Scope_of_Services-Property_Casualty_Broker_2026.pdf

PROPERTY AND CASUALTY INSURANCE BROKERAGE SERVICES

I. PURPOSE

The purpose of this request is to retain property and casualty insurance brokerage services on a guaranteed fee basis to provide the City the services described below.

The broker selected will have the exclusive right to provide insurance services to the City for the types of coverage included in the Proposal and any new property and casualty insurance sought by the City; and will be designated as agent of record for the City for that coverage.

The City has renewed some of its insurance policies with its existing broker. The selected broker will be assigned to replace existing coverage as it expires at the request of the City. The selected broker will also procure new insurance, at the request of the City, as exposures are identified and the City determines to transfer the risk by insurance.

The maximum duration of the contract awarded pursuant to this RFP will be three years, with an option to renew in favor of the City for one additional three-year period.

II. SCOPE OF SERVICES

Design a property and casualty risk financing program for the City which will streamline risk-financing applications as much as possible, and utilize cost-effective self-insured retentions, insurance deductibles, and other risk financing techniques. Respondent must demonstrate the ability to place all insurance outlined in Exhibit A or will be deemed non-responsive. An overview of current insurance in place is outlined below.

Commercial property insurance including difference in conditions coverage for City properties with a total insurable value of over $375,000,000. The City also has an equipment breakdown insurance policy with a $100,000,000 limit of liability.

The City has excess liability policies in the amount of $2,500,000 per occurrence and $5,000,000 annual aggregate with various self-insured retentions for commercial general liability, commercial automobile, public officials and employment practices liability, and police professional liability. The City also has an excess workers’ compensation policy with statutory coverage and $5,000,000 in employer’s liability coverage.

The City maintains other miscellaneous property and casualty policies including but not limited to inland marine insurance, flood insurance, crime/employee dishonesty insurance, and special events liability, liquor liability, storage tank liability, and medical malpractice insurance with various deductibles and limits of coverage.

A schedule of the insurance the City currently maintains with its property and casualty broker’s assistance can be found in Exhibit A.

The selected broker(s) must be able to provide insurance placement and related risk management consulting services to the City including the following:

A. Insurance Placement and Marketing Services

1. Maintain contact with insurance markets which are interested, available, and qualified to provide products and services to the City and identify opportunities to improve the products or services or reduce costs.

2. Provide the City with a schedule and timetable for broker activities.

3. Prepare underwriting submissions to risk financing organizations and provide a copy of its submission(s) to the City. The City will assist the broker by issuing general specifications, and by gathering and preparing information for the broker;

however the ultimate responsibility for preparation of underwriting submissions and all related expenses will be borne by the broker.

4. Provide a strategy for market coverages. Provide a prioritized list of risk financing organizations to be approached on behalf of the City, and a statement of why this market is able to meet the City’s needs. Include an evaluation of the financial stability of the proposed insurer to assume the financial risk that is proposed to be undertaken.

5. Negotiate coverages, policy language, services, limits, retentions, and price on behalf of the City with the proposed insurer. Provide expertise in negotiations with insurers to obtain acceptable policy terms and conditions and in the preparation of manuscript forms and endorsements.

6. Comply with the City’s purchasing codes and procedures for obtaining insurance coverages.

7. Begin renewal activities for all insurance coverage in future years a minimum of 60 days before policy expiration dates by requesting current underwriting data from the City. Receive insurance proposals and perform analyses to determine which proposals offer the best combination of cost, services, and coverage, at least 30 days prior to the expiration of the policy.

B. Policy Review and Coverage Verification

1. Ensure that all insurance policies provided by insurers conform to the requested coverage and these policies are provided to the City within 30 days after inception of coverage.

2. Maintain a monthly status report, available to the City, identifying all outstanding insurance issues and provide a time line for resolving these outstanding issues.

3. Issue insurance binders to the City prior to inception of any insurance coverage and until policy is issued.

4. Review and evaluate new and renewal policy endorsements or related documents affecting coverage, services, or cost.

5. Continuously monitor the financial condition of insurers providing insurance coverage to the City, including their ability to pay claims promptly and advise the City whenever any insurer is downgraded by any rating agency.

6. Prepare analysis and recommendations of coverage being offered, including financial strength of insurer, limits, retentions, coverages, exclusions, and pricing.

7. Verify all policy terms, conditions, and premium calculations before delivering policies and/or endorsements to the City.

8. Verify all requested changes and premium changes, including any subsequent audits.

C. Loss Prevention

Represent the position of the City concerning recommendations made by insurance companies and, if requested, conduct research to develop documentation to support the City’s position. Consult with the City staff as appropriate.

D. Claims Settlement

1. Assist with claim documentation process and coverage interpretation to ensure the

City receives maximum loss recoveries in a timely manner.

2. Assist the City in obtaining all payments, including partial payments, for losses from insurance companies.

3. Assist in resolving insurance coverage disputes with insurance companies.

E. Risk Management Consulting

1. Assist the City in preparing annual exposure updates to ensure compliance with terms and conditions of the various insurance coverages.

2. Monitor and evaluate the City’s loss exposures for any operational changes that may have a significant impact on its risk management program.

3. Serve as a resource to the City for information on coverage issues, policy interpretation, claim issues, potential exposures, and other issues.

4. The Broker must be available at all times upon reasonable requests to meet with the City Commission, City Manager, Finance Director, staff, and other City consultants in order to fulfill the Broker’s responsibilities.

III. BACKGROUND

The City of Daytona Beach, Florida is an incorporated municipality of the State of Florida located within the County of Volusia. The City, which currently encompasses 67 square miles, is located on the central east coast of the State of Florida, 89 miles south of Jacksonville and 50 miles northeast of Orlando.

The City was incorporated on July 26, 1876, and operates under a Commission-Manager form of government and is a full service City empowered to levy a property tax on both real and personal property. The City provides general government, public safety, public works, planning, leisure, community development, and cultural services to its 85,000 residents. To provide these services, the City operates six enterprise activities: a water and sewer system, a solid waste system, a marina (managed by third-party), a municipal golf course, a stormwater system, and a tennis center.

Policy-making and legislative authority are vested in the City Commission consisting of the mayor, elected citywide, and six commissioners elected by district. To effectively manage its financial resources, The City of Daytona Beach prepares and adopts an annual operating budget and a five-year capital program that encompasses all funds as necessary.

Local economy:. The economy of the Daytona Beach area is heavily tourist-oriented and currently draws more than 8.5 million tourists annually for family vacations or to attend any of the seven major special events held in the City throughout the year. The City is rich in outdoor amenities providing recreation on twenty-three miles of accessible Atlantic Ocean beach. Approximately 85% of those visiting these major special events and the numerous smaller events arrive by car or motorcycle.

Risk Management:. The City has a risk management program that includes a self-insured program for workers’ compensation and liability exposure, and a purchased insurance program for excess liability and workers’ compensation, all risk property, employee surety and other selected potential risk exposures where it is felt appropriate to limit any City liability. The program is designed to evaluate the City’s exposure and seek price quotes on various coverage levels and deductibles in the insurance market place and determine the level of risk the City can reasonably expect to cover.

IV. COMPENSATION AND COMMISSIONS

A. Compensation: The sole compensation paid to the broker selected will be payment of Broker Service Fees. There will be no reimbursement for out-of-pocket expenses or travel costs unless the City expressly agrees otherwise. The proposer should anticipate that the final contract will not provide for such reimbursement except in extraordinary circumstances.

The total Broker Service Fee will be paid as a flat fee. Any proposal that contains proposed fees as a percentage of the City’s cost of insurance obtained through the Broker’s assistance (including commission), or provides for fees on any other basis other than as a flat fee, will be considered non-responsive unless the insurance policy cannot be written net of commission. If a policy cannot be written net of commission, the Respondent should identify such policy(ies) from the list of existing insurance policies and note that in its response with the reason the policy cannot be written net of commission.

The Fees will be subject to Adjustments as provided below.

B. Adjustments: The Fees above will be subject to reduction as follows:

1. Commissions. Any commission payments that the selected broker receives in connection with the procurement of insurance coverage for the City pursuant to the contract, will be credited against the Fees owed under the Contract. For purposes herein, “commissions” do not include any of the following:

(i) Any contingent payments or allowances received by the broker, or the broker’s corporate parent, subsidiaries or affiliated entities, from insurers based on factors which are not client-specific, such as the performance or size of an overall book of business produced with an insurer.

(ii) Any payments or allowances to intermediaries (such as a wholesale insurance broker, managing general agent (MGA), managing general underwriter or reinsurance broker) used by the broker for the placement of the City’s insurance. In addition to providing access to the insurance company, the intermediary may provide the following services: (i) risk placement; (ii) coverage review; (iii) claims liaison services with the insurance company; (iv) policy review; and (v) current market intelligence.

(iii) Interest on premiums paid by the City in the ordinary course of business, from the date received by the broker until the date the premiums are remitted to the insurance company or intermediary.

The Annual Broker Fee will be paid on a quarterly basis, in arrears.

V. ADDITIONAL CONTRACT TERMS

The selected broker will enter into a written contract with the City before commencing service. Among other things, the contract will require the broker to provide proof of insurance and indemnify the City and will establish the conditions under which the contract may be terminated prior to expiration. Attached is a draft contract containing many of the conditions that the City anticipates will apply. The final contract will be negotiated between the successful broker and the City.

VI. MINIMUM QUALIFICATIONS OF INSURANCE BROKERS

The successful proposer must meet the following minimum qualifications and must include sufficient information in its response for the City to verify that the minimum qualifications are met.

1. The proposer and its employees must have all necessary current licenses issued by the State of Florida for procurement of the types of insurance for which they wish to act as brokers for the City.

2. The proposer possesses a minimum of ten years of property and casualty experience and the primary business of the firm shall be the insurance business.

3. The proposer must assign a service team to provide brokerage service to the City, which has at least a marketing account executive and a customer service representative. These individuals must each have at least five years’ experience providing services to cities and/or other governmental entities.

4. Florida Experience – At least one member of the service team, designated in the proposal forms, must have acted as a broker placing property insurance for a Florida property account which has total insurable values at risk in excess of $200 million since 2015.

5. Florida Governmental Experience – At least one member of the service team, designated in the proposal forms, must have acted as a broker placing property insurance for a Florida governmental entity since 2015.

6. The proposer will have expertise and experience in placing and reviewing for accuracy and conformity to specifications and negotiated coverages endorsements and policies similar to the types of insurance coverage currently maintained by the City as identified in Scope of Services and the list in Exhibit A.

7. The Broker shall demonstrate extensive experience providing coverage summaries for all new coverages and updates on changes to existing coverages for the types of insurance coverage currently maintained by the City as identified in Scope of Services.

8. The Broker shall demonstrate extensive experience advising public sector employers in matters related to reinsurance terms and conditions, risk management and indemnification issues, and alternative risk financing techniques.

VII. REQUIRED DOCUMENTATION

The proposal must include the following information:

A. Background information on the proposer’s firm, including the firm size, how long it has been in business, and the types and sizes of accounts and services provided.

B. A description of the firm’s experience as a broker with cities and other government agencies, including whether such agencies are federal, state, or local.

C. The names, addresses, contact persons and phone numbers of Florida cities and other government agencies for which the firm has performed similar work for a period of at least five years; and a description of the relevant services provided for each agency listed.

D. Relevant background information for all members of the Broker’s team who would be involved in providing service to the City. The information must describe their respective roles and primary office location, show their respective staff qualification, training, designations, and pertinent experience. This information will be provided in resume form.

E. A narrative statement generally describing why the City should select the proposer;

including any examples of creative solutions that the firm may have offered similar clients in the past to the types of insurance problems typical of an organization such as the City.

F. The selected Broker(s) will be required to agree to abide by the terms of the agreement included as Attachment A. The Respondent must include a statement in its Proposal that he/she agrees to abide by all the terms of the agreement or provide alternative terms that the respondent would propose to include.

G. A certificate of insurance or describe your firm’s errors and omissions coverage, including carrier, limits and deductibles. (a certificate will be required of the selected broker.)

H. Any other information that may help allow the City to ensure that the proposal meets minimum qualifications established above.

VIII. SELECTION CRITERIA

The criteria used by the City to review responsive proposals is as follows:

A The competence and experience of the proposer in insuring other cities and/or government entities. Weight = 25

B. The breadth and quality of the services which the proposer will be able to provide the City. The Broker must demonstrate its ability to place all insurance coverage types listed in the scope of services. Weight = 25

C. The length of time the proposer has been in business and availability of qualified personnel and facilities. Weight = 15

D. Competitiveness of annual broker fees. Weight = 20

E. Financial Stability/Responsibility- Qualities and indicators will generally include the capitalization of the Broker; the impact of any recent or foreseen mergers or acquisitions; the history of the Broker, the corporate structure, and the number of years the Broker has been in business; and any unique risks associated with the Broker or industry that would potentially threaten its continued existence as a growing concern.

Weight = 15

E. Financial Stability/Responsibility- Qualities and indicators will generally include the capitalization of the Broker; the impact of any recent or foreseen mergers or acquisitions; the history of the Broker, the corporate structure, and the number o...