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SIVER INSURANCE CONSULTANTS Ms. Priscilla Walker September 7, 2011 Page 4 Crime Coverage Both the PGIT and FMIT proposals include coverage for Employee Dishonesty, Forgery, Theft and Computer Fraud in their proposal. The following compares the limits and deductibles in those proposals. We suggest that regardless of whether the City accepts the PGIT or FMIT proposal, higher limits for all the crime coverage, especially Employee Dishonesty, should be considered, Covera!!e PGIT FMIT Employee Dishonesty Limit: $250,000 I Deductible: $5,000 Limit: $1,000,000 I Deductible: $1,000 Forgery or Alteration Limit: $250,000 I Deductible: $5,000 Limit $250,000 I Deductible: $5,000 Computer Fraud Limit: $250,000 I Deductible: $1,000 Limit: $250,000 I Deductible: $1,000 Theft Inside & Outside Limit: $250,000 I Deductible: $1,000 Limit: $250,000 I Deductible: $5,000 Liability Coverages Both FMIT and PGIT proposed continuation of the City's liability limits of $5,000,000 with a $2,500 deductible for General Liability, Public Officials, Employment Practices Liability, Police Professional Liability and a $5,000 deductible for Automobile Liability. As we have already mentioned, FMIT has also included an option for no deductible. The expiring coverage for Public Officials & Employment Practices Liability with PGIT is provided on a "claims made" basis. As FMIT's Public Officials and Employment Practices Liability is proposed on an Occurrence form, they have included a quote for a three years prior acts coverage with their proposal which is intended to help close the gap between the claims made and occurrence coverage. Still, any time coverage is changed from a claims-made to an occurrence policy or even from one claims-made policy to another claims-made policy, there is a potential risk of creating a coverage gap from future claims that arise from circumstances which occurred prior to the change, but were not known and therefore not reported on the old policy. ADDITIONAL POLICIES PROPOSED Public Official Bonds Brown & Brown has provided a proposal for the continuation of the City Manager Position Bond with a $1,000,000 limit for $707 premium. The Florida League also provided a proposal for that same coverage but for a higher premium at $3,191, In addition, the Florida League provided proposals for a Finance Director Bond with options for a $500,000 limit for $1,437 and a $1,000,000 limit for $2,807; however we do not see that coverage was requested in the RFP. Brown and Brown did not provide a quote for a Finance Director Bond.