Title
Human Resources Department, Risk Management Division, recommending the Board:
1) Approve the County’s insurance renewal of the County Service Area 2 and 9 Special Liability Insurance Program (SLIP) for an amount of $27,675.28, with payment covering a period retroactive to September 29, 2019, through September 29, 2020; and
2) Authorize the Human Resources Department, Risk Management Division, to sign and approve all documents required to secure continued SLIP insurance coverage for Fiscal Year 2019-20.
FUNDING: Internal Service Fund.
Body
DISCUSSION/BACKGROUND
The County faces a complex array of risks that can result in severe or catastrophic loss. Purchasing insurance helps protect the County from catastrophic general liability claims, automobile accidents, and workers' compensation injuries. Additionally, purchasing insurance protects the County from loss due to damage or destruction of County assets. The County procures a variety of insurance policies and programs to mitigate and transfer exposures to catastrophic loss. By securing these risk mitigating and transfer mechanisms, the County is better positioned to protect assets and personnel for the fulfillment of its services, objectives, and Strategic Plan.
The County utilizes its participation in California State Association of Counties - Excess Insurance Authority (CSAC-EIA) in conjunction with professional insurance brokerage services to place a variety of commercial insurance policies to protect the County. While requesting the Board to authorize the Risk Management Division to renew insurance coverage and programs is normally an annual request, it has come to our attention that one was inadvertently omitted.
As such, the Risk Management Division has evaluated each of the insurance programs in terms of potential loss, coverage, self-insured retentions, deductibles, and policy limits, and recommends the renewal purchase of the insurance program described below.
Special Liability Insurance Program - The County purchases insurance for County Service Area 2 and 9 Road Maintenance Zone of Benefit in a Special Liability Insurance Program (SLIP) offered through Alliant. The SLIP program is a unique liability program developed specifically for small public entities and not-for-profit organizations. The estimated premium for FY 2019-20 is $27,675.28, which reflects a $9,505.04 decrease, from FY 2018-19’s total premium of $37,180.32. This program typically renews in September, however, as mentioned above, it was inadvertently left off of the agenda item with the rest of the annual insurance renewals. There will not be any late fees or adverse effect on the policy itself and the vendor has approved a payment on or about January 28, 2020.
ALTERNATIVES
The Board could choose not to renew this policy.
PRIOR BOARD ACTION
The last Board item related to this insurance coverage was approved on July 17, 2018 (Legistar # 18-1036).
OTHER DEPARTMENT/AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION
It is recommended that the Board approve this item.
FINANCIAL IMPACT
Funding for this insurance program is included in the Risk Management Internal Service Fund budget for FY 2019-20, and costs are recouped from County departments through internal charges.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Provide a minute order of the agenda item to the Human Resources Department, Risk Management Division, and the Chief Administrative Office.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Tameka Usher, Director of Human Resources
Robert Schroeder, Risk Manager