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/SAF <br />SONNY <br />City of Sunny Isles Beach <br />18070 Collins Avenue <br />;.. <br />Sunny Isles Beach, Florida 33160 <br />?Y•/P9)•-..-�,4P 4 <br />(305) 947.0606 City Hall <br />B°'>, FSO Ado <br />OL 54� <br />(305) 949-3113 Fax <br />MEMORANDUM <br />TO: The Honorable Mayor and City Commission <br />VIA: Christopher J. Russo, City Manager <br />FROM: Yael Y Londono, HR & Risk Management Director <br />DATE: 9/17/2020 <br />Renewal of Property, Casualty, Auto, Workers Comp <br />RE: Insurance with Brown & Brown/Preferred Government <br />Insurance Trust (PGIT) <br />RECOMMENDATION: <br />It is recommended that the City Commission approve the attached <br />resolution to renew the City's Property, Liability, Auto, and Workers <br />,Compensation insurance with the Preferred Government Insurance <br />Trust (PGIT) and/or Brown & Brown Insurance for the period of <br />October 1, 2020 through September 30, 2021 in an amount not to <br />exceed $1,600,000.00. <br />REASONS: <br />The renewal premium for the Commercial Package Policy (Property, <br />Liability, and Auto) and Workers Compensation is $1,501,135.00 <br />which is $95,047 or 6.7% more than last year ($1,406,088.00). The <br />contributing factor for the premium increase is due to claims, payroll <br />and additional property. <br />Additionally, staff is allocating $98,865.00 for deductibles and for <br />additional premiums expected upon the completion of capital projects, <br />which will be added to the property insurance during the upcoming <br />fiscal year. <br />Staff worked closely with Brown & Brown (Robert Hollander) to review <br />possible courses of action to reduce premiums to include increasing <br />our deductibles in certain coverage and the feasibility of self-insurance <br />in areas that we as a City have had good claims experience. Based on <br />the available options, renewal with PGIT with the coverage and terms <br />indicated is our best, most cost effective, option. <br />In sum, staff recommends renewal of the Brown & Brown/Preferred <br />Governmental Insurance Trust (PGIT) proposal for the Package Policy <br />and Workers Compensation and miscellaneous insurances as <br />attached. <br />ADDITIONAL INFORMATION: <br />The City currently has Commercial Insurance Package (Property, <br />Casualty, and Auto) and Workers' Compensation insurance through <br />PGIT which is a premier insurance organization for public entities and <br />is a non -assessable Trust approved by the Florida State Legislature. <br />The PGIT board of trustees has elected to purchase an extremely <br />conservative excess of loss insurance structure which provides PGIT <br />members several levels of protection that reinsurance does not. <br />PGIT's excess of loss policies list every individual member a named <br />insured, giving every member direct access to the insurance company <br />