Action Item
|
Human Resources
Action Item |
| DATE: | Tuesday, April 1, 2014 |
| 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 for its property loss due to fire, flood, windstorm, etc. The coverage renews May 1, 2014. Limits will be set at $150,000,000. An excess property insurance history is captured in (Attachment A). We recommend a $10,000,000 self-insured retention for the primary layer (for Named Windstorm Only). Our deductible for named windstorm-flood remains at 5% with a minimum deductible of $250,000. The deductible for all other perils remains at $100,000. Insured values have increased from 2013 by $130,561,185 to $4,238,435,296. A list of insurance carriers contacted is included as (Attachment B). This year’s renewal has an enhanced policy form which includes two key items that provide a substantial benefit to the District: (1) $125mil of increased Storm Surge coverage and (2) an immediate savings of $221,085; which is generated from increasing the Builders’ Risk sublimit to $50mil thereby eliminating the need to purchase Builders’ Risk coverage for new schools/renovations that are over $10mil in value.
The 12-month excess property insurance premium will be $7,024,753 plus all Federal/State mandated fees which is a 0.6% decrease based on the increased TIV at the expiring rate (Attachment C). The District’s Insurance Broker has recommended coverage in the amount of $150,000,000 with the Probable Maximum Loss for a 250 year storm of $496,263,750. The Florida Office of Insurance Regulation will be petitioned for validation this amount meets the requirements for reasonable insurance coverage of the Stafford Act. (Attachment D). |
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| STRATEGIC OBJECTIVES | |
| • 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 $7,024,753 is budgeted in the 2014-2015 General Fund. | |
| EVALUATION | |
| Yearly renewal | |
| SUBMITTED BY: | |
| Glen A. Lathers | Stephanie F. Woodford | |
| Manager of Safety & Risk Management Programs (813) 872-5263 |
Chief Human Resources Officer (813) 272-4166 |
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| A 4.07 | ||
| Hillsborough County Public Schools (Florida) * Mtg.#20140401_630 (Board Meeting) * Section A Item# 4.07 | ||