_Add-on a)THE CITY OF PLEASANT LIVING
TO:
FROM:
DATE:
SUBJECT:
BACKGROUND:
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER-OFFICE MEMORANDUM
The Honorable Mayor & Members of the City Commission
Steven Alexander, City Manager
September 15, 2015 Agenda Item No.: Q )
WORKER'S COMPENSATION, PROPERTY, GENERAL LIABILITY, AUTOMOBILE, PUBLIC
OFFICIALS AND EMPLOYMENT PRACTICES INSURANCE
The City timely solicited and received proposals for the City's Workers'
Compensation, Property, General Liability, Automobile, Public Officials and
Employment Practices Insurance coverage for FY 2015-2016 from carriers
currently writing municipal businesses in South Florida.
The following table summarizes the responses received for Workers'
Compensation, Property, General Liability, Automobile coverage:
FMIT INSURANCE DESCRIPTION
Property Coverage
Inland' Marine
Equipment Breakdown Coverage
Crime and Bond Coverage
General Liability Coverage
Police Professional Liability Coverage
Automobile Coverage
FMIT Property. Auto and General Liability Total
FMIT Insurance Description
Workers Compensation
FMIT Total Premium
FMIT
$142,150
Included
Included
Included
$59,575
$156,330
$93.098
$451.153
$199,579
$650,732
THE CITY OF PLEASANT UVING
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER-OFFICE MEMORANDUM
PGIT INSURANCE DESCRIPTION
Property Coverage
Inland Marine
Equipment Breakdown Coverage
Crime and Bond Coverage
General Liability Coverage
Police Professional Liability Coverage
Automobile Coverage
PGIT Prop, Auto and General Liabilitv Total
PGIT Insurance Description
Workers Compensation
PGIT Total Premium
PGIT
$120,049
$836
Included
$750
$88,993
$66,022
$123,238
$399,888
Declined
to quote
$399,888
PUBLIC OFFICIALS & EMPLOYMENT PRACTICES LIABILITY COVERAGE
In addition to the package quotations summarized above, the City received an
independent quote for its Public Officials & Employment Practices Liability
coverage. Both FMIT and PGIT declined to quote this line of coverage.
ACE American Insurance Description
Total Premium
Limit of Liability $1,000,000
Deductible Per Claim:
Public Officials/Public Entity Liability -$100,000
Employment Practices Liability -$150,000
Zoning Claims -$250,000
Workers' Compensation Coverage
$50,887
The City Manager recommends that the City renew its Workers' Compensation
policy with FMIT for a total premium of $199,579. FMIT offers the most
competitive rates for Workers' Compensation Insurance. The City continues to
receive the company's preferred rating because of the continuing coverage,
including a 5% credit for its Drug Free Work Place policy and a 2% credit for its
newly created Safety Policy. This year's renewal represents a decrease of
approximately 7% over last year's premium.
SoutOOiami
THE CITY OF PLEASANT LIVING
AMOUNT:
EXPENSE ACCOUNTS:
ATTACHMENTS:
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER-OFFICE MEMORANDUM
The City Manager recommends that the City renew its policy with PGIT for its
Property, General liability and Automobile Insurance coverage for a total
premium of $399,888. This represents an increase of approximately 3.8% over
last year's premium. This increase is largely attributable to the addition of
several new vehicles to the City's inventory. -As set forth above, the PGIT
proposal contains the most favorable rates for these lines of coverage and
offers a two year rate guarantee.
The City Manager further recommends that the City renew its policy with ACE
American Insurance Company for the Public Officials and Employment Practices
liability policy for a premium of $50,887.
The breakdown of the total premium costs for all lines of insurance is set forth
below:
Actual Proposed
FY 2015 FY 2016
FMIT WORKERS' COMPENSATION $214,533 $199,579
PGIT GENERAL liABILITY, PROPERTY & AUTOMOBILE $385,086 $399,888
ACE PUBLIC OFFICIALS AND EMPLOYMENT PRACTICES $49,136 $50,887
TOTAL PREMIUM $648,755 $650,354
Auto Expense (Various Accounts), currently budgeted amount $96,375
Workers Compensation (Various Accounts), currently budgeted $208,955
General liability, Property, Public Officials -001-1330-513-4510, currently
budgeted $519, 723
Proposed Resolutions
Proposal Package from FMIT
Proposal Package from Brown & Brown
1 RESOLUTION NO. ____ _
2 A Resolution authorizing the City Manager to execute the renewed
3 policy with the Florida League of Cities, through the Florida
4 Municipal Insurance Trust (FMIT) for Workers' Compensation
5 Insurance.
6 WHEREAS, the City has received insurance quotes for Workers' Compensation
7 Coverage.
8 WHEREAS The City received a renewal quote from FMIT for the continuation of the
9 existing coverage, but received no other proposals for the necessary coverage;
10 WHEREAS, the City Administration recommends that the City continue coverage with
11 the Florida League of Cities through FMIT for Workers' Compensation Coverage for the
12 2015-2016 Fiscal Year based upon the current proposal;
13 NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
14 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA THAT:
15 Section I. The City Commission hereby authorizes the City Manager to execute
16 the renewal insurance policy for Workers' Compensation with FMIT for the 2015-2016
17 Fiscal Year.
18
19 Section 2. This resolution shall take effect immediately upon adoption.
20
21 PASSED AND ADOPTED this __ day of ____ • 2015.
22
23
24 ATTEST: APPROVED:
25
26
27
28 CITY CLERK MAYOR
29
30
31 READ AND APPROVED AS TO FORM. COMMISSION VOTE:
32 LANGUAGE. LEGALITY AND
33 EXECUTION THEREOF: Mayor Stoddard:
34 Vice Mayor Harris:
35 Commissioner Welsh:
36 Commissioner Liebman:
37 CITY ATTORNEY Commissioner Edmond
38
Coverage
Department of Insurance and Financial Services
FLORIDA MUNICIPAL INSURANCE TRUST
RENEWAL QUOTE FOR 2015-2016
Deductible
$0
City of South Miami
FMIT 0563
Premium
Workers' Compensation
Experience Modification 0.94 10/1/15
Total Payroll
$7,670,896 $199,579
"Includes: Drug Free Credit: Yes
Safety Credit: Ves
Note: Coverage summaries provided herein are intended as an outline of coverage only and are
necessarily brief. In the event of loss, all terms, conditions, and exclusions of actual Agreement and/or
Policies will apply.
Department of Insurance
and Financial Services
PROPERTY COVERAGE
Real & Personal Property
Electronic Data Processing:
-Equipment:
-Software:
FLORIDA MUNICIPAL INSURANCE TRUST
Proposal for 2015-2016
City of South Miami
Limit
$23,108,606
-Equipment Breakdown:
Included in Contents
Included in Contents
Included in Contents
Coinsurance:
Valuation Basis:
Coverage Form:
Oeductihles:
80%
Replacement Cost
Special
$5,000 Per Occurrence -Real & Personal Property, Other Property
Named Storm Deductible is 5% of the scheduled Building, Personal Property, Other Property (including
property in the open) and Business Income. The percentages are calculated using the Schedule of Values
on file with FMIT. The Named Storm deductible is calculated separately and applied individually to each
Building, Personal Property, Other Property and Business Income per occurence.
Business Income waiting period is 72 hours.
Note: Values rated at 80% of Total Insured Values.
PROPERTY COVERAGE EXTENSIONS:
);> Excess Flood Coverage
o Flood Zones A & V deductible is excess of NFIP ($500,000 per building)
o Other Flood Zones -$100,000 deductible per occurrence
). Terrorism
). Newly Acquired or Constructed Property
};> Newly Acquired Business Personal Property
).>-Business Income
» Extra Expense
» Valuable Papers & Records
.> Signs -Not attached to Buildings
o Vehicular damage to signs
}> Accounts Receivable
» Police Dogs & Horses
o Death in line of duty
o Annual Maximum
»-Electronic Data Processing Equipment (Software)
l> Antiques & Objects of Art
o Per Item
o Annual Maximum
» orr Premises Power Failure
). Pollutant Clean Up & Removal
). Fungus Clean Up & Removal
» Personal Property Off Premises
)-Personal Property of Others
). Preservation of Property
» Service Interruption Coverage
}> Property In Transit
}1> Recertification of EquipmenUFire Extinguisher Recharge
}1> Debris Removal
}1> Building Ordinance Coverage, Including Demolition
}1> Property in the Open
}1> Leasehold interest
}1> Arson Reward
2
$4,500,000
$5,000,000
$2,000,000
$500,000
$500,000
$1,000,000
$500,000
$25,000
$10,000 Maximum
$500,000
$15,000
$30,000
$250,000
$15,000
$250,000
$100,000
$100,000
$25,000
$250,000
$50,000
$100,000
$100,000
$250,000
$2501Day
25% of Loss
25% of Loss
$25,000 Per Location/$100,OOO Aggregate
$100,000
$5,000
INLAND MARINE COVERAGE:
BLANKET INLAND MARINE EQUIPMENT -Items $15,000 or Less Limit:
Deductible: $500
Blanket Inland Marine coverage is defined as: Coverage for all unscheduled Inland Marine equipment, Emergency
Portable Equipment and Communications Equipment valued at $15,000 or less is subject to $500 deductible.
(Note: All Watercraft must be scheduled.)
Coverage Basis: Actual Cash Value
3
$1,000,000
EQUIPMENT BREAKDOWN COVERAGE
Subject to any applicable limits on the Property, Allied Lines and Crime Declarations, the Equipment
Breakdown Limit is the most we will pay for loss or damage arising from any "one accident."
These coverages apply to all locations covered on the policy, unless otherwise specified.
I. Coverages
Equipment Breakdown
Business Income
Extra Expense
Expediting Expense
Hazardous Substances
Spoilage
Data Restoration
"Fungus," Wet Rot, Dry Rot And Bacteria
Service Interruption'"
Water Damage
II. Deductibles
Direct Coverages
Indirect Coverages
III. Other Conditions
Limits
Subject to the Real and Personal Property Limit described
in proposal or $50,000,000, whichever is less.
Subject to the Business Income Limit described in proposal.
Subject to the Extra Expense Limit described in proposal.
$1,000,000
$500,000
$500,000
$500,000
$25,000
Subject to Business Income,
Extra Expense, and Spoilage Limits
Included in Property Coverage.
Subject to the Real and Personal Property deductible described
in proposal.
Subject to the Time Element deductible described in proposal.
"'Unless the interruption exceeds 24 hours, we will not pay for any loss under Service Interruption.
"Covered equipment" does not include "electrical generating equipment"; however, this exclusion does not apply
to emergency generators.
4
GENERAL LIABILITY COVERAGE
Comprehensive General Liability
Limit Per Occurrence:
Annual Aggregate:
Deductible:
Police Professional Liability
Limit Per Occurrence:
Annual Aggregate:
Deductible:
Limits
$1,000,000
Unlimited
$0
Limits
$1,000,000
Unlimited
$0
Important Note: The deletion of any of the above coverages does not automatically reduce the premium. These premiums are
based on all of the above coverages. Any deletions of coverage will alter the experience modification factor originally used
and may result in a higher premium.
5
ADDITIONAL BENEFITS:
» Defense Costs paid in addition to policy limits
» Premises Operations
» Products/Completed Operations
» Contractual Liability (Designated Contracts Only)
» Owners & Contractors' Protective Liability
» Personal Injury Liability
» Host Liquor Liability
» Incidental Medical Malpractice Liability
» Watercraft Liability
» Fire Legal Liability -Maximum $500,000 in anyone Trust Year
» Broad Form Property Damage -Maximum $500,000 in anyone Trust Year
» Advertising Injury Liability
» Skate Facility Liability
» Employment Practices Liability
» Employee Benefits Program Administration Liability
~ Extra Contractual Legal Expense -$100,000 Aggregate Limit
o (EEOC, Florida Commission on Human Relations, Ethics)
» No-fault Sewer Backup Expense -$100,000 Aggregate Limit
» Crisis Intervention
» HR Helpline -Full Legal Support and Online Services
» Herbicide/Pesticide Spraying
o Limit is the General Liability limit or $1,000,000 aggregate per fund year, whichever is the lesser amount.
» Bert Harris AcUlnverse Condemnation -$300,000 Limit Per Occurrence/Aggregate. Limit includes Defense Costs.
o Deductible is $5,000 or the policy deductible, whichever is greater.
» Cyber Coverages including Privacy, Network Security and Data Breach -$250,000 Annual Aggregate. Claims Made.
» Cyber Risk Management Tools Web Site.
6
AUTOMOBILE COVERAGE
Comprehensive Automobile Liability
Deductible:
Personal Injury Protection
Deductible:
Automobile Physical Damage
Comprehensive Coverage
Limits
$1,000,000
$0
$10,000
$0
$1,000 Deductible
Collision Coverage $1,000 Deductible
Note: "Vehicles with $0 value on schedule provided were not included in the quote for APD,"
Coverage Includes:
» Hired & Non-Owned Liability
» Rental Reimbursement -scheduled vehicles
» Lease Differential-scheduled vehicles
» Limited Replacement Cost -owned private passenger vehicles, SUVs, Pickup Trucks
» Member's Personal Effects
Note: For Members that choose a deductible -Members are only responsible for the deductible if a
judgment or settlement occurs. Legal expenses are outside the deductible and paid solely by the Trust
for General· Liability and I or Automobile Liability.
7
CRIME & BOND COVERAGE
Bond Coverage:
Employee Theft -Per Loss
Faithful Performance -Per Loss
Finance Director
Deductible:
Deductible:
Deductible:
B
Limits
$100,000
$1,000
$100,000
$1,000
$100,000
$0
PREMIUM SUMMARY
Coverage Line Annual Premium
Real & Personal Property $142,150
Inland Marine INCLUDED
Equipment Breakdown Coverage INCLUDED
Crime & Bond Coverage INCLUDED
General Liability Coverage $59,575
Police Professional Liability $156,330
Automob·ile Coverage $93,098
Total Premium $451,154
Note: Coverage summaries provided herein are intended as an outline of coverage only and are
necessarily brief. In the event of loss, all terms, conditions, and exclusions of actual Agreement and/or
Policies will applv.
9
INTEREST FREE INSTALLMENT PLAN
First Installment Second Installment Third Installment Fourth Installment
25% minimum due 25% minimum due 25% minimum due 25% minimum due
October " 2015 January " 2016 April " 2016 July " 2016
Payment will be forwarded to the Florida League of Cities in Tallahassee
10