Hillsborough County Public Schools Human Resources
Action Item

DATE: Tuesday, April 21, 2009
TO: School Board Members
FROM: MaryEllen Elia, Superintendent

SUBJECT / RECOMMENDATIONS

Approve the Purchase of the Quoted Excess Property Insurance Policy.

EXECUTIVE SUMMARY

Hillsborough County Public Schools purchases insurance coverage for excess property for loss due to perils such as fire, flood, windstorm, etc. The coverage renews May 1, 2009. Coverage limits will be set at $250,000,000 with wind limits at $150,000,000 ($100,000,000 less than last year due to insurance market capacity limitations). An excess property insurance history is captured in (Attachment A). Our deductible for named windstorm-flood remains at 5% with a minimum deductible of $250,000 (reduced from $1,000,000 last year). The deductible for all other perils remains at $100,000. Key insurance renewal policy enhancements are outlined in (Attachment B). Our insured values have increased by $118,729,410 to $3,164,374,759. A list of insurance carriers contacted is included as (Attachment C). Pending finalization of pricing and property structure, the district will extend the current program for one month to June 1, 2009, for an additional premium of $500,000 (plus fees) then purchase a 12-month term June 1, 2009 to June 1, 2010, for an annual premium not to exceed $5,700,000 (plus fees) for a total 13-month expenditure not to exceed $6,200,000 (plus fees). The Florida Hurricane Catastrophe Fund Fee is 1% of premium as well as 1.4% Citizen’s Emergency Assessment Fee. First Florida, the district’s insurance broker, has recommended the Lexington PEPIP Form No. 4 program with coverage in the amount of $250,000,000 with $150,000,000 wind limits with the Probable Maximum Loss for a 500 year storm of $131,815,661. 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 proposed 13-month term (one-month extension, plus 12-month term) with not to exceed premium of $6,200,000 (plus fees). Final program structure and costs will be provided as an information item when the excess property insurance is completed.

ANNUAL DISTRICT GOAL(S) AND CRITICAL SUCCESS FACTOR(S)

* Align financial resources to support the district’s strategic goals, * 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 excess property insurance not to exceed premium of $6,200,000 plus fees, is budgeted in the 2009-2010 General Fund budget.

EVALUATION

Yearly renewal.

SUBMITTED BY:

Glen A. Lathers
Manager of Safety and Risk Management
(813) 872-5263
Daniel J. Valdez
Deputy Superintendent
(813) 272-4166
A 3.04R
Hillsborough County Public Schools (Florida) * Mtg.#20090421_348 * Section A Item# 3.04R