Laserfiche WebLink
<br />Sunny Isles Beach Insurance 2008 Property/Casualty Insurance Proposals. .. page 3 <br /> <br />If the PGIT Public Officials/Employment Practices Liability insurance were to be discontinued in <br />favor of FMIT, a coverage gap would be created by the claims made coverage for claims which <br />occurred before July 1,2008, but which are reported in the future. <br /> <br />The current policy would provide extended discovery coverage for only 60 days, and would re- <br />quire an equivalent of a full annual premium to extend the discovery period for a year. <br /> <br />FMIT's proposal also includes an additional premium of $13,510 to provide one year of retroac- <br />tive coverage for claims which occurred up to one year before July 1, 2008. I asked if the retro- <br />active date could be extended further and FMIT quoted $11,334 to go back two additional years. <br /> <br />CONCLUSION <br /> <br />The City of Sunny Isles Beach has an opportunity to change its insurance program from PGIT to <br />FMIT, for a premium savings of approximately $52,000, but the bulk of the savings would come <br />from greatly reducing the City's coverage with regard to windstorm and hail losses. <br /> <br />Currently, the City's real and personal property is valued at about $27,000,000, and FMIT will <br />only provide $10,000,000 of coverage for damage by any wind and hail. Also, FMIT's windlhail <br />deductible for properties within 1/2 mile of the water is a minimum of $100,000 versus $20,000 <br />for PGIT. <br /> <br />There are some differences in the other coverages, but even if the City wanted to combine the <br />property insurance from one proposal and the other coverages from the other proposal, the pro- <br />posals were not structured so as to allow the premiums quoted in a mix and match situation. <br /> <br />Since it is the City's opinion that the windstorm coverage offered by FMIT is unacceptable, we <br />must conclude that it is the City's best option is to renew with PGIT for 15 months at a premium <br />that is approximately $7,000 less than last year's 12 month annual premium. <br /> <br />It is our understanding that City staff has been well pleased with the service provided by PGIT <br />and Brown and Brown. <br /> <br />sh <br />