Key Largo Wastewater Treatment District Board of Commissioners Meeting Agenda item Summary

Transcription

1 Key Largo Wastewater Treatment District Board of Commissioners Meeting Agenda item Summary Meeting Date; September 26, 2017 Agenda Item Type: Information / Presentation Agenda Item Scope: Review / Discussion Agenda Item Number: Recommended Action: G-2 Department: Finance Sponsor: Peter Rosasco \ Subject: Pf2018 Proposed Insurance Renewal Summary of Discussion: The Fiscal Year 2018 proposed insurance renewal with T.R. Jones / Brown & Brown Insurance will be presented. Reviewed / Approved Operations: Administration: Finance: District Counsel: District Clerk: Engineering: $ 302, Financial Impact Funding Source: Rate Revenue Budgeted: Yes Attachments FY2018 Insurance Renewal Memo FY2018 Proposal of Insurance Approved By: General Manager Date

2 Key Largo WastewaterTreatment District Overseas Highway, Key Largo, FL Post Office Box 491, Key Largo, FL33037 Phone (305) Memo To: From: KLWTD Commissioners Connie Fazio, Finance Manager Date: Septembers, 2017 Re: FY18 Insurance Renewal Dear Commissioners, Brown and Brown of Homestead, our current insurance agency, has prepared the 10/1/2017 to 10/1/2018 Insurance renewal portfolio. An extensive review of the District's property program was performed in which all aspects of our insurance program were analyzed. We would like to thank Commissioner Sue Heim, Genera! Manager Peter Rosasco and the District's Engineer Ed Castle for their assistance and involvement in this renewal. We are pleased to present a renewal that represents an overall bottom line savings of nearly $85,000 over the expiring 2016 policy term. This reduction was achieved through a detailed analysis of our probable maximum loss levels on property as well as an analysis of various general liabilitydeductible levels. The renewal proposes: 1. Renewal of the PGIT General Liability, Auto Liability, Public Officials, Employment Practices Liability with a $10,000 deductible for a combined annual premium of $73,200 which represents an increase of $5,148 due to decreasing the general liability deductible to $10,000 from $25, All Risk Property and Inland Marine coverage with Axis Ins. Co. with a named storm sub-limit of $3,500,000 on a total insured value of $23,584,061. The sub-limited Named Storm limit is recommended as a result of an actuarial study performed by the insurance carrier that identified the District's probable maximum named storm loss to be $2,600,000 prior to application of any deductibles. The combined annual premium for Property and Inland Marine with Axis Ins. Co. is $110,489 as compared to expiring Property & Inland Marine with PGIT at $195,369. This represents a savingsof $84,880 over the expiring10/1/2016 term. 3. Renewal of the Workers' Compensation coverage with PGIT at an annual premium of $30,138 compared to $34,691. The decrease is the result of the District's experience modification reduction from.96 to.79, a payroll decrease and an NCCI (National Council on Compensation) 15% rate increase. This represents a savings over the expiring policy of $4, Crime Coverage as quoted with Travelers Insurance Company at an annual premium of $1,131 which represents a $10 increase over the expiring policy. 5. Boiler & MachineryCoverage with Travelers Insurance Company at an annual premium of $8,288 which represents an increase of $202 over the expiring policy. 6. Agency Consulting Fee Agreement renewal with Brown and Brown of Homestead which represents a flat fee annual renewal of $27,500.

3 rown > & jrown INSURANCE Commercial Insurance Proposal Brown & Brown of Homestead T.R. Jones & Company Proposal of Insurance Prepared for Key Largo Wastewater Treatment District Program Term: 10/01/ /01/2018 rown i ^ irown INSURANCE Presented by Thomas R Jones Jr. Kathy Nicotra S/14/17 Revised 8/30/17 v2 Bro\wn & Brown of FL- Homestead Division/ T.R. Jones & Co N. Krome Avenue Homestead, FL Phone Fax This presentation is designed to give you an overview of the insurance coverages we are offering for your company. Itis meantonlyas a general understanding of yourinsurance needs and shouldnot be construed as a legalinterpretation of the insurance policies that will be written foryou. Please referto yourspecific Insurance contracts for details on coverages, conditions and exclusions.

4 Introduction 3 Your Service Team 3 Marketing Summary 4 Premium Summary-REVISED 8/29/17 5 Terms, Conditions. & Recommendations 9 First Named Insured 11 PGIT-Package 12 PGIT-General Liability 13 PGIT - Public Official and EPL Liability 14 PGIT - Business Auto 16 PGIT - Workers Compensation 21 Property/Inland Marine/EDP 27 Boiler&Machinery 32 Crime 35 Excess Wind - Optional quote 38 Compensation Disclosure 43 Important Information 44 A.M. Best Rating of Proposed Carriers 45 Common Policy Exclusions 52 Common Definitions 53 Key Largo Waslewater Treabnent District Page 2 of 63 This proposal is provided as an overview of your policy. You must refer to the provisions found in your policy for the details of your coverage, terms', conditions and exclusions that apply.

5 Introduction Your business represents a considerable investment of time, effort and money. It warrants the service of a company that can provide a comprehensive analysis of all your insurance needs, offer insurance programs that are competitively priced and extend full protection to meet your specific needs. You need an Insurance Agency that is large enough to market your account to more than one leading insurance carrier, yet focused on providing professional, personalized service. Our agency. Brown & Brown of FL- Homestead Divislon/T.R.Jones & Co., is that caliber of an agency. We provide the kind of quality attention and protection you and your companydeserve. Representing more than 15 major carriers, specializing in every type of insurance coverage, we are able, and honored, to assume the responsibility of meeting your Insurance needs. Our recommendations are based on a careful analysis of the risks unique to you and your company. To this end, we have prepared a sound, competitively priced. Insurance proposal for your review. We appreciate the opportunity to evaluate you and your company and provide this proposal to cover your insurance and asset management needs. Your Service Team PROPERTY & Direct Phone Address CASUALTY Account Executive Thomas R Jones Jr. (305) tjones@bbinsfl.com Account Executive Kathy Nicotra (305) knicotra@bbinsfl.com Account Manager Cheryl Rust (305) crust@bbinsfl.com Asst. Account Manager Claims Representative Meg Gee (305) mgee@bbinsfl.com Jennifer Knowles (305) jknowles@bbinsfl.com Key Largo Wastewater Treatment District Page 3 of 63 This proposal is provided as an overviewof your policy. You must refer to the provisions found in your policy for the

6 Marketing Summary Carrier Preferred Governmental Insurance Trust-PKG & WC Traveiers-B&M and Crime AxisSurplus Ins Co - Property/lM/ OP Liberty Surplus Ins Co - XS Wind Marketing Results & Notes Quoted Proposed Quoted - Proposed Quoted - Proposed Quoted Proposed Key Largo Waslewater Treatment Districl Page 4 of 63 This proposal is provided as an overview of your policy. You must refer to the provisions found in your policy for the

7 PolicyTerm: 10/01/ /01/2018 Description Expiring Renewal Option 1: Renewal Option 2: Premium All lines w/pglt GL Deductible $25,000 except B&M- Travelers Property/IM/EDP/Crime w/pgltail Risk with Full Named Storm Limit GL/POL/EPLI/Auto w/pgit-gl Deductible $10,000 Property/IM/EDP w/axis All Risk with $3.SM Named Storm Sub Limit and REVISED/INCREASED TIV GL/POL/EPLl/Auto w/ PGIT-GL Ded $10,000 B&M-Travelers B&M & Crime-Travelers Property; All Risk including Named Storm $22,552,191 TIV.846 Rate $22,552,191 TIV Full Named Storm Limit.68 Rate $23,584,061 TIV w/ $3,500,000 Named Storm Sub limit Premium Fees Total $190, $0.00 $190, $151, $0.00 $151, Rate $110, Inspection fee $ $110, XS Named Storm Premium Fees Included Included See Page 6 for Higher Named Storm Limits Total Inland Marine $4, $4, Included above SUB TOTAL PROPERTY & IM ONLY: $195, $156, $110, General Liability-PGIT $29, $37, $37, Public Officials & Employment Practices Liability - PGIT $26, $24, $24, Business Auto - PGIT $12, $10, $10, SUBTOTAL; PGIT CASUALTY ONLY: $68, $72, $72, Workers' Compensation-PGIT $34, $30, $30, Crime $1, $1, $1, Boiler & Machinery $8, $8, $8, Agency Fee $27, $27, $27, Grand Total Renewing 10/01/2017 $334, $296, $250, Key Largo WastewaterTreatment District Page 5 of 63 This proposal Is provided as an overview of your policy. You must refer to the provisions found in your policy for the

8 OPTIONS: PGIT Casualty with General LiabilityDeductible at $25,000 vs $10,000 = $28,857 (or $8,799 less than the $10,000 deductible shown in the revised premium summary) Axis premium as illustrated on the premium summary page- adding IM/EDP resulted in an additional premium of $6,000. Axis premium as illustrated adding an additional $1 mil Named Storm coverage resulted in an additional premium of $14,000. All Risk Property adjusting the total insured values and including Inland Marine with Named Storm at Sub-limts from $2.5M to $5 M & Optional Quote with Axis adding an additional $1M Named Storm Original Quote 8/14/17 with Adjusted Values & Including Inland Marine & EDP Revised Quote 8/25/17 with Adjusted Values & Including Inland Marine & EDP AXIS All Risk Coverage including Named Storm at $2.5M Sub-Limit TIV: $23,584,061 Premium $96, LIBERTY Excess Named Storm at $2.5MXS of$2.5maxis Premium $22, TOTAL PREMIUM FOR$23,584,061 ALL RISK INCLUDING $5M NAMEDSTORM SUB-LIMIT AND INLAND MARINE $119, AXIS All Risk Coverage including Named Storm at $3.5M Sub-Limit TIV:$23,584,061 Premium $110, Not Pursuing Additional Named Storm limit TOTAL PREMIUM FOR $23,584,061 ALL RISK INCLUDING $3.5M NAMEDSTORM SUB-LIMIT AND INLAND MARINE $110, Business Income and Extra Expense not included on the Axis quote CRIME: 3 year term payable In annual installments Key Largo WastewaterTreatment District Page 6 of 63 This proposal is provided as an overview of your policy. You must refer to the provisions found In your policy for the

9 OTHER POLICIES RENEWING AT VARIOUS DATES: EXPIRING RENEWAL Flood: Admin Control Building 6/11/17 to 6/11/18 $1, $ Flood: Generator BIdq 6/11/17 to 6/11/18 Flood: Vac Station 1 5/16/16 to 5/16/17 Flood: Vac Station J/K 7/15/17-7/15/18 Flood: Mechanical BIdg 11/8/16 to 11/8/17 Flood: Vac Station E 11/8/16 to 11/8/17 Flood: Vac Station D 11/8/16 to 11/8/17 Flood: Vac Station A 11/8/16 to 11/8/17 $3, $2, $1, $1, $1, $ $2, $2, $2, $2, $3, $3, $3, $3, Flood: Vac Station G 01/09/17 to 01/09/18 Flood: New Admin BIdg 03/08/17 to 03/08/18 Storage Tank Pollution Liability 3/19/17 to 3/19/18 $3, $3, $2, $2, $2, $1, Site Pollution Liability 3/2/17 to 3/2/20 (Three yr term paid 2017) $32, $28, ERISA Bond: $20,000 Limit 12/1/14 to 12/1/17 $ $ TOTAL: $59, $52, Key Largo WasfewaterTreatmenl District Page 7 of 63 This proposal is provided as an overview of your policy. You must refer to the provisions found in your policy for the

10 Payment Terms Premium is due on effective date. Premium can be paid as noted below Direct Billed from carrier Boiler & Machinery - Travelers Property Casualty Company Workers Compensation - Preferred Governmental Insurance Trust Agency Billed policies can be paid in full or financing available Package - Preferred Governmental Insurance Trust-payment option below Property, Crime and X5 Wind - Financing available Pay Term: PACKAGE - 50% Down, 25% due at 75 days and 25% due at 1S6 days. First payment of $36,455 due 10/01/2017 Second payment of 18, is due 12/15/2017 Third payment of $18, is due 03/16/2018 Pay Term: WORKERS' COMPENSATION - Quarterly First payment of $7, is due 10/01/ Quarterly Installments of $7, are due beginning 01/01/2018 Key Largo Wastewater Treatment District Page 8 of 63 This proposal is provided as an overview of your policy. You must refer to the provisions found in your policy for the

11 Terms, Conditions, & Recommendations POINTS FOR DISCUSSION TERRORISM - The Terrorism Risk Insurance Program Reauthorization Act of Under the provisions of this act the government will share the risk of loss for certain future terrorism events with insurers. It provides licensed, admitted carriers with a substantial, federal reinsurance backstop for internationally instigated terrorism acts that are certified by the USSecretary of the Treasury as covered events (known as "certified" losses). The act responds to events that take place within the US, its protectorates, territories, and possessions. Participating insurers are required to notify customers of their cost of participation in the federal program. Your participation may be optional, as some carriers and/or coverage lines automatically include or exclude coverage therefore you may have the ability to accept or reject the offer. Due to rapidly changingmarket conditions as respects mold and terrorism your insurance program may be subject to additional limitations, exclusions, conditions, and sublimits by line of coverage. Carefully review your policy contract for such restrictions and limitations NOTABLE CHANGES FROM EXISTING PROGRAM 1. Workers' Comp Changes: a. Experience Mod decreased from.96 to.79; reduction by approximately 17 points. b. NCC! rates increased by 15%. c. Payroll decreased by 13% 2. PGIT Property - due to coinsurance issues, PGIT is not willing to decrease values as proposed by the district. 4. PGIT Property - All other peril deductible of $25,000 is the min & max deductible availableas this is what the Trust has negotiated with their reinsurers. 5. General Liability ratable payroll is $2,012,640 vs expiringof $2,219, EPLl ft of FTEE's is 37 vs 39 expiring and 5 PTvs 2 PT expiring 7. Auto Physical Damage limit has increased from $361,921 to $416, Property TIV loweredfrom $22,552,191 to $22,550,000 (decrease of $2,191)-lnland Marine and EDP values of $1,034,061 added to Property for a final TIV of $23,584, Axis Named Storm Sublimit yr Named Storm Probable Maximum Loss 10. Business income removed from the Boiler and Machinery QUOTES ARE SUBJEaTO THE FOLLOWING Workers' Compensation Quote subject to review and acceptance by Preferred Board of Trustees. Thecoverage agreement premiumshall be pro-rated as the first day of coveragefrom the minimum policy premium. Down payment is due at inception. TheTrust requires that the Member maintainsvalid and current certificatesof workers' compensation insurance on all work performed by persons other than its employees. IfNCCI re-promulgatesa mod, we will honor the mod as promulgated. Ifthe mod changes during the fund year, we reserve the right to apply a correct mod back to the inception date of the Coverage Agreement. Payrolls are subject to final audit. Deletion of any coverage presented. Package and/or Workers' Compensation, will result in Re-Pricing of account. KeyLargoWastewaterTreatment District Page 9 of 63 This proposal Is provided as an overview of your policy. You must refer to the provisions found In your policy for the

12 Quote is subject to receipt of the following information by 11/1/2017: 1. Signed Preferred WC Application. 2. Signed Drug Free Application. 3. Signed Safety Program Application. Package Renewal quote subject to review and acceptance by Preferred Board of Trustees. The coverage agreement shall be 25% minimum earned as of the first day of the "Coverage Period". Total premium is late if not paid in full within 30 days of inception, unless otherwise stated. Deletion of any coverage presented. Package and/or Workers' Compensation, will result In re-pricing of account. Coverage is not bound until confirmation is received from a licensed representative of Public RiskUnden«riters. Quote is subject to receipt of the following information by 11/1/2017: 1. Signed first page of the Preferred Application (Florida Fraud Statement). 2. Initialed and signed Preferred POL/EPLI Application. 3. Signed UM form. 4. Signed Signature page. Boiler and Machinery Subject to confirmation of details business income -let the underwriter know that you do not believe this is a risk. Verification if there is inventory values that would be separate from contents values. Explained that you do not hold any inventory for sale. Property/Inland Marine/EDP with Axis Signed Property Application Signed Non admitted carrier acknowledgement Key Largo WastewaterTreatment District Page 10of63 This proposal is provided as an overview of your policy. You must refer to the provisions found in your policy for the