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TO: William G. Collins, II, Acting County Administrator <br />FROM: Charles P. Vitunac, County Attorney <br />DATE: Octol5er 26, 1988 <br />RE: INSURANCE RECOMMENDATIONS <br />On Friday, October 14, 1988, I attended an insurance <br />presentation at which you, Joe Baird, and I listened to <br />proposals from three different insurance companies, i.e., <br />the Florida League of Cities, Gallagher -Bassett, and the <br />Schlitt Insurance Agency. You have asked for <br />recommendations from Joe Baird and me concerning our opinion <br />of the presentations. <br />My recommendation for liability insurance coverages would be <br />to remain with the Florida League of Cities. <br />I make this recommendation because the $638,000 pure premium <br />paid to the Gallagher Company plus the County's payment of <br />the first $100,000/$200,000 of each incident are such high <br />numbers that the County is not guaranteed a savings over the <br />policies which it already has. Without a strong possibility <br />of dollar savings, there are other reasons to remain with an <br />insurance company with which we are familiar. These are as <br />follows: <br />There have been considerable personnel changeovers in Indian <br />River County in the last six months including the creation <br />of the position of Risk Manager, and there has not been <br />sufficient time for the development and implementation of a <br />serious risk reduction program. Any full or partial <br />self-insurance program requires a strong component of risk <br />reduction to ensure cost savings. I believe that the 1989 <br />budget year would be a more appropriate time to consider <br />self-insurance proposals. Waiting until October 1989 to <br />reconsider this matter would also allow the County time to <br />develop a plan for total self insurance --either alone or <br />with Vero Beach or with some other pooling arrangement. The <br />pool concept is expanding geometrically now throughout the <br />United States in public agencies and if our County can <br />establish a low.Ioss rate and join with similarly situated <br />public agencies the possibility of real cost reduction would <br />be available. <br />In conclusion without a convincing reason to switch <br />companies, I would recommend staying with the Florida League <br />of Cities for the liability policies and authorizing staff <br />to continue to investigate self-insurance concepts for the <br />next fiscal year. <br />54 <br />NOV 11988 <br />15 PAGE <br />54 <br />