TITLE
Title
APPROVE FY 2026-27 PROPERTY, EXCESS WORKERS' COMPENSATION AND OTHER INSURANCE COVERAGE
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SPONSOR
Sponsor
Toy Beeninga, Deputy County Manager
Carolyn Thompson, County Attorney
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BACKGROUND
Background
Arthur J. Gallagher Risk Management Services LLC (Gallagher), on behalf of Guilford County, competitively marketed property insurance coverage for FY2026-2027 (FY27). Excess workers’ compensation insurance coverage was not marketed as we accepted a 2 year rate lock last year when the move to Midwest Employers Casualty Company from Safety National Casualty Corporation occurred and property insurance has been recommended by Gallagher to remain with GovPro/Hiscox/Liberty Mutual etal for July 1, 2026, through June 30, 2027. The County’s excess workers’ compensation insurance premium for FY27 will decrease by $5,272 from $249,868 to $244,596 which is a decrease of 2.11%.
The County’s property insurance premium for FY26 will increase by $135,023 from $521,183 to $656,206 which is an increase of 26%. GovPro/Hiscox/Liberty Mutual increased their pricing based prior claims and market rates. This was still the lowest received quote.
The total proposed premium cost for both policies for FY27 is $900,802 compared to our total premium cost of $771,051 for FY26. This represents an overall premium increase of $129,751 or 16.8%. No additional County funds will be required, pending the adoption of the FY27 budget, as all premiums and adjustments have been planned for in the FY27 budget. Gallagher binds coverage and the County reimburses Gallagher for the insurance premiums paid by them to bind coverage.
The County also contracts with Arthur J. Gallagher Risk Management Services for Crime, Cyber, Environmental - Storage Tanks, and Employment Practices at a cost of $152,093.
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BUDGET IMPACT
Budget Impact
FUNDS COMMENSURATE WITH ADOPTION OF THE FY 2026-27 BUDGET
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REQUESTED ACTION
Requested Action
Authorize County staff to take all necessary actions to execute agreements with Arthur J. Gallagher Risk Management Services LLC for insurance coverage for Guilford County beginning July 1, 2026 through June 30, 2027 at a not expected to exceed cost of $1,052,895 for insurance premiums paid binding coverage.
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