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SIVER INSURANCE CONSULTANTS Ms. Priscilla Walker September 7, 2011 Page 2 As discussed further below, we recommend that the City consider discontinuing the separate glass policy currently provided by USPlate Glass Insurance. The amount proposed for the renewal of the glass policy by Brown and Brown Insurance is $11,874. DISCUSSION AND COMMENTS PACKAGE COVERAGE PGIT Renewal Coverage We have recommended that the City renew their package coverages, including workers' compensation, with the Preferred Governmental Insurance Trust (POIT) through Brown and Brown Insurance (Brown & Brown) for a premium of $623, 195, which is about 3Yz% higher than the expiring premium of $601,629, a difference of $21,566. That premium difference is almost entirely due to the cost of workers' compensation coverage this year, which increased nearly 37% (from $99,708 to $136,429) due to a . higher workers compensation experience modification of 1.09 (from .86) and an increase in workers' compensation premium rates published by the National Council on Compensation Insurance (NCCI). Fortunately, a slight decrease in the cost of property and automobile liability coverages offset a portion of that higher workers' compensation premIUm. The renewal coverage is offered on basically the same terms and conditions as the expiring policy. The total property values have increased from $26,400,840 to $35,713,210 and inland marine values are now $3,364,156 (compared to $3,168,056 last year). FMIT Renewal Proposal The Florida League of Cities (Florida League) and Florida Municipal Insurance Trust (FMIT) offered a competitive proposal for basically the same package coverages as POIT for an estimated cost of $553,650. Although that proposal appears to be significantly lower than PGIT, in order to compare the proposals, it is necessary to include an additional premium cost for "prior acts" coverage, which the League advises us is $31,610, which brings the total of the FMIT quote to $585,260. FMIT also proposed an option which removes the liability deductibles for general liability, public officials, law enforcement liability, automobile liability and workers compensation for an additional premium of $16,484, which brings their proposed premium, with prior acts coverage, to $601,744. Although still lower than the POIT proposal by $21,451, the FMIT proposal includes some coverage differences, we will address below.