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Home My WebLink AboutEDB 3 Brown & Brown - Insurance Renewal EXECUTIVE SUMMARY AGENDA ITEM: Request for Property and Casualty Insurance Renewal for Fiscal Year 2023/2024 Date: September 1, 2023 BACKGROUND: Clay County Utility Authority (CCUA) received a renewal premium summary from Brown & Brown "B&B" on Tuesday, August 29, 2023. B&B quoted $2,009,512 for renewal of Property, Inland Marine, Crime, General Liability, Automobile, Public Officials, Workers Compensation, Material Floater, and Pollution Policies. The quoted renewal premiums reflect an overall increase of$792,841, or 65%, over the expiring premiums of $1,216,671, and include commission concessions of $48,530 by B&B. The ca difference in premium quoted by B&B reflects an increase in replacement cost values for real cproperty from $148,956,548 to $261,748,350 due to substantial increases in construction costs in recent years, and an overall hardening the property insurance market in Florida. 0 c BUDGET: L iii Ce Staff budgeted $1,912,282 for insurance coverage within the Fiscal Year 2023/2024 operating budget. Staff will transfer the $97,230 from contingency to cover the increased premium. Staff will also use contingency funds to cover flood insurance premiums that renew in January/February 2024. RECOMMENDATION: The insurance renewal quote from B&B is consistent with the current state of the insurance market in Florida and the updated replacement cost values of CCUA plants and facilities. Accordingly, staff requests the Board of Supervisors accept the insurance quote and authorize staff to renew the insurance policies. ATTACHMENTS: Insurance premium summary from Brown& Brown //SJ(Author) //JW,KR(Review) //KR(Final) Covered Party: Clay County Utility Authority I Brown&Brown Effective Date: 10/1/2023 INSURANCE' Version Date: 8/25/2023 2023/2024 Changes in Exposures LINE OF COVERAGE LIMIT DEDUCTIBLE/SIR ANNUAL LIMIT DEDUCTIBLE/SIR ANNUAL 2022/2023 2023/2024 PREM PREM Property: Preferred Govt'l Ins Trust Blanket Buildings&Contents $ 148,956,548 $ 10,000 $ 471,741 $ 261,748,359 $ 10,000 $ 1,155,683 Property Equipment Breakdown $ 100,000,000 $ 10,000 _$ 100,000,000 $ 10,000 Exposure $ 112,791,811 Excess Flood $ - $ - Difference 75.72% Earth Movement $ 1,000,000 $ 10,000 $ 1,000,000 $ 10,000 Premium $ 683,942 Named Windstorm 2%/$25,000 Minimum 5%/$35,000 Minimum Difference 144.98% Accounts Receivable $ 500,000 $ 10,000 $ 500,000 $ 10,000 39%Rate Increase Additional Expense $ 1,000,000 $ 10,000 _ $ 1,000,000 $ 10,000 Business Income $ 1,000,000 $ 10,000 _ $ 1,000,000 $ 10,000 Errors&Omissions $ 250,000 $ 10,000 $ 250,000 $ 10,000 Demolition&Increased Cost of Construction $ 1,000,000 $ 10,000 $ 1,000,000 $ 10,000 Inland Marine: Inland Marine Communications Equipment Included $ 5,000 $ 13,770 Included $ 5,000 $ 22,390 $ 3,198,936 $ 3,580,579 Mobile Equipment $ 2,198,936 $ 5,000 $ 2,580,579 $ 5,000 Exposure $ 381,643 Electronic Data Processing Included $ 5,000 Included $ 5,000 Difference 11.93% Emergency Services Portable Equip Included $ 5,000 Included $ 5,000 Premium $ 8,620 Other Inland Marine Included $ 5,000 Included $ 5,000 Difference 62.60% Rented Borrowed Leased Equipment $ 500,000 $ 5,000 $ 500,000 $ 5,000 45%Rate Increase Valuable Papers Included $ 5,000 Included $ 5,000 Watercraft Not Covered $ 5,000 Not Covered $ 5,000 Blanket Unscheduled Inland Marine $ 500,000 $ 5,000 $ 500,000 $ 5,000 $ 485,511 $ 1,178,073 t0 Crime: Preferred Govt'l Ins Trust Employee Dishonesty $ 250,000 $ 5,000 $ 1,101 $ 250,000 $ 5,000 $ 1,229 Theft,Disappearance&Destruction In/Out $ 50,000 $ 5,000 $ 50,000 $ 5,000 Forgery/Alterations $ 100,000 $ 5,000 $ 100,000 $ 5,000 11.6%Increase Sub-Total $ 1,101 Sub-Total $ 1,229 General Liability: _ Payroll Payroll 'Preferred Govt'l Ins Trust _ $13,322,083 $15,446,800 General Liability $ 2,000,000 $ 5,000 $ 270,070 $ 2,000,000 $ 5,000 $ 337,539 Exposure $ 2,124,717 Employee Benefits $ 2,000,000 $ 5,000 Included $ 2,000,000 $ 5,000 Included Difference 15.95% Deadly Weapong Protection $ 1,000,000 $ - Included $ 1,000,000 $ - Included Premium $ 67,469 _ Difference 24.98% 8%Rate Increase Sub-Total $ 270,070 Sub-Total $ 337,539 This proposal is intended to give a brief overview.Higher limits may be available.Please refer to coverage forms for complete details regarding definition of terms,exclusions and limitations. 2022/202 . 2023/2024 Changes in Exposures LINE OF COVERAGE LIMIT DEDUCTIBLE/SIR ANNUAL LIMIT DEDUCTIBLE/SIR ANNUAL 2022/2023 2023/2024 PREM PREM Automobile: Vehicles Preferred Govt'I Ins Trust h 147 I 142 Total Insured Value Auto Liability $ 2,000,000 $ - $ 101,972 $ 2,000,000 $ - $ 106,826 $7,306,155 $5,118,611 Uninsured Motorist Not Covered Not Covered Exposure -$2,187,544 Comprehensive/Collision Symbol 10,8 $ 5,000 $ 54,140 $ 5,000 $ 36,416 Difference 30.00% Hired Physical Damage $ 50,000 $ 5,000 $ 50,000 $ 5,000 Premium $ (12,870) Medical Payments $ 5,000 Included $ 5,000 Difference $ 4,854 8.5%Liability Rate Increase Sub-Total $ 156,112 Sub-Total $ 143,242 Public Officials: Payroll Payroll Preferred Govt'l Ins Trust $13,322,083 $15,446,800 Public Officials Liability $ 5,000,000 $ 10,000 $ 73,820 $ 5,000,000 $ 10,000 $ 87,004 Exposure $ 2,124,717 Employment Practices Liability $ 5,000,000 $ 25,000 Included $ 5,000,000 $ 25,000 Included Difference 15.95% Cyber Liability Included Included Included Included Included $ 2,295 Premium $ 15,479 Difference 20.97% 4%Rate Increase Sub-Total $ 73,820 - Sub-Total $ 89,299 Workers'Compensation: Payroll Payroll Preferred Govt'I Ins Trust 22/23 Payroll: $13,322,083 23/24 Payroll: $15,446,801 $13,322,083 $15,446,801 _ Experience Mod: 1.00 Experience Mod: .87 Exposure $ 2,124,718 Workers'Compensation Statutory $ - $ 175,646 Statutory $ - $ 179,960 Difference 15.95% Employers Liability $1m/$1m/$1m $ - Included $1m/$1m/$1m $ - Premium $ 4,314 $ 175,646 $ 179,960 Difference 2.46% Material Floater: Travelers Material Floater $ 2,000,000 $ 2,500 $ 7,500 $ 2,000,000 $ 2,500 $ 8,020 Flood $ 1,000,000 $ 10,000 $ 151 $ 1,000,000 $ 10,000 State Fees $ State Fees $ 136 Premium $ 505 tO Sub-Total $ 7,651 _ Sub-Total $ 8,156 Difference 6.60% Pollution: _ Indian Harbor $148,956,548 $261,543,359 Each Pollution Condition/Aggregate $1,000,000/$1,000,000 $ 100,000 $ 67,906 $1,000,000/$1,000,000 $ 100,000 $ 71,301 Exposure $ 112,586,811 TRIA $ 679 $ 713 Difference 75.58% Sub-Total $ 68,585 Sub-Total $ 72,014 Premium $ 3,395 Difference 4.95% TOTAL PREMIUM $1,238,496 $2,009,512 Difference 62.3% This proposal is intended to give a brief overview.Higher limits may be available.Please refer to coverage forms for complete details regarding definition of terms,exclusions and limitations.