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1 <br />Board of County Commissioners <br />Page 2 of 4 <br />April 4, 2016 <br />i <br />I <br />Excess Workers' Compensation: The market for public employer workers' compensation is <br />extremely limited due to fire and police exposures which are subject to presumption laws. <br />Nevertheless, the renewal offers a two-year rate guarantee and a flat rate of $0.20975, with the <br />same $650,000.00 self-insured retention as the current year. Cost for renewal is $154,745.00. <br />Cyber Liability: The County initially purchased this coverage in 2014, and the renewal premium <br />of $17,226.00, or an increase of $185.00 includes coverage for contractual assessments, fines and <br />penalties due to a security breach and non-compliance with the Payment Card Industry Data <br />Security Standard. <br />Terrorism: Once again, renewal premiums have decreased. For the property program, a 7% <br />reduction produced a premium of $11,387.00. For the liability program, a 20% reduction <br />produced a premium of $18,995.00. <br />Hull and Protection & Indemnity: While exposures remained the same, premium decreased 4% <br />to $7,776.00 <br />Boiler and Machinery: The County is in the midst of a three-year policy with Travelers but <br />sublimits were enhanced with a premium reduction of 7.6% to $10,140.00. <br />Inland Marine: While rates were decreased approximately 7.5%, the premium increased slightly <br />due to a .10% increase in exposures. Renewal premium is $53,327.00, or a $295.00 increase over <br />2015-16J <br />1 <br />Crime: As with Boiler and Machinery, this is a mid-term three-year policy with no changes to <br />the $4,903.00 annual premium. <br />Summary <br />The proposed 2016-17 renewal has a premium reduction of $90,888.38, or 6.3%, with <br />$35,000,000.00 Named Storm limits. Given this savings, and the two-year rate guarantee on <br />major coverage lines, staff recommends the purchase of an additional $5,000,000.00 in Named <br />Storm limits at a cost of $30,000.00, bringing overall savings to $60,888.38. This increase will <br />align with the probable maximum loss from a 250 -year storm as detailed on Page 4 of AJG's <br />Executive Summary. <br />i <br />175 <br />