Public Officials Liability Insurance

The Commonwealth of Kentucky Finance and Administration Cabinet's Office of Procurement Services, on behalf of the Kentucky Workers' Compensation Funding Commission (KWCFC), issued Request for Bid (RFB) 758 2200000252 to procure Public Officials Liability Insurance coverage on a claims-made basis. The procurement seeks comprehensive liability insurance including Employment Practices Liability Insurance with limits of $1,000,000 per occurrence and $1,000,000 general aggregate, featuring a $25,000 deductible per claim for both public officials and employment practices violations, with full prior acts coverage via a retroactive date provision. The initial contract period runs from December 31, 2021 through December 31, 2022, with options to renew for four additional one-year terms by mutual written agreement, subject to renegotiation of terms and conditions. Qualified bidders must hold an A.M. Best rating of B+ or better, maintain Kentucky Certificate of Authority, comply with Kentucky insurance code Chapter 304, and provide 90-day notice of cancellation or non-renewal. The bid closing date was extended to November 30, 2021 at 1:30 PM Eastern Time, with vendor written questions due by November 12, 2021 at 4:00 PM ET. Electronic submission through the Kentucky eProcurement system is mandatory, with bidders required to pre-register 24-48 hours prior to submission. Award determination will utilize a best value approach with price as the sole measurable criterion valued at 100 points, with the lowest responsive, responsible bidder meeting all minimum requirements selected for award; the bidder submitting the lowest price receives maximum points, with subsequent bidders' scores calculated proportionally based on their quoted premiums.

The procurement includes reciprocal preference provisions for Kentucky resident bidders and qualified bidder set-asides, including Kentucky Correctional Industries (Department of Corrections Division of Prison Industries) receiving preference points equal to 20 percent of maximum available points, while qualified nonprofit agencies for individuals with severe disabilities receiving 15 percent preference. No incumbent vendor was specified in the solicitation documents; however, historical loss run documentation from RSUI Group, Inc. and AIG indicates prior insurance relationships with zero claims activity across multiple policy periods through December 31, 2021. All bidders must submit Revenue Form 10A100 Kentucky Tax Registration Application, Certificate of Authority for foreign entities, required annual and supplemental affidavits certifying compliance with Kentucky campaign finance laws and tax obligations, and EEO forms if applicable. Successful bidders must furnish a binder within 10 days of award but no later than two days prior to the coverage effective date, with the original policy and endorsements due within 45 days of the effective date, and must provide annual loss summaries by September 1 of the subsequent year. A Kentucky Premium Surcharge of 1.8% per KRS 136.392 applies and must be stated separately on quotation forms. Specific award value or budget information was not disclosed in the solicitation; however, interested vendors should contact Debbie Mathews, CPPB, KCPM at (502) 564-8649 or Debbie.Mathews@ky.gov for procurement details and financial information regarding the KWCFC's FY21 Audited Financial Statements, which documented total Special Fund assets of $355.3 million and operating revenues of $63.5 million.