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<br />Indian River County, Florida
<br />Memorandum
<br />TO: Jason Brown, County Administrator
<br />THRU: Michael Smykowski, Director, OMB
<br />FROM: Beth Martin, Risk Manager
<br />DATE: March 29, 2018
<br />SUBJECT: Property/Casualty Insurance 2018-19
<br />Please consider the following for inclusion on the April 17, 2018 Board of County
<br />Commissioners' agenda.
<br />Background
<br />In preparation for the May 1, 2018 renewal, staff worked with Arthur J. Gallagher Risk
<br />Management Services, Inc. (AJG) to secure the most comprehensive, cost-efficient property and
<br />casualty insurance program for the County. On this third renewal of the five-year service
<br />agreement with AJG, we present a program with a 16.09% percent price increase based upon
<br />increased property value, payroll projections and current insurance industry market conditions.
<br />The table below summarizes the lines of coverage and costs. It is followed by a discussion
<br />detailing variables that impacted renewal rates.
<br />Summary
<br />Coverage
<br />Current
<br />Renewal
<br />Increase
<br />Change
<br />Property
<br />$ 984,738
<br />$1,221,367
<br />$236,629
<br />24.03%
<br />Equipment Breakdown
<br />10,528
<br />10,890
<br />362
<br />3.43%
<br />Inland Marine
<br />51,771
<br />57,226
<br />5,455
<br />10.54%
<br />Terrorism Liability
<br />11,500
<br />11,500
<br />0
<br />0.00%
<br />Nuclear, Chemical, Biological, Radiological
<br />Terrorism (NCBR
<br />7,275
<br />7,275
<br />0
<br />0.00%
<br />Property Terrorism
<br />9,500
<br />9,500
<br />0
<br />0.00%
<br />Crime
<br />4,903
<br />5,005
<br />102
<br />2.08%
<br />Public Entity Excess Liability
<br />146,000
<br />153,300
<br />7,300
<br />5.00%
<br />Excess Workers Compensation
<br />164,688
<br />171,216
<br />6,528
<br />3.96%
<br />Cyber
<br />19,432
<br />19,443
<br />11
<br />0.06%
<br />Hull/P&I
<br />7,797
<br />7,808
<br />11
<br />0.14%
<br />Fee
<br />175,000
<br />175,000
<br />0
<br />0.00%
<br />TOTAL
<br />$1,593,132
<br />$1,849,530
<br />$256,398
<br />16.09%
<br />168
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