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County Administrator's Report 10. 3.
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| BCC Regular Meeting |
Discussion |
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| RECOMMENDATION: |
Recommendation Concerning Workers’ Compensation Insurance Renewal - Robert Dye, Manager, Risk Management Office
That the Board approve one of the following options concerning the Workers’ Compensation Insurance Renewal:
A. Approve the payment to the Florida Municipal Insurance Trust for the Workers’ Compensation Insurance renewal for Escambia County, effective October 1, 2017, through September 30, 2018, in the amount of $939,360 with a $100,000 per occurrence deductible; or
B. Approve the payment to the Florida Municipal Insurance Trust for the Workers’ Compensation Insurance renewal for Escambia County, effective October 1, 2017, through September 30, 2018, in the amount of $1,911,259 with a $25,000 per occurrence deductible.
[Funding: Fund 501, Internal Service, Cost Center 140834, Object Code 54501] |
| BACKGROUND: |
Florida Municipal Insurance Trust (FMIT) has agreed to combine the BCC and Jail policies into a single account to simplify payroll accountability and future audits.
The selection of a $100K deductible results in a significantly lower premium than in previous years. The premium deposit due for the newly combined BCC employee policy (FMIT 0869) is $1,603,510 less than last year’s combined premium for the BCC and Jail policies and $971,899 less than the $25K deductible option.
Only two markets were willing to quote our workers' compensation, Florida Mutual Insurance Trust (FMIT) and Preferred Governmental Insurance Trust (PGIT). Other markets were unwilling to quote the policy at the rates FMIT and PGIT offered. FMIT provided the lowest quote.
Workers' Compensation was previously directly purchased from FMIT. Achieving the improved renewal rate required the involvement of the County’s General Lines Agent.
Typical commission is 10-14% on most commercial lines of insurance. USI has agreed to broker our account with FMIT at a flat fee rate that compensates them for loss control assistance and brokerage services for all future lines of insurance that benefits the County. A separate recommendation is being submitted by the Purchasing Office to amend the agreement with USI to add $40,000 per year to the annual payment for service, bringing the annual fee to $130,000. |
| BUDGETARY IMPACT: |
| Funding: Fund 501, Internal Service, Cost Center 140834, Object Code 54501 |
| LEGAL CONSIDERATIONS/SIGN-OFF: |
| N/A |
| PERSONNEL: |
| Risk Management will be the contract administrator. |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| This recommendation is in compliance with the provisions of the Code of Ordinances of Escambia County, Florida, Chapter 46, Finance, Article II, Purchase and Contracts. |
| IMPLEMENTATION/COORDINATION: |
Upon approval by the Board of County Commissioners, a purchase order will be issued to provide payment for services rendered from the contract.
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