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Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 18 - RISK MANAGEMENT General Liability, Property Yand Worker 's Compensation The County is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets, errors or omissions, injuries to employees, and natural disasters . During a previous fiscal year, the County established a fund to account for risk management called the Self Insurance Fund (an internal service fund) . The risk management program began on November 1 , 1988 , and has provided coverage for the County as follows : 11 / 1 /88 - 10/ 1 /89- 10/ 1 /92- 10/ 1 /94- 10/ 1 /02- 10/ 1 /89 10/ 1 /92 10/ 1 /94 10/ 1 /02 Present Worker 's compensation $ 100, 000 $ 10000 $ 150 , 000 $ 15000 $ 350 , 000 General Liability 10000 5005000 200 , 000 200, 000 2009000 Auto Liability 100,000 5005000 1005000 200, 000 200 , 000 Property Damage 1003000 105000 500 -255000 500 -255000 500 -25 , 000 Error Omissions 259000 25 , 000 2005000 2005000 200, 000 AnnualAggregate 600,000 15000 , 000 1 ,000,000 150005000 1 , 000,000 The County purchases commercial insurance for claims in excess of coverage provided by the fund and for all other risks of loss . The County has not incurred any settlements in excess of the insurance coverage in the past three fiscal years . All departments of the County participate in the program . Payments are made by various funds to the Self Insurance Fund based on past experience and actual estimates of the amounts needed to pay current year claims . The County is also self insured for medical claims covering employees and their eligible dependents . As required by Section 112 . 081 , Florida Statutes, retirees and their eligible dependents are provided the same health care coverage as -; is offered to active employees, however, the retirees are responsible for payment of the premiums. Medical claims are paid from premiums contributed by employees , retirees and by the County. Premiums and contributions are deter- mined by projected claims based on historical and actuarial experience. The self insurance plan assumes all risk for claims u to $ 125 000 per individual policy P P , per year, and has purchased a reinsurance otic to cover claims in excess of this I amount. There were no claims in excess of this limit for the 2001 , 2002 , and 2003 fiscal years . The claims liability of $4,581 ,000 reported at September 30, 2003 , is based on the requirements ofgenerally accepted governmental accounting standards, which require that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements , and the amount of the loss can be reasonably estimated. Estimates for claims incurred but not reported are actuarially determined and recorded. Based on the actuary's report, $ 1 ,991 , 000 wil be liquidated over the next twelve months . 86