Human Resources Action Item

DATE:	Tuesday, April 5, 2011
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 purchase insurance coverage for its excess property for loss due to perils such as fire, flood, windstorm, etc.  The coverage renews May 1, 2011.  Coverage limits will be set at $200,000,000.  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.  The deductible for all other perils remains at $100,000.  Our insured values have increased from June 1, 2010, by $140,668,392 to $3,377,515,154.  A list of insurance carriers contacted is included (Attachment B).  The 12-month excess property insurance premium will be $5,488,800 (not inclusive of all Federal/State mandated fees), which is a 10.05% decrease from the total expiring annualized program for the 2011 annual renewal (Attachment C).  (Note -- The 2010 policy was an 11-month renewal.)  First Florida Insurance Broker, the District's Insurance Broker, has recommended coverage in the amount of $200,000,000 with the Probable Maximum Loss for a 250 year storm of $204,041,774.  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, 2011, 12-month excess property quote is for $5,488,880, plus taxes and assessments (Attachment D).
STRATEGIC OBJECTIVES
• 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 annual 12-month excess property insurance premium of $5,488,800 in the 2011-2012 General Fund budget reflects a 1.87% ($104,830) decrease  from the 2010-2011 budget.
EVALUATION
Yearly renewal.
SUBMITTED BY:

Glen A. Lathers		Daniel J. Valdez
Manager of Safety and Risk Management Programs (813) 872-5263		Deputy Superintendent (813) 272-4166
		A 3.04
Hillsborough County Public Schools (Florida) * Mtg.#20110405_457 (Board Meeting) * Section A Item# 3.04