9/28/1993 - Laserfiche WebLink

Home Browse Search

COUNTY PROPERTY INSURANCE RENEWAL 1993-94 The Board reviewed memo from Risk Manager Beth Jordan dated September 21, 1993: TO: James E. Chandler, County Administrator THRU: Jack Price, Personnel Director FROM: Beth Jordan, Risk Manager DATE: 21 September 1993 SUBJECT: Property Insurance Renewal 1993-94 The following is presented for Board consideration on September 28, 1993, for renewal of the County's commercial property insurance coverages. Background In 1992, with the assistance of Waters Risk Management Consultants, the County reviewed competitive bids for its commercial insurance coverages. At that time, the Board adopted the recommendations of Waters and staff, awarding general liability and workers' compensation lines to the Florida Municipal Insurance Trust (Florida League of Cities) and the property, inland marine (heavy equipment, radios, etc.) and boiler/machinery lines to Appalachian Insurance Company through Schwab & Company, broker, Miami. Analysis Following Hurricane Andrew, the County found itself in the same position as other local governments and private citizens as major insurance carriers cancelled br non -renewed policies. We were notified that while Appalachian wanted to maintain the County's business due to our excellent loss history, it had approached the Florida Department of Insurance with plans to cancel its larger South Florida customers. The Department refused to allow Appalachian to pick its customers in that manner, advising Appalachian that it either had to underwrite all or none of its customers. Appalachian chose the latter and withdrew from the Florida commercial property market. Immediately, Schwab & Company contacted 22 major commercial carriers to put together a program for Indian River County. Those carriers were effectively a "Who's Who" of major companies: Fireman's Fund, Royal, General Star, etc. Because of their losses due to Andrew, none was willing to underwrite the County alone, and instead, formed a consortium to underwrite specific layers of coverage, which will be outlined below. At the same time, staff• contacted the Florida League of Cities, former long-time carrier for the County, and requested a quote to re-enter their coverage. As can be imagined, the League was literally inundated with similar requests from local governments, including the City of Vero Beach which was refused a quote. Only because of our long-standing relationship and. excellent loss history with the League were we afforded a quote. For 1992-93, property insurance premium for the County was $67,000.00, with a $10,000.00 per occurrence deductible for most losses, effectively making the County its own self -insurer. The League of Cities has proposed a policy with a $5,000.00 deductible for most losses and with a 20/o/$5,000.00 windstorm deductible and one-half of 1 % water damage, deductible for property located within one-half mile of coastal waters. Premium will be $200,965.00. 19 P 2 1993 BOOK 90 FvUL b58 �P