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Home My WebLink About2000 09 25 Regular C Insurance Coverages . . . COMMISSION AGENDA ITEM C Consent Informational Public Hearing Regular X SEPTEMBER 25, 2000 Meeting ~ ({J) Mgr. I Dept. Authorization REQUEST: The General Services Department requests that the Commission consider proposals to provide property damage, automobile liability, general liability, and public officials liability coverages, and to authorize coverages through Risk Management Associates, Inc., brokers for Coregis and AIG. PURPOSE: The purpose of this agenda item is to advise the City Commission of the responses to the city's Request for Proposal for various insurance coverages, and to recommend award to Risk Management Associates, Inc. APPLICABLE LAW AND PUBLIC POLICY: City Charter, Administrative Code, and Purchasing Policies Administrative Code Purchasing Policies CONSIDERATIONS: In June, 2000, the Director of General Services was visited by Steve Jones and John Ligons of the Florida Municipal Insurance Trust (FLC), who informally advised that the city would be receiving a Notice of Non-Renewal on General Liability coverage for the fiscal year 2000/2001. (The formal notice was sent to the City on August 10, 2000.) - An RFP was compiled and distributed to the insurance markets for property damage, automobile liability, and general liability coverages. All three were included because such coverages are typically bid and purchased as a package. ,/ . September 25, 2000 City Commission Regular Agenda Item "C" Proposals were received from FMIT (FLC), the J. Rolfe Davis Agency, Hunt Insurance Group, and Risk Management Associates. - The proposal from J. Rolfe Davis is for property damage coverage only, and the pricing is non-competitive. - The proposal from the Hunt Insurance Group is for law enforcement liability only, and the pricing is non-competitive. - The Florida Municipal Insurance Trust (FLC) proposal includes all three coverages, but requires that the city establish a "loss fund" of $400,000, to be administered by FMIT to pay claims within the self-retention limit of $100,000. - The proposal from Risk Management Associates includes all three coverages, to be placed through Coregis, but breaks out public officials liability as a separate coverage, to be placed through AIG. - The attached bid tabulation shows that RMA's combined proposal for general liability and public officials liability requires total premiums that are $13,077 higher than FMIT, but afford enhanced coverage at an overall better cost for the following reasons: . Single occurrence and aggregate liability limits are greater than FMIT. The deductible for general liability claims (exclusive of public officials coverage) is lower than FMIT. RMA does not require the establishment of a "loss fund" as compared to .FMIT. Five additional general liability coverages are included which FMIT excludes. Under public officials liability, RMA provides coverage for non-monetary defense costs at a higher level than FMIT. Also under public officials liability, RMA provides $50,000 coverage for punitive damages, which FMIT does not. Regarding property damage coverage, the RMA clearly ranks as the most cost effective, with the greatest amount of protection. - Regarding automobile liability coverage, the RMA proposal is more cost effective for comparable liability coverages, and at the same physical damage deductible of $500. . . . . September 25, 2000 City Commission Regular Agenda Item "C" FUNDING: The following table compares premiums paid in 99/00 for all property and casualty coverages, to premiums we expect to pay if the RMA proposal is accepted. It also explains our cost exposure to paying claims within deductible levels. FMIT 99/00 FMIT Proposed RMA Proposed Proposal Increase Difference over 99/00 Premiums $113,721 $161,547 $146,140 (plus loss fund) $15,407 $32,419 Budgeted 99/00 Incurred 99/00 Tent. Budget 00/01 Claims/ Settlements within deductible* $70,000 $51,911 (thru 8/31/00) $72,500 · - Deductible/self-retention was $25,000 for all automobile and general liability claims in 99/00. In 00/01, under the RMA proposal, for public officials liability only, that amount rises to $100,000. STAFF RECOMMENDATION: Based on the pricing, terms, and coverages offered, staff recommends the City Commission select Risk Management Associates, Inc., to provide all property and casualty coverages through Coregis and AIG for FY 00/01. ATTACHMENTS: Proposal comparisons for General Liability, Public Officials Liability, and Law Enforcement Liability Proposal comparisons for Property Damage coverage Proposal comparisons for Automobile Liability coverage COMMISSION ACTION: City of Winter Springs Insurance RFP Comparison 8/30/00 . . General Liability FMIT 99-00 FMIT 00-01 BMA tl1ill.t Liability Limit $2,000,000 $1,000,000 $2,000,000 Not Applicable Aggregate None $1,000,000 $5,000,000 Not Applicable Deductible $25,000 $100,000 $25,000 Not Applicable Stop Loss $116,049 None None Not Applicable Loss Fund None $400,000 None Not Applicable Claims Expense Costs Included NOT Included Included Not Applicable Inverse Condemnation No No $1,000,000 Not Applicable Contractual Liability No No Yes Not Applicable Broad Form Property Damage No No Yes Not Applicable Failure to Supply Water No No $250,000 Not Applicable Chemical Spraying Liability No No $250,000 Not Applicable Law Enforcement Liability Included Included Included Not Applicable Employee Benefits Liability Included Included Included Not Applicable Medical Attendants Liability Included Included Included Not Applicable Public Official's Liability Included with General Liability Yes Yes NOT Included Not Applicable Liability Limit As Above As Above $1,000,000 Not Applicable Aggregate Limit As Above As Above $1,000,000 Not Applicable Separate Limit from GL No No Yes Not Applicable Deductible As Above As Above $100,000 Not Applicable Stop Loss As Above As Above None Not Applicable Loss Fund As Above As Above None Not Applicable Claims Expenses included Yes No Yes Not Applicable Deductible applicable to Defense Costs No Partially Yes Not Applicable Policy Form Occurrence Occurrence Claims Made Not Applicable Tail Coverage Not Applicable Not Applicable 12 mo. @ 50% premo Not Applicable Employment Practices Lia. Yes Yes Yes Not Applicable Wrongful Acts Yes Yes Yes Not Applicable Non-Monetary Defense costs $15,000 $15,000 $100,000 Not Applicable Punitive damages No No $50,000 Not Applicable Law Enforcement Liability Liability limit As Above As Above A'$ Above 2,200,000 Aggregate Limit As Above As Above As Above 2,300,000 Separate Policy from GL No No No Yes Deductible As Above As Above As Above 25,000 Stop Loss As Above As Above As Above 100,000 Moonlighting Coverage No No Yes Yes Punitive Damages No No No Where Allowed by Law Summary of Premium Premium Gen Liability $56,608 $75,000 $42,882 Not Applicable Premium Public Officials $0 $0 $44,195 Not Applicable Premium Law Enforcement $0 $0 $0 $32,394 Total Premium $56,608 $75,000 $87,077 $32,394 . Property FMIT 99-00 FMIT 00-01 RMA J. Rolfe Davis , , Deductible 1000 1000 1000 5000 Agreed amount yes yes yes yes Police Dogs 5,000 5,000 1,000 none Flood 500,000 xs of 500,000 500,000 xs of 500,000 none none Foundations no no yes no Impounded Property no no yes no Bldgs Under Cons no no 500,000 500,000 Emergency SerVice no no 250,000 no Equipment Pollution clean-up 10,000 10,000 50,000 25,000 Sewer Back-up no no 25,000 no Increased cost of no no 15%/500,000 250,000 Construction Demolition no no 15%/500,000 250,000 Trees/Shrubs no no 25,000 25,000 EDP Deductible 250 250 1000 1000 Inland Marine Deductible 250/1000 250/1000 1000 1000 Boiler & Machinery Limit na 1,000,000 14,775.997 na Deductible na 1000 1000 na Comprehensive Coverage na yes yes na Premium 27,741 43,743 17,759 35,982 . . . Auto Liability FMIT 99-00 FMIT 00-01 RMA Number of Vehicles 96 113 113 Liability Limit 2,000,000 2,000,000 2,000,000 Aggregate None None None Deductible 25,000 25,000 25,000 UM Limit 35,000 35,000 30,000 Personal Injury Protection 10,000 10,000 10,000 Physical damage deductible 500 500 500 Vehicles added at no No No Yes additional premium Stop Loss 116,049 None None Annual Premium 29,372 42,804 41,304 . . .