Reso 2023-3548 - Laserfiche WebLink

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In sum, staff recommends renewal of the Brown & Brown/Preferred Governmental Insurance Trus (PGIT) proposal for the Package Policy and Workers Compensation and miscellaneous insurances a< attached. ADDITIONAL INFORMATION: With regards to the changes in exposure and premium increases, the following should be noted: • Property: On the expiring policy term, the City's total insured value for all structures and outdoor property stood at $66,422,439. This value was determined by the most recent appraisal conducted by Asset Works in 2019. In preparation for the upcoming 2023 renewal, we collaborated with our insurance agent, Brown & Brown, to obtain an updated appraisal. Thi new appraisal considered factors such as the recent increase in construction costs, material prices, labor expenses, and the impacts of inflation. As a result of this on-site appraisal inspection, the City's property value was re -assessed at approximately $78,219,685. Consequently, our property insurance renewal will reflect an 18% increase in appraised values, accompanied by a flat property insurance rate for renewal. The premium increase for property insurance is solely reflective of the increased exposures. • Inland Marine: The primary reason behind the premium increase for our inland marine coverage is the increase of exposures. These exposures have increased from $1,825,300 to $5,268,337. Our decision to reclassify various ATVs from the vehicle schedule to the inland marine schedule contributed to this increase. Additionally, the new appraisal accounted for 126 toters (beach trash cans) and 489 decorative light poles and cameras. These newly included items have added approximately $3 million in insured value to the inland marine schedule. • Marine Hull: The primary reason for the increase is due to the addition of two new boat! bringing the total to three. The covered values have increased from $160,000 to $558,454. The City currently has Commercial Insurance Package (Property, Casualty, and Auto) and Workers Compensation insurance through PGIT which is a premier insurance organization for public entitie! and is a non -assessable Trust approved by the Florida State Legislature. The PGIT board of trustees ha elected to purchase an extremely conservative excess of loss insurance structure which provides PGI1 members several levels of protection that reinsurance does not. PGIT's excess of loss policies list ever individual member a named insured, giving every member direct access to the insurance company for payment of claims. Public Risk Underwriters (PRU), which is a premier insurance service organization for public entitie! and is part of Brown & Brown, is the underwriting group that tailors customized insurance services and products for the City. The City has had a Commercial Package Policy (Property, Casualty, and Auto) and Worker Compensation insurance coverage with PGIT since October 1, 2003. Prior to this date, from July 1 2001 through October 1, 2003, insurance coverage was split between First Specialty Insurance foi Item Number: 10.A