04/07/2015 (4) - Laserfiche WebLink

Home Browse Search

Ms. Beth Martin March 26, 2015 Page 3 SEVER INSURANCE CONSULTANTS SIVER RECOMMENDATION We recommend that the insurance program from AJG be accepted by the County. While the combined insurance premiums plus broker fees for the AJG program is about $51,000 more expensive than the B&B combined costs, there are a few key coverage differences that we considered: • The current self-insured retention (SIR) for liability coverages is $200,000. The AJG proposal includes an SIR of $200,000. The B&B proposal includes a SIR of $500,000. This retention applies to all general liability, law enforcement liability, automobile liability, public officials' liability and employment practices liability claims. • The current property insurance program has a 5% hurricane deductible. This means that the deductible for damage from a hurricane will be higher than the $250,000 deductible that applies to most other types of loss. such as non - hurricane windstorm damage or fire damage. The AJG proposal includes a similar 5% hurricane deductible. The B&B proposal includes a 5% named windstorm deductible. This means that the higher deductible will be applied to damage from hurricanes and damage from named tropical storms. • The AJG proposal also includes an enhancement to the 5% hurricane deductible. The enhancement is a maximum deductible of $5,000,000 from any one occurrence. We only expect this maximum provision to affect the County in the event of a catastrophic hurricane. • The AJG proposal also includes an option to decrease the SIR applying to workers' compensation claims from $750,000 per occurrence to $650,000 per occurrence for additional premium cost of $11,762. We recommend this option be purchased. CLOSING Overall, we are very pleased with the insurance program proposed for the County. If you would like us to provide further detail regarding our recommendations, please let us know. 54