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<br />Indian River County, Florida
<br />I Board of County Commissioners
<br />Notes To Financial Statements
<br />Year Ended September 30, 2014
<br />1 NOTE 19 - RISK MANAGEMENT
<br />1 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 />I 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 />I10/01/08 to 05/01/11 to 10/01/13 to
<br />4/30/2011 9/30/2013 9/30/2014
<br />IWorker's Compensation $ 350,000 $ 350,000 $ 500,000
<br />General Liability 250,000 200,000 200,000
<br />1 Auto Liability 250,000 200,000 200,000
<br />Property Damage 250,000 200,000 200,000
<br />Error or Omissions 250,000 200,000 200,000
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<br />Annual Aggregate 2,000,000 2,000,000 2,000,000
<br />Liquor Liability 1,000,000 1,000,000 1,000,000
<br />1 The Board purchases excess insurance to cover claims in excess of the liability coverage listed above.
<br />There is a 5% deductible per location for property damages arising due to a hurricane under the
<br />I reinsurance policy. 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. The Board has received three workers compensation reimbursements
<br />I totaling $125,213 in fiscal year 2014. The Board received two workers compensation reimbursements
<br />totaling $108,123 in fiscal year 2013 and one in fiscal year 2012 totaling $134,020.
<br />I 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 />I 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 medical plan assumes all risk for claims, other than
<br />I worker's compensation, up to $250,000 per occurrence. The Board has purchased a reinsurance policy
<br />to cover claims in excess of these limits. There were six medical claim reimbursements in excess of the
<br />$250,000 limit for fiscal year 2014 totaling $335,641. In fiscal year 2013, there were six totaling
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<br />$285,689 and in fiscal year 2012, there were none.
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