Human Resources
Action Item |
DATE: | Tuesday, April 23, 2013 |
TO: | School Board Members |
FROM: | MaryEllen Elia, Superintendent |
SUBJECT / RECOMMENDATIONS | |
Approve the Purchase of Quoted Excess Property Insurance Program. | |
EXECUTIVE SUMMARY | |
Hillsborough County Public Schools purchases insurance coverage for its excess property for loss due to perils such as fire, flood, windstorm, etc. The coverage renews May 1, 2013. Coverage limits will be set at $150,000,000. An excess property insurance history is captured in (Attachment A). The District self-insured 40% of the primary $25,000,000 layer, or $10,000,000 (for named windstorm only) in 2012, and saved $2,082,000 in premium expense, retaining the money in the contingency fund.
For the renewal this year, the market has stabilized and we have elected a $10,000,000 self-insured retention for the primary layer (for named windstorm only), with a loss limit of $150,000,000 (same as previous year). Our deductible for name windstorm-flood remains at 5% with a minimum deductible of $250,000. The deductible for all other perils remains at $100,000. Our insured values have increased $145,655,273 to $4,107,874,111 -- an increase of 3.7%. A list of insurance carriers contacted is included as (Attachment B). The 12-month excess property insurance premium will be $6,859,272 [not inclusive of all Federal/State mandated fees], which is a 3.86% decrease from the total expiring program for the 2013 annual renewal, based on the increased Total Insured Value (TIV) at the expiring rate (Attachment C). First Florida Insurance Broker, the District's Insurance Broker, has recommended coverage in the amount of $150,000,000. The Florida Office of Insurance Regulation will be petitioned for validation that this amount meets the requirements for reasonable insurance coverage of the Stafford Act. The May 1, 2013, 12-month excess property quote is $6,859,272, plus taxes and assessments (Attachment D). |
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STRATEGIC OBJECTIVES | |
• Align the performance management system with the district’s priorities • Demonstrate best financial practices • Demonstrate "best practices" in all aspects of safety including students, employees, visitors, facilities, transportation, and health | |
FINANCIAL IMPACT (Budgeted: Yes) | |
The annual 12-month excess property insurance premium of $6,859,272 in the 2013-2014 General Fund budget reflects a 3.86% decrease from the previous year (2012-2013). | |
EVALUATION | |
Yearly renewal | |
SUBMITTED BY: |
Glen A. Lathers | Daniel J. Valdez | |
Manager of Safety & Risk Management Programs (813) 872-5263 |
Deputy Superintendent (813) 272-4166 |
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A 4.05 | ||
Hillsborough County Public Schools (Florida) * Mtg.#20130423_560 (Board Meeting) * Section A Item# 4.05 |