Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Authorizing The Appropriate City Officials To Purchase Umbrella Liability Insurance For An Amount Not To Exceed $75,000.00.
Body
Staff Recommends: Approval of Attached Resolution.
Explanation:
The City desires to protect its assets through the purchase of various insurance products. In accordance with the City’s Purchasing Ordinance, Section 38.40(C)(9), purchases of insurance through the City’s “Agent of Record” are exempt from the competitive bid and competitive proposal requirements. On May 15, 2019, through RFP 4606-19-AP and Resolution R-2019-011, the City designated as its broker of record, Aon Risk Services, Inc. of Florida.
In accordance with Chapter 768.28, Florida Statues, the City’s limits of liability under the waiver of sovereign immunity law are $200,000.00 per person’s claim and $300,000.00 per occurrence. However, the Florida State Senate is considering Senate Bill 1302 which would dramatically increase the cap to $1,000,000.00 plus an additional annual amount based on the Consumer Price Index. Also, the cap can be pierced by a Federal cause of action, incident involving multiple causes of action or class action suits or civil rights violations/allegations. Additionally, there has been a dramatic increase in liability claims filed over the past few years. Therefore, it has been determined that it would be prudent if the City purchased an umbrella liability policy of $1,000,000.00 per claim and $3,000,000.00 aggregate excess of our primary liability policies.
Allied Public Risk has quoted the lowest annual premium for this policy at $105,699.07. The prorated premium for the policy period from February 6, 2020 to October 1, 2020 will not exceed $75,000.00.
Funding has been identified and is available in the Fiscal Year 2020 budget in the City’s Self Insurance Fund (Fund 58).
Recommended for inclusion on the agenda by:
Peter Junker, Risk Manager
Tammie L. Hechler, Director of Human Resources
George R. Keller, Jr., Deputy City Manager