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Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 18 - RISK MANAGEMENT General Liability, Property and 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 /89 10/1 /92 10/1 /94 Present Worker ' s Compensation $ 100, 000 $ 1003000 $ 1505000 $ 1503000 General Liability 1003000 500, 000 200 , 000 200, 000 Auto Liability 100, 000 500,000 1005000 200, 000 Property Damage 100 , 000 109000 500-255000 500-25 , 000 Errors or Omissions 259000 255000 200 , 000 200 ,000 Annual Aggregate 600 , 000 1 , 000 , 000 190005000 - 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 determined by projected claims based on historical and actuarial experience . The self insurance plan assumes all risk for claims up to $ 125 , 000 per individual , per year, and has purchased a reinsurance policy to cover claims in excess of this amount. There were no claims in excess of this limit for the 2000, 2001 , and 2002 fiscal years . The claims liability of$4,261 ,000 reported at September 30, 2002, is based on the requirements of generally 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 . 82