PUBLIC RISK MANAGEMENT OF FLORIDA
Request for Qualifications
Insurance Broker Services – Property and Casualty Insurance
SECTION 1
1.1 PURPOSE
The Public Risk Management of Florida (PRM) Board of Directors (the “Board”), a risk management and self-insurance public entity pool, seeks to designate a broker of record for the Board’s property and casualty insurance programs. The Board is requesting proposals from qualified firms to provide brokerage services to the Pool. Desired services include the marketing and placement of property and casualty insurance policies customarily carried by the Board, as outlined in the attached Insurance Summary, as well as other services as further defined herein.
1.2 BACKGROUND INFORMATION
PUBLIC RISK MANAGEMENT OF FLORIDA
HISTORY
As a result of the tight insurance market for the public entities in the mid 1980’s, a group of cities and counties in southwest Florida made an extensive study into the feasibility of establishing a Public Entity Pool for property, casualty and workers’ competitive coverage.
Major objectives of the group were as follows:
1. Lower Costs
2. Enhanced Coverage
3. Outstanding Claim and Loss Control Services
4. Stability
5. Self Governed by Members
6. Professional and Timely Service
As a result of the study, Public Risk Management of Florida (Formerly SFIRMA) was established on October 1, 1987, with eight members. Since that time, the Public Risk Management of Florida (PRM) has grown to 49 members. PRM still maintains those same objectives, meeting each of them with every new policy term. We believe that PRM’s continued success and prosperity is largely attributable to the benefits received by its members.
Ross Furry
Executive Director
Public Risk Management
3434 Hancock Bridge Pkwy, Suite 203
Fort Myers, FL 33903
Toll-Free 1-800-367-1705
(239) 656-4666
www.prm-fl.com
BENEFITS
1. INSURANCE COVERAGES
The PRM coverages are designed to meet the needs of the Public Entity. The basic program has been in place for almost twenty (20) years. The coverages are vastly superior to those that are available in the market place.
2. COST EFFECTIVE
The PRM program is cost effective for the following reasons:
a. The assumption of risks at the low or known level, thus the need to purchase less insurance.
b. Risk Selection - PRM has a specific territory that we feel offers a less litigious Claims environment. In addition, PRM selects members that have favorable losses which helps control their insurance costs.
c. Emphasis on safety, loss prevention and claims handling by PRM and its members.
3. STABILITY
Due to sound management by the Board of Directors, Executive Committee, and the Executive Director, PRM is very financially stable.
4. CLAIMS HANDLING
Gallagher Bassett Service, Inc. handles the claims administration. Gallagher Bassett is experienced in handling claims for Florida public entities and Florida Workers’ Compensation. They have eight (8) offices staffed with over 250 employees in the state and process claims for over 150 public entities. The client has input and approval in the claims settlement process and in the selection of defense counsel.
5. GALLAGHER BASSETT INVESTIGATIVE SERVICES
Gallagher Bassett Investigative Services offers a range of investigative tools that, employed separately or in combination, create a formidable first line of defense in such high-risk areas as: insurance fraud; embezzlement, theft and other tangible asset losses; personal and asset protection; due diligence; and pre-employment screening.
6. MANAGED CARE
PRM contracts with a managed care provider, GENEX, to develop an acceptable Managed Care Program. GENEX provides a network of physicians, hospitals, clinics and ancillary providers. GENEX also provides valuable services such as utilization and peer review, employee education, provider bill audit, as well as encouraging early
return to work programs.
7. DRUG FREE AND SAFETY PROGRAM CREDITS
PRM members can receive a Drug Free Workplace credit with an approved Drug-Free Workplace program. This credit is 5% and is applied to the member’s loss fund. Members’ can also receive an approved Safety Credit of 3% that is also applied to the member’s loss fund.
8. LOSS PREVENTION SERVICES
PRM provides on-site loss prevention services to assist members in setting up safety and loss prevention programs, as well as employment practices. Our consultants are very experienced in working with public entities.
9. RISK MANAGEMENT SERVICES
By joining PRM, the members gain the Risk Management Services provided by the Pool. The Executive Director and his staff have over 30 years experience in the Risk Management field. They are able to assist members in all Risk Management activities, including monitoring and reviewing of all contracts, leases, use agreements and certificates of insurance. A Risk Management manual is provided for each member to better participate in the program.
10. EDUCATIONAL SEMINARS
Educational seminars are provided on a timely basis, focusing on the needs of the public entity sector.
11. RISK MANAGEMENT INFORMATION REPORTS
Loss reports are designed to keep members abreast of claim activity on a monthly basis in a timely and accurate manner. The loss reports are broken down by type of claim and
department to help monitor the member’s Risk Management program.
12. SELF GOVERNING BY BOARD
PRM is self-governed by its members. Each member has a representative on the Board
of Directors and it is the Board that sets the policy for PRM. The current Articles of the Association and By-Laws are Attachment #1 to this RFQ.
13. EMPLOYMENT PRACTICES LIABILITY HOT LINE
Pre-Defense Review Service by a recognized law firm for advice and guidelines to prevent possible claims and litigation in labor and employment law issues for Civil Rights Violation(s), Discrimination and Whistle Blower Claims.
14. LAW ENFORCEMENT HOT LINE
Pre-Defense Review Service on a 24-hour basis for law enforcement related critical incident matters. The primary object is to provide police supervisors with immediate loss prevention including the need for on-scene legal advice on any critical incidents. Expert legal counsel on law enforcement matters provides this service.
15. APPRAISALS
All PRM members are required to have a building/contents appraisal completed every five years. This is done through PRM’s designated appraisal service, CBIZ Valuation Group, LLC or by the member’s own appraisal service. The CBIZ appraisal includes a site plan and a color photo of each location. Appraisals are an important tool to assure that the proper limits and coverages are provided on each location.
16. ANCILLARY COVERAGE THROUGH BROKER
Airport or Aircraft Liability
Boiler and Machinery
Bonds
Builders Risk
Excess Liability Limits
Executive Travel Accident
Facilities Use and Special Events Insurance
Fiduciary Liability
Florida Statutory AD&D
Inmate/Community Service Workers Accident Insurance
National Flood Insurance Program
Pollution Liability
Sports Accident
Storage Tanks
ORGANIZATION
PRM is organized under an Interlocal Agreement with each member having a Board Member on the PRM Board of Directors. There is also an Alternate designated by each entity who acts in the stead of the designated member when he/she is not available. PRM is Self Governed with each member having an equal vote. All decisions are made by the Board of Directors.
The PRM By-laws do include an initial two year commitment and a one year notice thereafter. Only new members are subject to this initial two year commitment. This provision has added coverage availability and rate stability to the pool.
The Board of Directors approves all new members. PRM is careful in the selection of new members, which adds to stability of the pool. PRM’s territory is limited geographically which enables PRM to provide the best services and coverage available.
PRM has a full time Executive Director and eight employees to provide its members dedicated service. In addition to assisting members in the claims handling, PRM offers complete Risk Management and Loss Prevention services. PRM provides on-site Loss Prevention services, including assisting members in setting up Safety Committees, Drug Free Workplace Programs, and formulating Employment Practices. PRM provides various seminars for its members throughout the year.
Claims Service is provided by Gallagher Bassett Services to over 150 Public Entities in Florida, and thousands on the national level. Likewise, GENEX provides managed care services for Workers’ Compensation claims.
REINSURANCE
FINANCIAL SECURITY
Public Risk Management’s (PRM) Reinsurance Program consists of Specific Excess insurance.
Specific Excess
Specific Excess Loss Protection is placed to cover large or catastrophic claims excess of $200,000 for Property and Third Party Liability, $500,000 for Workers Compensation and Employers Liability, and $25,000 for Crime. Munich Re-America is the lead re-insurer, providing the first $2,500,000 for Property, $2,000,000 for Third Party Liability, $1,000,000 for Workers Compensation and $100,000 for Crime. Safety National Corporation provides Statutory Coverages above the $1,000,000 for Workers Compensation and up to $2,000,000 for Employers Liability. Various Property Carriers provide Excess Property Insurance.
Protected Self Insurance Program
This Specific Excess Program provides the PRM member’s Financial Security that makes it the Premier Program of its kind. The Self Insured Retention levels of PRM are conservatively low to offer additional Financial Security for it members.
Actuarial Services and Audited CPA Financial Statement
Each year PRM has an Actuarial study conducted on its loss and loss expense reserves. This report is incorporated into an annual Audited CPA Financial Statements. PRM fully complies with GASB10 accounting requirements. PRM does not discount loss reserves or take credit in advance of receiving monies for Second Injury Fund recoveries. Financial Statements for the years ended September 30, 2005 and 2004 are Attachment #2 to this RFQ.
Interest Earnings and Cash Flow
Member contributions earn interest for the benefit of the members. The interest earnings can be used to off-set PRM expenses, used to pay claims, or be returned to the members as participation credits.
Public Risk Management is a Non-Assessable Pool, or Association.
1
LOSS PREVENTION SERVICES
Public Risk Management of Florida (PRM) recognizes the importance of effective workplace safety & loss prevention activities in reducing workplace losses. In response, PRM offers a wide range of loss prevention services for its members at no cost to its members. The following outline briefly describes the major package of services offered through PRM Loss Prevention Services.
PUBLIC RISK MANAGEMENT OF FLORIDA
COVERAGE SUMMARY
PROPERTY
§ Blanket Coverage
§ Special or “All Risk”
§ No Coinsurance/Agreed Amount
§ Flood Sublimit - $40,000,000 Aggregate
(Excess of the National Flood Insurance Program in Flood Zones “A or V”)
§ Replacement Cost: Building, Contents and Mobile Equipment
§ Actual Cash Value – Automobiles
§ $2,000,000 Extra Expense & Business Interruption
§ Increased Cost of Construction - Building Ordinance – Included
§ Property In Transit Included
§ Includes Owned Property in Course of Construction (Owner’s Builders Risk) when the entity is performing 100% of the construction.
§ Electronic Data Processing
§ Valuable papers and Accounts Receivable
§ Inland Marine – Contractors Equipment
§ Employees Personal Property - $1,000/$25,000 Maximum
§ Employees Tools - $50,000, subject to signed list of tools, if more than $5,000 per employee
§ Fine Arts - $100,000
§ Automatic Coverage Remainder of Policy Term
Up to $5,000,000 - No Additional Premium
§ Automatic Coverage for APD – No Mid –Term Adjustments
§ Margin Clause
§ Deductible: $1,000 with a 5% Named Storm Deductible
(This is a summary only. Members should refer to the actual policies for terms and conditions)
PUBLIC RISK MANAGEMENT OF FLORIDA
GENERAL LIABILITY, AUTOMOBILE LIABILITY
POLICE PROFESSIONAL
OCCURRENCE FORM
§ Pay On Behalf and Duty to Defend
§ Limit - $2,000,000
Bodily Injury/Property Damage
Mental Injury
Mental Anguish
Shock
False Arrest
False Imprisonment
Detention
Malicious Prosecution
Invasion of Rights of Privacy
Assault & Battery
§ Blanket Contractual – Hold Harmless Agreements included for
Governmental & Non-Governmental entities as permissible by law
§ Includes Property in Care, Custody, & Control of City or County
§ Herbicide/Pesticide Spraying
§ Host & Liquor Liability
§ EMT/Paramedical covered
§ Police Professional, including Civil Rights
§ Dams/Reservoirs Included
§ Florida No-Fault (Automobile)
§ Automatic Coverage for Automobile Liability – No Mid-Term Adjustments
§ Deductible: NIL
(This is a summary only. Members should refer to the actual policies for terms and conditions.)
PUBLIC RISK MANAGEMENT OF FLORIDA
PUBLIC OFFICIALS ERRORS & OMISSIONS
CLAIMS MADE FORM
§ $2,000,000 Per Occurrence/$8,100,000 Per Member Annual Aggregate Limit
§ Wrongful Acts
§ 1 year Extended Reporting Period – No Charge
§ Violation of Civil Rights
§ Discrimination
§ Sexual Harassment
§ Deductible: NIL
CRIME
§ $100,000 Employee Dishonesty/Faithful Performance Bond, includes
Finance and Assistant Finance Director (Optional Higher Limits)
§ $100,000 Money & Securities, including Computer Fraud
§ Deductible: $1,000
WORKERS’ COMPENSATION
§ Workers’ Compensation - Statutory
§ Employers’ Liability - $2,000,000
§ All States Coverage
§ Jones Act, if applicable.
§ Deductible: NIL
(This is a summary only. Members should refer to the actual policies for terms and conditions.)
PUBLIC RISK MANAGEMENT OF FLORIDA
WHAT IS NOT INCLUDED
PROPERTY and CRIME
Mold / UninsurableTerrorism / Excluded
Property Losses of a Degenerative Nature (Wear, Tear, Deterioration) / Uninsurable
Rust Wet or Dry Rot / Uninsurable
Physical Damage to Aircraft / Hull Coverage Available
Physical Damage to Watercraft over 40 Feet / Available by Endorsement
Employee Tools / Limited to $50,000 Per Occurrence (Higher Limits Available)
Animals / Limited to $5,000 occ./$15,000 annual aggregate separately for Police horses and dogs physically injured in the line of duty only
Land and Land Values / Uninsurable
Streets, Roads, Bridges, Sea Walls, Sewer & Water Lines, Electrical T&D Lines / Separate Inland Marine Coverage Outside PRM
Trees, Shrubs, Bushes / Normally Uninsurable
War, Nuclear / Uninsurable
Boiler & Machinery / Available on PRM Master Policy
Fidelity Required by Law / Individual Public Officials Bonds Available
Inventory Shortage / Uninsurable
New Construction/Additions / Automatic Coverage Limited to $5,000,000
Property in Course of Construction (Builders Risk) performed by a Contractor / Separate Builders Risk Policy Available
The First $1,000 / Maintenance Deductible
5% Named Windstorm Deductible
This is a summary only. Members should refer to the actual document for Terms & Conditions.