NEW CASTLE COUNTY Purchasing Section New Castle County Government Center 87 Read s Way New Castle, DE (302)

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1 QUESTIONS AND ANSWERS Below you will find a comprehensive list of the questions submitted by interested bidders to Ruth Kowalski, Chief Purchasing Agent, by the question closing date of January 27, In addition, you will find the answers to same as prepared by the Acting Risk Manager, Stephanie Noble Tickle, Esq. These questions and answers shall be published on the County s website as Addendum #3 for all interested parties to view. 1. Is the current servicing broker adequate? Are they being removed because they are not performing? RESPONSE: Yes, the current Broker is adequate. Pursuant to the terms of the contract with the current Broker, the contract is expiring. 2. Which policy outlined in the schedule policies includes the public officials, law enforcement and employment practices liability? RESPONSE: The General Liability Policy includes the public officials, law enforcement and employment practices liability. 3. How is the current broker compensated? Commission or fee? How much is the compensation? RESPONSE: The Broker is compensated for services through commissions received from insurance companies received as a result of coverage placed on behalf of the County. If the Broker is unable to secure better pricing and/or coverage terms than the renewal offer(s) from the County s present carriers, the Broker s compensation is an agreed-upon flat fee. In this situation, all commissions received by the Broker from all insurance companies are to be paid by the Broker to the County upon receipt of the commission by the Broker. 4. Can you provide five (5) years of loss history for all lines of coverage? RESPONSE: This information will not be provided to any potential bidders at this time. This may be provided to the successful bidder. 01/31/17 Bid #18PPA-001 Addendum #3 Page 1 of 15

2 5. What safety/loss control services are currently being provided by the broker, not the insurance carriers? RESPONSE: Pursuant to the terms of the contract with the current Broker, the Broker shall provide the following Risk Management Services: evaluation of current property listing including, but not limited to, reconstruction cost evaluations for each property, preparation of a portfolio for all owned properties and scheduled claims reviews as deemed necessary by the County. 6. Is the Workers Compensation included in this bid package? Neither the bid package nor the County website lists this as a purchased coverage. RESPONSE: The County is self-insured with respect to Workers Compensation. 7. What coverages are provided in the Package policy with Cincinnati? RESPONSE: Blanket Coverages Subject Amount Valuation Co-Ins. % Cause of Deductible Loss Building $154,322,864 R 90% SPC $100,000 Business Income $10,000,000-50% SPC $100,000 with Extra Expenses Personal Property $33,628,404 R 90% SPC $100,000 Additional Coverages Contractors Equipment 80% Co-Ins. $1,549,216 Deductible - $1,000 Earthquake $5,000,000 Deductible - $100,000 Flood $1,000,000 Deductible - $100,000 Ordinance or Law $2,500,000 Equipment Breakdown Up to building limit Building and Business Personal Property Included Coverage is Blanket, No Coinsurance, Special Causes of Loss Consequential loss (resultant loss to parts) $100,000 01/31/17 Bid #18PPA-001 Addendum #3 Page 2 of 15

3 Debris removal of covered property from a 25% of loss within limit + $50,000 covered loss Emergency removal (preservation of property) Included (up to 365 days) Emergency removal expenses (up to 365 days) $5,000 Fire department service charge by contract or $25,000 agreement or required by ordinance Fire protection equipment recharge Expenses incurred Pollutant cleanup and removal from land or $50,000 (per coverage term) water at each insured premises Voluntary parting through fraud or deceit $5,000 Brands/label expense $50,000 Expediting expenses $50,000 Foundations, underground pipes Covered building property Fungi, wet rot, dry rot and bacteria $15,000 (per coverage term) Inventory, appraisal, loss statement expenses $50,000 Newly acquired buildings if scheduled $2,000,000 Newly acquired business personal property $1,000,000 (BPP) if scheduled Non-owned building theft damage BPP limit Personal effects $15,000 Rewards for reporting arson, V&MM, theft and $10,000 burglary Trailers $5,000 Trees, shrubs, plants and lawns $50,000 Underground property, retaining walls, paved $250,000 surfaces Utility services (excluding overhead lines) $25,000 Water backup from sewers & drains $25,000 Fences Included in blanket building limit Radio/TV towers and antennae Included in blanket building limit, if within 1,000 feet of bldg. Key and lock expense $1,000 Tenant glass $5,000 01/31/17 Bid #18PPA-001 Addendum #3 Page 3 of 15

4 Supplemental Marine Coverage Accounts receivable $250,000 Fine arts $100,000 Property away from covered locations Included in BPP limit Property one exhibition $50,000 Property in transit $50,000 Software storage $50,000 Valuable papers $100, Is there currently a TPA involved for any lines of coverage, the website indicates No, please confirm. RESPONSE: The County has a contract with Gallagher Bassett Services, Inc. for third party administration services of General and Auto claims. 9. Can you please provide a schedule of limits provided by each coverage? RESPONSE: See response to question no. 7 and the following: Public Entity Fiduciary Liability General Aggregate $15,000,000 Each Loss $15,000,000 HIPPA Sublimit of Liability $50,000 CAP Penalties/Fees $150,000 Deductibles $0 General Liability General Aggregate $2,000,000 Products/Completed Operations Aggregate $2,000,000 Each Occurrence $1,000,000 Personal & Advertising Injury Liability $1,000,000 Sewage Back-up $100,000 Abuse or Molestation $2,000,000 Abuse or Molestation Each Occurrence $1,000,000 Self-insured retention $500,000 01/31/17 Bid #18PPA-001 Addendum #3 Page 4 of 15

5 Employee Benefits Liability General Aggregate $3,000,000 Products/Completed Operations Aggregate $1,000,000 Self-Insured retention $500,000 Law Enforcement Liability General Aggregate $1,000,000 Each Wrongful Act $1,000,000 Self-Insured retention $500,000 Public Entity Management Liability General Aggregate $1,000,000 Each Wrongful Act $1,000,000 Self-Insured retention $500,000 Public Entity EPLI General Aggregate $1,000,000 Each Wrongful Act $1,000,000 Self-Insured retention $500,000 Commercial Auto Bodily Injury & Property Damage Liability $1,000,000 Hired/Borrowed Auto Liability $1,000,000 Non-owned Auto Liability $1,000,000 Self-Insured Retention $500,000 Umbrella General Aggregate $14,000,000 Products/Completed Operations $14,000,000 Each Occurrence $14,000,000 01/31/17 Bid #18PPA-001 Addendum #3 Page 5 of 15

6 Personal & Advertising Injury $14,000,000 Self-Insured Retention $10,000 Commercial Crime Employee Dishonesty $5,000,000 Forgery or Alteration Deductible - $50,000 Money & Securities (Inside) $250,000 Money & Securities (Outside) Deductible - $25,000 Computer and Funds Transfer Fraud Computer Program/Data Restoration Expense $100,000 Deductible - $25,000 Counterfeit Currency & Money Orders $1,000,000 Faithful Performance of Duty Deductible - $25, Can you provide the reasons for the business income coverage? Is this for loss of rents? Does the business income limit include extra expense? RESPONSE: The income coverage is for earnings and extra expense. The business income coverage does not include loss of rents. The limit is $10, Who is the incumbent broker, and how long has the broker served New Castle County? RESPONSE: The incumbent broker is Bramhall & Hitchens, Inc. Bramhall & Hitchens, Inc. has acted as the County s broker since July 1, May we receive a copy of current brokerage contract, including the current compensation details? RESPONSE: This documentation will not be provided to any potential bidders at this time. The County believes that the pertinent information from said documentation is included herein. 13. May we receive copies of the six insurance policies listed in the schedule of insurance? RESPONSE: This documentation will not be provided to any potential bidders at this time. The County believes that the pertinent information from said documentation is included herein. The policies may be provided to the successful bidder. 14. May we receive a current schedule of insurance that includes retentions, deductibles, and policy limits? 01/31/17 Bid #18PPA-001 Addendum #3 Page 6 of 15

7 RESPONSE: See the responses to question nos. 7 and Are there any carriers that you prefer not to work with? If so, please explain. RESPONSE: The County is not opposed to any carriers that meet the qualifications as specified in the RFP. 16. Have any policies been non-renewed in the past five years? If so, please explain. RESPONSE: The County has non-renewed its Excess Workers Compensation policy and Cyber Liability. 17. May we receive loss runs (preferably in Excel) for all lines of coverage for the last five (5) years? RESPONSE: This documentation will not be provided to any potential bidders at this time. This information may be provided to the successful bidder. 18. Are there any water reservoirs, dams, and/or water parks of any sorts? If so, please describe. RESPONSE: The County does not own or maintain any water reservoirs, dams, or water parks. However, it should be noted that there are ponds located in Glasgow Park and Carousel Park, which are County owned parks. 19. Is the County self-insured for law enforcement professional liability, or is the exposure insured? If so, please provide details. Does the County operate a detention facility or prison? If so, please describe the operations and facilities. RESPONSE: See the response to question no. 9. The County does not operate a detention facility or prison. 20. Please describe the risk control services/engineering that are currently being provided by Travelers and Cincinnati, including the number of loss control hours provided and the cost so that we may be able to best meet your expectations. RESPONSE: Neither entity is currently providing risk control services/engineering. 21. The excess workers compensation policy is not scheduled on the most recent version of Addendum #1. What carrier currently writes the excess WC, and how is the program structured? RESPONSE: The County does not have an excess Workers Compensation policy. 01/31/17 Bid #18PPA-001 Addendum #3 Page 7 of 15

8 22. How many claims, by line of coverage, does the county incur in a typical year? RESPONSE: This amount varies year-by-year. The following summarizes the claims received in fiscal year 2015: General: 36; Auto: 34; Property: 35; and Fiduciary: May we have a copy of the property certificate/evidence of coverage? RESPONSE: This documentation will not be provided to any potential bidders at this time. This documentation may be provided to the successful bidder. 24. There is a discrepancy of lines of coverage between the two addendum s listing the lines of insurance. As an example, the cyber liability policy is not included on the newest addendum. Could you please help us reconcile the discrepancies between the two? RESPONSE: The County does not have Cyber Liability. 25. On page 7, the RFP reads that the county has various limits and deductibles. May we have a certificate listing the limits for workers compensation, auto, general liability and umbrella? RESPONSE: See responses to question nos. 6, 7, 9 and When will the notification of the broker selection be announced? RESPONSE: Prior to July 1, May we have premium pricing per line of coverage, in order to develop a priced proposal? RESPONSE: Line of Business Premium Property $153,380 General $22,899 Employee Benefits $92 Law Enforcement $92,395 Public Entity Management $17,900 Public Entity Employment Practices $54,939 Commercial Auto $87,256 Umbrella $147,602 Crime $13,949 Fiduciary $71,054 01/31/17 Bid #18PPA-001 Addendum #3 Page 8 of 15

9 28. Is the current compensation methodology fee, commission, or both? RESPONSE: See response to question no On page 1 of the Bid Packet, there is a reference to Interested parties shall submit a priced proposal however this appears to be a Request for Qualifications Bid which does not include a price. How are we able to present a priced proposal when the information required to do so is not available in the Bid specifications? Is this a misprint or error in the Bid? RESPONSE: The County does consider this to be a priced proposal because the County is requesting each bidder to provide your compensation method. 30. Who is the current Risk Manager for New Castle County? Will he/she be continuing in that roll moving forward? RESPONSE: Stephanie Noble Tickle, Esq. is the Acting Risk Manager. It is unknown at this time how long Ms. Tickle will be performing in the capacity as Risk Manager. 31. Who will be making up the New Castle County Evaluation Committee for selecting the Insurance Broker? RESPONSE: An evaluation team has not been confirmed. 32. On page 3 of the Bid Packet, the fourth bullet item references a Property Schedule but no schedule exists? Can you furnish me with a copy or tell me how/where I might be able to secure a copy of the Property Schedule? RESPONSE: A property schedule has been made available as an addendum to the RFP. 33. As for the revised Schedule of Insurance, it seemed to be missing quite a few of the coverage s that should have been part of the schedule. My concerns are as follows: There was no listing of Workers Compensation on the revised Schedule of Insurance? Who is currently handling the Excess Workers Compensation coverage? What is New Castle County s Self-Insured Retention? Who is responsible for handling claims an outside Third Party Administrator (TPA) or is New Castle County now handling their own claims? 01/31/17 Bid #18PPA-001 Addendum #3 Page 9 of 15

10 RESPONSE: The County is self-insured with respect to Workers Compensation. The County does not currently use a TPA. The County handles all of its Workers Compensation claims in-house. 34. As for the revised Schedule of Insurance, it seemed to be missing quite a few of the coverage s that should have been part of the schedule. My concerns are as follows: The Auto is handled by a TPA. RESPONSE: Yes, the County utilizes the services of Gallagher Bassett Services, Inc. for auto and general claims. 35. As for the revised Schedule of Insurance, it seemed to be missing quite a few of the coverage s that should have been part of the schedule. My concerns are as follows: The policy with Cincinnati shows Package? Is this inclusive of multiple policies or is this simply the Property policy? RESPONSE: Inclusive. See response to question no As for the revised Schedule of Insurance, it seemed to be missing quite a few of the coverage s that should have been part of the schedule. My concerns are as follows: There is no listing for Public Officials Liability? RESPONSE: The Public Officials Liability is included within the General Liability. 37. As for the revised Schedule of Insurance, it seemed to be missing quite a few of the coverage s that should have been part of the schedule. My concerns are as follows: There is no listing for Police Professional Liability? RESPONSE: The Police Professional Liability is included within the General Liability. 38. As for the revised Schedule of Insurance, it seemed to be missing quite a few of the coverage s that should have been part of the schedule. My concerns are as follows: There is no listing for Employment Practices Liability? RESPONSE: The Employment Practices Liability is included within the General Liability. 39. As for the revised Schedule of Insurance, it seemed to be missing quite a few of the coverage s that should have been part of the schedule. My concerns are as follows: There is no listing for Cyber Liability? RESPONSE: The County does not currently have coverage for Cyber Liability. 01/31/17 Bid #18PPA-001 Addendum #3 Page 10 of 15

11 40. As for the revised Schedule of Insurance, it seemed to be missing quite a few of the coverage s that should have been part of the schedule. My concerns are as follows: There is no listing for Environmental Impairment Liability (Pollution)? RESPONSE: The County does not currently have coverage for Environmental Impairment Liability. 41. Can we get a copy of your current vehicle schedule? RESPONSE: The schedule of vehicles is attached hereto as Exhibit What are your current premiums/coverage s/limits per line? RESPONSE: See response to question nos. 7, 9 and Can you provide a sample contract agreement? RESPONSE: The County does not have a sample contract agreement. 44. Would we have the opportunity to speak with the Risk Manager next week prior our submission of the Response? RESPONSE: In an effort to remain as fair as possible to all potential bidders, between now and the selection of the successful bidder, there shall be no communications between any potential bidder and the County s Acting Risk Manager. It is the County s hope that it has provided enough information herein in order for each of the interested bidders to prepare and present its bid. 45. Would we have the opportunity to learn more about the internal claims persons role and more specifics about their administration of WC, GL and Auto losses? RESPONSE: In an effort to remain as fair as possible to all potential bidders, between now and the selection of the successful bidder, there shall be no communications between any potential bidder and the County s Risk Management department. It is the County s intention in providing this Q&A that it provides all of the necessary information for each of the interested bidders to prepare and present its bid. 01/31/17 Bid #18PPA-001 Addendum #3 Page 11 of 15

12 46. Is there an orals presentation process and approximate date so we may best communicate the differentiators of our firm and the proven solutions we will deliver to NCC? RESPONSE: Based on the criteria established pursuant to the New Castle County Code, an evaluation committee will be selected to read, screen, and rank in writing all proposals. The New Castle County Chief of Administrative Services may request a presentation from the highest ranked interested parties. It is the County s intent to complete initial rankings within thirty (30) days from the bid opening date. If initiated by the County, invitations for oral presentations with the highest ranked firms would be scheduled thereafter. 47. Would you please provide minimum of three (3) years (5 years preferred) loss runs per line of coverage? To please include: Total incurred values per claim, amount paid per claim, reserved amounts per claim available in the details; of large losses exceeding $50,000 or for all claims as provided by the carrier loss runs; Open and closed columns with dates; Loss runs in Excel format; We offer to request this information on your behalf should you not have currently valued loss data(with no commitment from NCC but to give you and us the optimal data available). RESPONSE: This documentation will not be provided to any potential bidders at this time. This information may be provided to the successful bidder. 48. Is a Third Party Administer (TPA) service vendor utilized? RESPONSE: See response to question no Who is the TPA? RESPONSE: See response to question no Would you provide the TPA contract for our review, comment and recommendations to NCC? RESPONSE: This documentation will not be provided to any potential bidders at this time. This documentation may be provided to the successful bidder. 51. Can you describe the role of the NCC WC and GL claims persons? RESPONSE: An employee in this class is responsible for the administration of the insurance programs of New Castle County, including both self-insured and externally-insured programs and workers compensation programs. Duties encompass several areas: insurance, tort liability, claims, training, safety, loss controls, workers compensation, medical, and health and welfare. 01/31/17 Bid #18PPA-001 Addendum #3 Page 12 of 15

13 52. Who are your internal claims persons? RESPONSE: See response to question no. 30. There are additional employees within the Risk Management department; however, the County will not be providing their names herein. 53. Do you have a return to work program? RESPONSE: The County has procedures in place for assisting the return of employees injured either in occupational accidents or non-occupational accidents. 54. What other programs are in place to close claims and mitigate expenses? RESPONSE: Bi-annual manual review utilizing MCO. 55. What has been your success in closing Workers Compensation and General Liability claims? RESPONSE: The County s Risk Management department works closely with its carriers, TPA and the County s Office of Law in an effort to successfully resolve all Workers Compensation and General Liability claims. 56. How many GL claims does NCC average annually? RESPONSE: The answer to this question varies annually. During the 2015 fiscal year, the County received 36 general liability claims. 57. Is the incumbent agent the only party to currently have loss information available during this RFP? RESPONSE: The Acting Risk Manager does not know the answer to this question. The Acting Risk Manager can state with certainty that she has not provided the loss information to any entities. 58. What is the premium range of coverages insured? RESPONSE: See responses to question nos. 7 and What is the average claim size in dollars of the self-insured WC program? RESPONSE: This information will not be provided as it is not pertinent to this bid process. 01/31/17 Bid #18PPA-001 Addendum #3 Page 13 of 15

14 60. Is there more criteria you would please provide to determine the price of our services? RESPONSE: It is the County s intention in providing this Q&A that it provides all of the necessary information for each of the interested bidders to prepare and present its bid. 61. Why was the WC and Cyber both removed from the schedule of insurance? RESPONSE: The Workers Compensation and Cyber Liability were removed by the prior administration. It is believed that the policies were removed due to costs and high retention values. 62. What are the limits of the umbrella program? RESPONSE: See response to question no Is NCC seeking only the best price or truly seeking to utilize the greater services available from a broker who can demonstrate thousands of dollars of savings to the total cost of risk for NCC? RESPONSE: The County is interested in retaining the services of a broker who can both obtain the best prices available for the requested policies as wells as provide services which would reduce the total cost of risk for the County. 64. May we speak with legal counsel? RESPONSE: In an effort to remain as fair as possible to all potential bidders, between now and the selection of the successful bidder, there shall be no communications between any potential bidder and the County s Office of Law. It is the County s intention in providing this Q&A that it provides all of the necessary information for each of the interested bidders to prepare and present its bid. 65. Is the 2016 annual renewal proposal available to understand the current negotiated terms of the risk management program? RESPONSE: This documentation will not be provided to any of the potential bidders. It is the County s intention in providing this Q&A that it provides all of the necessary information for each of the interested bidders to prepare and present its bid. 01/31/17 Bid #18PPA-001 Addendum #3 Page 14 of 15

15 66. Are policies or a summary of coverage terms available for analysis and benchmarking? RESPONSE: This documentation will not be provided to any of the potential bidders at this time. It is the County s intention in providing this Q&A that it provides all of the necessary information for each of the interested bidders to prepare and present its bid. 67. What have been the issues faced by the RM department, claims team, agent, and others over the past three years? RESPONSE: The increasing risk s costs. 68. What types of detailed financial analysis has been presented by the agent to identify the limits, retentions, coverage and premiums quoted in the marketplace to present to your CFO and Executive Team to confirm recommendations of the program in place? How were the results impactful to your savings? RESPONSE: The Acting Risk Manager is without sufficient information and knowledge to answer this question. 69. Would you describe the safety program in place by the agent and expectations of NCC, so the new appointment may best deliver the resources of their local and regional loss control professionals? RESPONSE: Pursuant to the terms of the contract with the current Broker, the Broker shall provide the following Risk Management Services: evaluation of current property listing including, but not limited to, reconstruction cost evaluations for each property, preparation of a portfolio for all owned properties and scheduled claims reviews as deemed necessary by the County. The bid opening has been postponed until Wednesday, February 15, 2017 at 2:00 P.M. All other terms and conditions remain the same. Michael Hojnicki Chief of Administrative Services 01/31/17 Bid #18PPA-001 Addendum #3 Page 15 of 15