Agenda Item: 7(b)
Prepared By: Lina Upham
Business: Consent
Department: Finance
Subject:
Title
Renewal of the Policy for FY2020 Property, Liability, and Excess Worker's Compensation Insurance Coverage with Public Risk Insurance Agency ("PRIA") in the amount of $884,357.00
Body
BACKGROUND:
City Council is asked to approve the renewal of property, liability and excess worker's compensation insurance policy through Public Risk Insurance Agency ("PRIA") for FY2020. The City has received a renewal notice, at the premium of $884,357.00 for FY2020.
While renewal premium is about 16% higher than FY2019 premium, with a 20% increase in property values, the rate actually decreased by 4%. City's Risk Manager, Finance Director, and risk management consultant Ben Few & Co. spent approximately six months negotiating with insurance carriers and brokers to secure the best deal for the City.
Governments throughout the state of Florida are seeing increases in the property insurance rates due to the hurricanes that have hit the state in the last few years. Also, City has reappraised its insurable property in 2018; it was done in 2012 before that. Difference in the insured value went from $99,400,018.00 to $120,356,117.00.
Please also note that as of today, City has received $400,000.00 from PRIA due to the Hurricane Irma losses. City is working towards receiving additional payments.
Listed below are the total (property and liability) premium costs for the past eight years:
FY2013 - $723,778;
FY2014 - $707,767;
FY2015 - $702,085;
FY2016 - $673,078;
FY2017 - $654,907;
FY2018 - $638,582;
FY2019 - $756,224;
FY2020 - $884,357.
The detailed premium breakout for FY2020 and comparison with the previous year is attached to this agenda item.
FUNDING SOURCE / FISCAL IMPACT:
All premiums have been included in the proposed FY2020 budget.
RECOMMENDATION:
Authorize the City Manager to renew property and liability insurance policy with PRIA for FY2020.
POTENTIAL M...
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