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Indian River County, Florida
<br />Board of County Commissioners
<br />Notes To Financial Statements
<br />Year Ended September 30, 2011
<br />NOTE 20 - RISK MANAGEMENT
<br />General Liability, Property, Worker's Compensation and Medical
<br />The Board is exposed to various risks of loss related to torts, theft of, damage to and destruction of
<br />assets, errors or omissions, injuries to employees, and natural disasters. The Board established a Self
<br />Insurance Fund (an internal service fund) to account for and finance its uninsured risk of loss. Under
<br />this program, the Self Insurance Fund provides coverage as follows:
<br />The Board purchases excess insurance to cover claims in excess of the coverage listed above. There is a
<br />5% deductible per location for property damages arising due to a hurricane under the reinsurance policy.
<br />The Board has not incurred any settlements in excess of the insurance coverage listed above in the past
<br />four fiscal years. All departments of the Board participate in the program. Payments are made by
<br />various funds to the Self Insurance Fund based on past experience and actual estimates of the amounts
<br />needed to pay current year claims.
<br />The Board is also self-insured for medical claims covering employees and their eligible dependents. As
<br />required by Section 112.081, Florida Statutes, retirees and their eligible dependents are provided the
<br />same health care coverage as is offered to active employees; however, the retirees are responsible for
<br />payment of the premiums. Medical claims are paid from premiums contributed by employees, retirees,
<br />and by the Board. Premiums and contributions are determined by projected claims based on historical
<br />and actuarial experience. The self insurance plan assumes all risk for claims, other than worker's
<br />compensation, up to $250,000 per occurrence. For worker's compensation, the plan assumes all risk for
<br />claims up to $350,000 per occurrence. The Board has purchased a reinsurance policy to cover claims in
<br />excess of these limits. There were no claims in excess of these limits for the 2009, 2010, and 2011 fiscal
<br />years.
<br />285
<br />04/01/08 to
<br />10/01/08 to
<br />05/01/11 to
<br />09/30/08
<br />04/30/11
<br />09/30/11
<br />Worker's Compensation
<br />$ 300,000
<br />$ 350,000
<br />$ 350,000
<br />General Liability
<br />250,000
<br />250,000
<br />200,000
<br />Auto Liability
<br />250,000
<br />250,000
<br />200,000
<br />Property Damage
<br />500-25,000
<br />250,000
<br />200,000
<br />Error or Omissions
<br />250,000
<br />250,000
<br />200,000
<br />Annual Aggregate
<br />1,000,000
<br />2,000,000
<br />2,000,000
<br />Liquor Liability
<br />1,000,000
<br />1,000,000
<br />1,000,000
<br />The Board purchases excess insurance to cover claims in excess of the coverage listed above. There is a
<br />5% deductible per location for property damages arising due to a hurricane under the reinsurance policy.
<br />The Board has not incurred any settlements in excess of the insurance coverage listed above in the past
<br />four fiscal years. All departments of the Board participate in the program. Payments are made by
<br />various funds to the Self Insurance Fund based on past experience and actual estimates of the amounts
<br />needed to pay current year claims.
<br />The Board is also self-insured for medical claims covering employees and their eligible dependents. As
<br />required by Section 112.081, Florida Statutes, retirees and their eligible dependents are provided the
<br />same health care coverage as is offered to active employees; however, the retirees are responsible for
<br />payment of the premiums. Medical claims are paid from premiums contributed by employees, retirees,
<br />and by the Board. Premiums and contributions are determined by projected claims based on historical
<br />and actuarial experience. The self insurance plan assumes all risk for claims, other than worker's
<br />compensation, up to $250,000 per occurrence. For worker's compensation, the plan assumes all risk for
<br />claims up to $350,000 per occurrence. The Board has purchased a reinsurance policy to cover claims in
<br />excess of these limits. There were no claims in excess of these limits for the 2009, 2010, and 2011 fiscal
<br />years.
<br />285
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