TITLE
title
APPROVE AND RATIFY FY2024-2025 PROPERTY AND EXCESS WORKERS’ COMPENSATION INSURANCE
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SPONSOR
sponsor
Jason Jones, Assistant County Manager for Quality Government
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BACKGROUND
background
Arthur J. Gallagher Risk Management Services LLC (Gallagher), on behalf of Guilford County, competitively marketed both excess workers’ compensation and property insurance coverages for FY2024-2025 (FY25). Excess workers’ compensation insurance coverage has been recommended by Gallagher to continue with Safety National Casualty Corporation and property insurance has been recommended by Gallagher to transition to Travelers Indemnity Company from Liberty Mutual Fire Insurance Company for July 1, 2024, through June 30, 2025.
The County’s excess workers’ compensation insurance premium for FY25 will decrease by $34,313 from $361,404 to $327,091 which is a decrease of 9%. The County’s property insurance premium for FY25 will increase by $176,084 from $600,430 to $776,514 which is an increase of 29%. Included in the property insurance premium increase is a significant enhancement to the standard coverages held in the prior fiscal year.
The total premium cost for both policies is $1,103,605. No additional County funds are required as all premiums and adjustments have been planned for in the Board’s FY25 Adopted Budget Ordinance. Gallagher binds coverage and the County reimburses Gallagher for the insurance premiums paid by them to bind coverage.
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BUDGET IMPACT
budget impact
NO ADDITIONAL COUNTY FUNDS REQUIRED
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REQUESTED ACTION
requested action
Authorize County staff to take all necessary actions to execute and ratify agreements with Arthur J. Gallagher Risk Management Services LLC to bind both excess workers’ compensation and property insurance coverages for Guilford County for July 1, 2024, through June 30, 2025, and to reimburse Arthur J. Gallagher Risk Management Services LLC in an amount not to exceed $1,103,605 for insurance premiums paid b...
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