability
Automobile Liability $55,429
Automobile Physical Damage $18,306
Excess Workers'Compensation $249,812
Total $477,438
The FMIT has proposed to renew the program for an annual premium of$558,576. Following is a side-by-side
comparison of the 2023/24 premiums and those being proposed for the 2024/25 program. The premiums reflected for
the 2023/24 police year are those at policy inception and do not include any adjustments the County may have made
during the year.
Coverages 2023/24 2024/25 Incentive Net Increase/(Decrease) Percent of
Premium Premium Credit Premium Increase
General $143,391 $164,964
Liability $164,964 $21,573 15.04%
C ber Liability $10,500 $11,025 $11,025 $525 5.0%
Public Incl. in Incl. in Incl. in
Officials General General General N/A N/A
Liability Liability Liability Liability
Automobile $55,429 $96,606 $29,605 $67,001 $11,572 20.88%
Liability
Automobile
Physical $18,306 $34,973 $7,485 $27,488 $9,182 50.16%
Damage
Workers' $249,812 $288,098
Compensation $288,098 $38,286 15.33%
Total $477,438 $595,666 $37,090 $558,576 $81,138 17.00%
While there will be some minor changes to the terms and conditions of FMIT's 2023/24 policy, it has been confirmed that
none of the changes will materially impact the coverages being provided. It has been confirmed that the 2024/25
coverages will not include any COVID-19 or Communicable Disease exclusions or limitations.
This will result in the County's annual premium increase by $81,138 (17%). The majority of this increase is due to the
County increasing its payroll by over $9 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. In
addition, the State Legislature passed several bills that are projected to have a negative impact on the cost of Workers'
Compensation claims.
There are several reasons for the increase in the Automobile Liability and the Automobile Physical Damage premiums.
First, 13 new vehicles has been added to the policy. Second, Nationally, Vehicle Liability claims have escalated in recent
years. This has prompted the FMIT to increase their Automobile Liability rates by 15%.
It is believed that the proposed FMIT premium for the 2024/25 policy term is reasonable 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 10/1/24 to 10/1/25 as being proposed by the
FMIT.
Please do not hesitate to call if you have any questions or concerns.
Cordially,
INTERISK CORPORATION
Sidney G. Webber
CPCU, ARM