Subject:
Title
Commercial Insurance Program renewal for March 1, 2026-2027, for Property and Casualty risks.
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Recommended Action:
Recommended Action
Approval by the County Administrator of the Commercial Insurance Program renewal for March 1, 2026.
Risk Management is pleased to inform the 2026 insurance marketplace has continued to respond favorably for both Property and Casualty insurance.
Commercial Property:
• Primary (Gallagher) 2025 premium was $4,410,782.00, and 2026 renewal premium is $3,789,411.00, a -14.09% decrease. Coverage ($175M) and Windstorm/Flood ($75M) limits are the same and in line with gross loss expectancies and benchmarks. Added pump/lift stations.
• Highly Protected Solid Waste and Utilities (FM): 2025 premium was $6,136,649.00 and 2026 renewal is $7,300,350.00, a 19% increase for 2026. Coverage limits of $100M per location are the same. Increase in total insured values including rate increase. Resiliency $858,610.00 and membership $1,287,915.00 credits provided.
• National Flood Insurance Program (American Bankers): 2025 premium was $78,006.00 and $2026 premium is projected to increase to $81,906.00, a 5% increase. Coverage limits of $500K are the same.
• Total Commercial Property Insurance: increasing from $10,547,431.00 to $11,089,761.00 (a $542,330 or 5.1% increase) and are well under the current budget (we had anticipated a much larger increase).
Liability Coverage Highlights:
• Question: Active Shooter (New): 2026 premium quote is $55,618.00. We have a new coverage option for this renewal. $1M Limits per Occurrence with $2M General Aggregate. $2.5M for attack in response to Active Shooter and Workplace Violence Incidents with Sheriff, Airport and Judicial exposures. Coverage includes Liability, Business Interruption, Third Party Liability and Crisis Management and Expense including Medical/Funeral, Additional Security Measures, Public Relations and Counseling. Active Shooter is being considered due to current environment and open carry law.
• Cyber liability: The 2025 premium was $290,793.00, and the 2026 renewal premium is $265,000.00, a -8.87% decrease. No change in coverage of $15M which is in line with benchmarks and revenue of County.
• Workers Comp Excess: 2025 premium was $395,248.00, and 2026 renewal premium is $454,535.00, a 15% increase. No changes in coverage limits which are Statutory with $2M for Employers Liability. Catastrophic claim remains open with future double-digit increases expected.
• Public Entity Liability & Excess: 2025 premium was $1,534,004.00, and 2026 renewal premium is $1,556,400.00, a 1.46% increase. No change in coverage limits of $10M, which are in line with benchmarks and our primary General Liability coverage.
• Jail Healthcare and Miscellaneous Professional: 2025 premium was $498,342.00, and the 2026 renewal premium is $543,193.00, a 9% increase. No change in coverage limits of $5M. Marketplace is very limited due to jail healthcare exposure.
• Airport Liability: 2025 premium was $102,340.00, and 2026 renewal premium is $105,052.00, a 2.65% increase. No changes to coverage limits of $100,000,000.00, which are in line with benchmarks and Airport revenue and operation.
• Aircraft Hull/Liability: 2025 premium was $182,222.00, and 2026 renewal premium is $200,444.00, a 10% increase. No change to coverage limits of $25,000,000.00, which are in line with exposure.
• Traffic Maintenance General Liability: 2025 premium was $63,753, and 2026 renewal premium is $64,129.00, a .59% increase. Coverage limits of $1M remain the same and number of intersection lights increased due to additional contract with Dunedin.
• Trail and Tradeshow Liability: 2025 premium was $220,739.00, and 2026 renewal premium is $239,700.00, an 8.59% increase. No change to current limits of $26M due to contract with Duke for construction on the trail, which is expected to end in 2027.
• Pollution Liability: Above ground fuel tanks. 2025 premium was $107,665.00, and 2026 renewal premium is $110,766.00, a 2.88% increase. No change in coverage limits of $6M, which are in line with County exposure.
• Terrorism: 2025 premium was $80,970.00, and 2026 renewal premium is $85,018.00, a 5% increase for 2026. Coverage limits of $100M remained the same and are in line with Property values and overall exposure.
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Total Policy Premium:
• Total insurance cost for 2026 is $14,918,952.00*, including Active Shooter coverage, an increase of 5.18% over expiring.
• Total insurance cost for 2026 is $14,863,334.00, without Active Shooter coverage, an increase of 4.79% over expiring.
• This is sufficiently budgeted in the FY26 Adopted Budget. Funding for expenditures will be derived from the Risk Financing Fund.
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Strategic Priorities:
Resilient Infrastructure and Environment
1.5 Strengthen resilience and adaptation.
Smart Service delivery
4.3 Improve efficiency of service delivery through technology.
Summary:
Insurance renewal invoices are for the purchase of Commercial Insurance for Property and Casualty risks. The insurance covers County-owned property and various areas of Liability Insurance for the Board of County Commissioners (Board) and the Appointing Authorities, including the Sheriff. The Clerk of the Circuit Court does not participate in the County’s Workers Compensation insurance policy. Commercial Insurance coverage is provided by both Arthur J Gallagher and FM, requiring payment of policy premiums within 30 days of binding coverage to prevent cancellation.
Background/Explanation:
On March 18, 2008, the Board delegated authority to the County Administrator, or their designee, to execute forms, applications, and documents necessary to continue coverage for each renewal term due to the limited time to bind insurance premiums, typically within 30 days of receiving renewal pricing. At that time, the Board also delegated authority to the County Administrator or their designee to sign all insurance invoices for future insurance premiums and renewal premiums. Each year, Risk Management includes a summary of commercial insurance coverages renewed for the upcoming year.
Fiscal Impact:
The total FY26 budget for insurance premiums is $17,600,000.00. The projected annual cost for 2026 is $14,918,952.00, 15.23% under budget.
The Office of Management and Budget has sufficiently budgeted for this item in the FY26 Adopted Budget in the amount of $17.6M. The budget anticipated higher insurance costs in FY26 due to impact from hurricanes and other claims and reduced credits from FM Global. This lower premium is expected to generate $2.7M in savings.
Funding for expenses will be derived from the Risk Financing Fund.
Delegated Authority:
Authority for the County Administrator to accept the commercial insurance coverages and approve the insurance premium invoices was granted by the Board on March 18, 2008, per attached.
Staff Member Responsible:
Valerie Edmons, Insurance Manager, Risk Mgmt, Office of Management & Budget
Keith Bentley, Director, Risk Management, Office of Management & Budget
Chris Rose, Director, Office of Management & Budget
Partners:
N/A
Attachments:
Premium summary for 2026
Comparison of Insurance Coverages and Premiums for 2026
Delegated authority dated March 18, 2008