Title
A Resolution of the City of Coral Gables authorizing the City Manager, or Designee, to negotiate and execute a contract with Arthur J. Gallagher Risk Management Services, Inc. for the casualty lines of insurance coverage for three (3) years with two (2) additional two (2) year renewal options, with the first year premium and service fee not to exceed $1,097,294 for the period of May 1, 2009 to May 1, 2010. (Recommended through Competitive Selection) (Funding Source: Insurance Fund)
Body
The City entered into a three year contract with a three year renewal option that began on May 1st, 2003 for Risk Management and Insurance Brokerage Services with Arthur J. Gallagher Risk Management Services, Inc. and AON Risk Services, Inc. of Florida after an RFP process. In October of 2008, the City advertised RFP 2008.10.31 - Risk Management & Insurance Brokerage Services for the Property and Casualty Lines of Insurance Coverage. This bid was protested and a decision was made to start the process over and in January of 2009, the City advertised RFP 2009.01.05 - Risk Management & Insurance Brokerage Services for the Property and Casualty Lines of Insurance Coverage. This RFP created a controlled platform for the City to obtain competitive bids on insurance broker service fees and competitive quotations on insurance policies (net of commissions) through a market assignment process.
The end result of this process is the Insurance Advisory Committee making a recommendation to name Arthur J. Gallagher Risk Management Services, Inc. as the Casualty Insurance Broker. The following is a breakdown of the policy premiums and broker fee represented by this resolution:
Description of the Insurance Policy or Fee |
Premiums/Fees for the May 1, 2009 to May 1, 2010 |
% Difference |
Premiums/Fees for the May 1, 2008 to May 1, 2009 |
Public Entity Package |
$ 713,858 |
-3.2% |
$737,320 |
Excess Liability |
$ 103,168 |
-2.6% |
$105,890 |
Excess Workers Compensation |
$ 155,268 |
-59.8% |
$386,775 |
Insurance Brokerage Fee |
$ 125,000 |
-7.4% |
$135,000 |
Total Premiums and Fees |
$1,097,294 |
-19.6% |
$1,364,985 |
The Insurance Advisory Committee has also recommended that the Commission authorize Arthur J. Gallagher to approach Lloyds of London (BRIT Syndicate 2987) to obtain a quotation; and should this quotation offer the same or better terms and conditions as the PESLIC quotation, authorize City staff to bind this quotation, if it is determined to be in the best interest of the City.
The savings year over year is 19.6% ($267,691), mainly reflective of a 59.8% reduction ($231,507) in the excess workers' compensation premium.