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Indian River County, Florida
<br />Board of County Commissioners
<br />Notes To Financial Statements
<br />Year Ended September 30, 2017
<br />NOTE 16 - RISK MANAGEMENT
<br />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 />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 />10/01/13 to 10/01/14 to 10/01/15 to 10/01/16 to
<br />9/30/2014 9/30/2015 9/30/2016 9/30/2017
<br />Worker's Compensation $
<br />500,000 $
<br />750,000
<br />$ 650,000
<br />$ 650,000
<br />General Liability
<br />200,000
<br />200,000
<br />200,000
<br />200,000
<br />Auto Liability
<br />200,000
<br />200,000
<br />200,000
<br />200,000
<br />Property Damage
<br />200,000
<br />200,000
<br />200,000
<br />200,000
<br />Error or Omissions
<br />200,000
<br />200,000
<br />200,000
<br />200,000
<br />Annual Aggregate
<br />2,000,000
<br />2,000,000
<br />2,000,000
<br />2,000,000
<br />Liquor Liability
<br />1,000,000
<br />1,000,000
<br />N/A
<br />N/A
<br />All departments of the Board participate in the program. Payments are made by various funds to the
<br />Self Insurance Fund based on past experience and actual estimates of the amounts needed to pay current
<br />year claims. The Board has received three workers compensation reimbursements totaling $37,643 in
<br />fiscal year 2017, two workers compensation reimbursements totaling $49,222 in fiscal year 2016, and
<br />three workers compensation reimbursements totaling $409,914 in fiscal year 2015.
<br />The Board purchases excess insurance to cover claims in excess of the amounts listed above. There is a
<br />5% deductible per location for property damages arising due to a hurricane under the reinsurance policy.
<br />In fiscal year 2017, the County was approved by the insurance carriers to receive $5,688,375 in
<br />insurance recoveries related to Hurricane Matthew damage.
<br />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 />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 />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 three medical claim reimbursements totaling
<br />$61,593 in excess of the $250,000 limit for fiscal year 2017. In fiscal year 2016 there were none and in
<br />fiscal year 2015 there were four totaling $382,635.
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