SUBJECT:
Title
Request Approval of Employer Insurance Renewal for FY 2022 (Budget Impact - Expenditure of $2,650,157 as proposed in the FY 21/22 budget)
Body
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INITIATOR: |
DEPARTMENT: |
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Amanda Tart, Executive Director, Administrative Services |
Human Resources |
DESCRIPTION/BACKGROUND:
The County’s Comprehensive Employer Insurance Agent, Public Risk Insurance Agency (PRIA), has generated premium renewal estimates for the County’s Property/Casualty and miscellaneous employer insurance coverage as shown on the attached spreadsheet to be effective October 1, 2021. PRIA shops the market annually to obtain the most competitive coverage and rates for Marion County.
Property rates in the Florida Public Sector have increased steadily with average increases of 20% in 2020 and 13% in 2021. Marion County’s premium is increasing $134,654 or 8.5% which is the first increase in three (3) years. This year’s insured values for buildings and contents increased by approximately $5 million which included the addition of Marion County Utilities at $2 million and the Medical Examiner’s office at $2.9 million.
General Liability, Public Officials Liability, Crime and Excess Workers’ Compensation premiums increased a total of approximately $73,000 due to an increase in number of employees and total payroll. However, our total Workers’ Compensation actuarial claims funding is down approximately $1.7 million which has provided an overall decrease to the budget.
Cyber Liability carriers have dramatically reduced capacity, limits and increased retentions. Cyber has remained a major focus in the industry and is becoming difficult to obtain coverage unless specific security measures and procedures are in place. There was only one (1) viable quote received which represents a 60% increase of approximately $13,000 with an increased retention deductible from $50,000 to $250,000. We will be working with the Board of County Commissioners and Constitutional Offices IT departments to provide information on the procedures and requirements that are needed to secure appropriate coverage and to help mitigate the county’s exposure to cyber-attacks.
The Auto Liability insured values increased by approximately $1.1 million including the addition of six (6) high value (exceeding $100,000) Fire Rescue vehicles for a total premium increase of $21,414.
The total estimated payroll is $96 million, insured auto values at $32 million, and values for buildings, contents and mobile equipment is in excess of $573 million.
BUDGET/IMPACT:
Budget impact is an expenditure of $2,650,157 to be paid from the Insurance Fund as proposed in the FY 2022 budget.
RECOMMENDED ACTION:
Recommended action
Motion to approve the estimated employer insurance renewal in the amount of $2,650,157 to be paid from the Insurance Fund, and authorize Risk and Benefit Services to execute the required documents.
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