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ITEM: AUTHORIZATION TO RENEW THE CONTRACT TO PROVIDE GENERAL LIABILITY, PROPERTY, CASUALTY AND WORKERS’ COMPENSATION INSURANCE
REQUEST: Authorization to renew the contract to provide general liability, property, casualty and workers’ compensation insurance with the Florida Municipal Insurance Trust (Florida League of Cities) at an estimated net annual cost of $689,808.
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EXPLANATION: The existing Village insurance coverage for general liability, property, casualty and workers’ compensation insurance is contracted through the Florida League of Cities’ Florida Municipal Insurance Trust (FMIT). The agreement is set to expire on September 30, 2015. Staff is seeking authorization to renew the existing agreement through September 30, 2016.
The policy coverage includes: general liability, property, casualty, workers’ compensation and public official liability. Based on the current insured property, general liability and estimated payroll, FMIT’s proposal for FY 2016 is $754,341.
In addition, as part of their proposal, FMIT included a return on premium credit in the amount of $64,533 which would be available to the Village in the event the contract is renewed with FMIT. The total annual cost provided by FMIT, while keeping the same deductible levels and including any return on premium credits is $689,808 or $13,149 less than the Village’s FY 2015 premium.
In order to ensure the most competitive pricing, the Village’s agent of record, The Gehring Group, solicited quotes from other providers. The Preferred Governmental Insurance Trust (PGIT) provided quote of $673,661 or approximately $16,000 less annually, than the pricing provided by FMIT, while Public Risk Management of Florida (PRM) elected not to provide a quote.
The Gehring Group reviewed proposals received from both FMIT and PGIT, and provided a comparison summary (attached) which indicates benefits between particular coverage provisions from each provider. Based on their review, and the cost associated with transitioning to a new carrier, staff recommends renewing the existing contract with FMIT at an annual cost of $689,808 or approximately $13,000 less than the Village’s FY 2015 premium.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: Funds are budgeted in the proposed FY 2016 Risk Management budget.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Authorization to renew the contract to provide general liability, property, casualty and workers’ compensation insurance with the Florida Municipal Insurance Trust (Florida League of Cities) at an estimated net annual cost of $689,808