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BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
DATE: March 19, 2013
TO: Honorable Chairman and Members of the Board
FROM: Kay Godwin
SUBJECT: Move Renewal Date for the County's Property Insurance
DEPARTMENT: Human Resources
BCC DISTRICT: All
STATEMENT OF ISSUE: Request authority to move the renewal date of the county's
property insurance from October 1 to April 1.
BACKGROUND: We are recommending that the county change the renewal date of the
property insurance to April 1 from October 1. The April renewal date will allow us to renew our
coverage without the fear that a recent Hurricane will negatively impact rates or that uncertain
weather in the Gulf of Mexico will cause insurers to not bind coverage leaving the county
vulnerable to catastrophic losses. To achieve this goal we are recommending that we enter into
an agreement to extend our current property coverage for six months. This extension will be at a
premium increase of 5% for a total of $450,752.65 for the additional six months. This premium
will be due October 1, 2013. In April of 2014 we will then pay a full year premium which we
estimate to be $901,505.30. The remainder of our insurance program will continue on an
October 1 renewal with an estimated premium of $514,793.21 assuming no increases. Our
projected payments due in FY 2014 will total $965, 545.86 on October 1, 2013 and $901,505.30
on April 1, 2014 for a total of $1,867,051.16. Estimated premiums for FY 2015 will return to
prior levels of premiums in the area of $1.4 million dollars. Risk Management will work with
our broker to negotiate a cost effective insurance plan for all of the county's other risks including
general liability, excess worker's compensation and other coverage.
In summary Risk Management is proposing the county spend an additional $450,752.65 during
FY 2013-2014, to move the renewal date of the county's property insurance from October 1 to
April 1. This will allow the county to negotiate our insurance programs when the insurance
market is less volatile. In FY 2014-2015 our insurance premiums will return to normal levels of
approximately $1.4 million.
OPTIONS: The quoted rates are effective until 3/27/2013. The county may either agree to
move the renewal date of the property insurance to 4/1/2013 or we can continue with the current
October renewal date.
RECOMMENDATIONS: Risk Management recommends that the county move the renewal
date to April 1.
RECOMMENDED BY:
APPROVED BY:
James D. Curry, County Administrator