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Home My WebLink AboutItem P5 P5 BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE Mayor James K.Scholl,District 3 The Florida Keys Mayor Pro Tern Michelle Lincoln,District 2 Craig Cates,District 1 David Rice,District 4 Holly Merrill Raschein,District 5 Board of County Commissioners Meeting September 10, 2025 Agenda Item Number: P5 2023-4496 BULK ITEM: No DEPARTMENT: Risk Management TIME APPROXIMATE: STAFF CONTACT: Gaelan Jones AGENDA ITEM WORDING: Approval of proposal from Florida League of Cities to renew the 2025-2026 liability insurance and excess workers' compensation insurance program for an annual premium of$599,083 and authorization for the Risk Manager to sign all necessary documents required to bind coverage. 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$599,083. This will result in the County's annual premium increase of$40,507 (7.25%). The majority of this increase is due to the increase in the General liability premium. The County's Risk Consultant letter providing analysis and recommending this renewal is attached. PREVIOUS RELEVANT BOCC ACTION: BOCC approved proposal September 11, 2024. INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: FLOC Insurance proposal. 7420 STAFF RECOMMENDATION: Approval to accept insurance proposal from Florida League of Cities at a cost of$599,083 to be paid in quarterly installments for the period of October 1, 2025 to September 30, 2026, and approval for Risk Management to execute all necessary documents. 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Revised Exclusions A. to clarify that any claim, suit or liability arising from quasi- contracts or estoppel is excluded. Revised Exclusions K. to clarify it includes critical illness claims and statutory claims regarding entitlement to cancer benefits. GENERAL LIABILITY/PROFESSIONAL LIABILITY COVERAGE ENDORSEMENTS • FLORIDA MUNICIPAL INSURANCE TRUST LEGAL FEE REIMBURSEMENT (FMIT ECLE) Revised Exclusion DD. to expressly exclude coverage for foreclosure actions, quiet title actions, and other actions seeking equitable relief relating to real property. • SPECIFIC EXCESS ENDORSEMENT SELF-INSURED RETENTION MEMBERS — GENERAL LIABILITY (FMIT SE SIR GL) Added specific documents to Section IV. G. which the Designated Member must provide or cause to be provided when requested by the Trust. PROPERTY COVERAGE • FLORIDA MUNICIPAL INSURANCE TRUST PROPERTY, ALLIED LINES AND CRIME DECLARATIONS (FMIT PROP DEC) Revised Limit column to stated "Dedicated Limit." Named Storm Coverage and Percentage Deductible will now appear directly on FMIT PROP DEC. PROPERTY COVERAGE AGREEMENT ENDORSEMENTS Page 1 of 3 7425 • BUILDING AND PERSONAL PROPERTY COVERAGE FORM (CP 00 10 04 02) Removed Section G. 3. d. (2) language which requires an extension be granted prior to the expiration of the period. • FLOOD COVERAGE EXTENSION (FMIT FLOOD) Removed Shared Aggregate Flood Limit. • NAMED STORM COVERAGE AND PERCENTAGE DEDUCTIBLE ENDORSEMENT (FMIT PROP NS-A) Removed definitions of Inland County and Coastal County. Removed all references and application of deductible based on being an Inland County or Coastal County. Removed Section I. b. 4. requirement that an extension be granted prior to the expiration of the period. • NAMED STORM COVERAGE AND PERCENTAGE DEDUCTIBLE ENDORSEMENT (FMIT PROP NS-B) Removed definitions of Inland County and Coastal County. Removed all references and application of deductible based on being an Inland County or Coastal County. Removed Section I. b. 4. requirement that an extension be granted prior to the expiration of the period. • NAMED STORM COVERAGE AND PERCENTAGE DEDUCTIBLE ENDORSEMENT (FMIT PROP NS-C) Removed definitions of Inland County and Coastal County. Removed all references and application of deductible based on being an Inland County or Coastal County. Removed Section I. b. 4. requirement that an extension be granted prior to the expiration of the period. • HOUSING AUTHORITY WINDSTORM AND HAIL COVERAGE AND DEDUCTIBLE ENDORSEMENT (FMIT PROP 11H) Removed Section V. a. requirement that an extension be granted prior to the expiration of the period. Removed references to Inland or Coastal property locations. BREACH RESPONSE AND CYBER LIABILITY COVERAGE Page 2 of 3 7426 • BREACH RESPONSE AND CYBER LIABILITY COVERAGE (FMIT CYBER) Removed reference to Member referring to Designated Member in introductory paragraph. FMIT WORKERS' COMPENSATION COVERAGE • SPECIFIC EXCESS ENDORSEMENT WORKERS COMPENSATION INSURANCE ENDORSEMENT (FMIT WC SE) Added specific documents to Section VIII. (10) which the Designated Member must provide or cause to be provided when requested by the Trust. Revised language in Section X. to clarify that the Trust may, in its discretion, elect to assume control of subrogation pursuits. • EXPERIENCE RATING MODIFICATION FACTOR ENDORSEMENT WORKERS' COMPENSATION (FMIT WC EMF) Revised language to provide that the proper experience rating modification factor ("Mod Factor") for workers' compensation coverage may be applied in the event a different Mod Factor is later determined to be appropriate. Page 3of3 7427 Interisk August 25, 2025 Gaelan P. Jones Assistant County Attorney Monroe County Attorney's Office Risk Management and Public Records 1111 12th Street, Suite 408 Key West, FL 33040 Ms. Jacklyn Flatt Risk Administrator Monroe County 1111 121" 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 2025/26 insurance program submitted by the Florida League of Cities. The coverages included in the program are as follows: :1 General Liability :1 Cyber Liability :1 Public Officials Liability (the FMIT refers to this coverage as Professional Liability) :1 Automobile Liability :1 Automobile Physical Damage :1 Excess Workers'Compensation The premiums for the 2024/25 policy period are as follows: Coverage Premium General Liability $164,964 C ber Liability $11,025 Public Officials Liability Incl. in General Liability Automobile Liability $67,001 Automobile Physical Damage $27,488 Excess Workers'Compensation $288,098 Total $558,576 The FMIT has proposed to renew the program for an annual premium of$599,083. Following is a side-by-side comparison of the 2024/25 premiums and those being proposed for the 2025/26 program. The premiums reflected for 7428 the 2024/25 police year are those at policy inception and do not include any adjustments the County may have made during the year. Coverages 2024/25 2025/26 Incentive Net Increase/(Decrease) Percent of Premium Premium Credit Premium Increase General $164,964 $173,793 Liability $173,793 $8,829 5.3% C ber Liability $11,025 $11,576 $11,576 $551 5.9% Public Incl. in Incl. in Incl. in Officials General General General N/A N/A Liability Liability Liability Liability Automobile $67,001 $116,014 $35,526 $80,488 $13,487 2.0% Liability Automobile Physical $27,488 $47,471 $9,730.50 $37,740.50 $10,252.50 37.2% Damage Workers' $288,098 $295,485 Compensation $295,485 $7,387 2.6% Total $558,576 $644,339 1 $45,256.50 $599,083.50 $40,506.50 7.3% FMIT's rounded the $9,730.50 Incentive Credit down to $9,730.00 in calculating the Total Net Premium. While there will be some minor changes to the terms and conditions of FMIT's 2025/26 policy, it has been confirmed that none of the changes will materially impact the coverages being provided. It has been confirmed that the 2025/26 coverages will not include any COVID-19 or Communicable Disease exclustions or limitations. This will result in the County's annual premium increasing by approximatly$40,506 (7.3%). It is believed that the proposed FMIT premium for the 2025/26 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 10/1/25 to 10/1/26 as being proposed by the FMIT. Please do not hesitate to call if you have any questions or concerns. Cordially, INTERISK CORPORATION yZ2,11"-� Sidney G. Webber CPCU, ARM 7429