TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve Renewal of Property and Casualty, Accidental Dismemberment (AD&D) Insurance With The Gehring Group, Inc., a Brown and Brown, Inc. Company for Fiscal Year 2026-2027 in the Amount of $2,242,019.00.
Recommended Action
Option 1: Approve Renewal of Property and Casualty, Accidental Dismemberment (AD&D) Insurance with The Gehring Group, Inc., a Brown and Brown, Inc. company for Fiscal Year 2026-2027 in the amount of $2,242,019.00.
City Commission Options
Option 1: Approve renewal of Property and Casualty, Accidental Dismemberment (AD&D) Insurance with The Gehring Group, Inc., a Brown and Brown, Inc. company for Fiscal Year 2026-2027 in the budgeted amount $2,242,019.00.
• Pros: The renewal provides stability by maintaining the City’s existing insurance coverage and ensuring consistent protection for the organization. It also allows the City to continue coverage within the approved budget.
• Cons: Failure to approve the renewal could result in the City not having secured and continued Property and Casualty insurance coverage, potentially leaving the City exposed to increased financial and operational risk.
Option 2: Deny renewal of Property and Casualty, Accidental Dismemberment (AD&D) Insurance with The Gehring Group, Inc., a Brown and Brown, Inc. company for Fiscal Year 2026-2027 in the amount of $2,242,019.00.
• Pros: Denial of the renewal would avoid committing the budgeted $2,242,019.00 for the proposed Property and Casualty and Accidental Dismemberment (AD&D) insurance coverage for Fiscal Year 2026-2027.
• Cons: Denial of the renewal would leave the City without secured and continued Property and Casualty and AD&D insurance coverage, significantly increasing the City’s exposure to financial and operational risks. The City’s insurance broker has already conducted the necessary market research and analysis, and failure to approve the renewal could create a gap in coverage and leave the City exposed to potentially substantial losses.
Background Information
The Gehring Group, Inc., a Brown & Brown, Inc. company, provides the City with Insurance Broker Services for Property & Casualty Insurance and Risk Management Consulting. As the City’s selected insurance broker, The Gehring Group has conducted the insurance marketing, analysis, and negotiations for the City’s Property, Casualty, and Workers’ Compensation insurance programs.
For Fiscal Year 2026-2027, The Gehring Group negotiated with the City’s incumbent insurance carriers, resulting in minimal changes to the overall scope of coverage. Based on current insurance market conditions and adjustments to the City’s insured property schedule, including the removal of properties that have already been demolished, the anticipated renewal premium represents an approximate 3.4% reduction from the prior fiscal year.
The proposed renewal premium is based on the City’s current insured assets and exposures and does not include facilities that may be added during Fiscal Year 2026-2027. However, the amount budgeted for insurance coverage is sufficient to accommodate additional facilities and other eligible assets added during the fiscal year.
The renewal of Property & Casualty and Accidental Death & Dismemberment (AD&D) Insurance with The Gehring Group, Inc. for Fiscal Year 2026-2027, as negotiated through The Gehring Group, has been reviewed by the City Attorney and is legally correct as to form.
Strategic Plan Pillar
Good Governance
Financial Impact
In fiscal year 2026-2027, this program is budgeted in account 530-0900-513-45-00 in the amount of $2,242,019.00 contingent upon approval of the Fiscal Year 2027 budget.
Procurement
Property and Causality Insurance Coverage and Risk Management Services was procured through an Insurance Broker pursuant to Chapter 2 - Administration, Article VIII - Procurement, Section 2-405 - Competitive Sealed Request for Process of the Code of the City of North Port, Florida.
Attachments:
1. Property & Casualty Renewal Evaluation
2. Evolution from Everest Disclosure Notice
3. National Fire & Marine Insurance Company Disclosure Notice
4. StarStone Disclosure Notice
5. Nautilus Insurance Company Disclosure Notice
6. AMWINS - AES Property Disclosure Notice
7. Beazley Excess & Surplus Lines Disclosure Notice
8. CNA Property Policy Disclosure Notice
9. SOMPO Disclosure Notice
10. AMWINS Disclosure Notice
11. AMWINS Quote Authorization
12. AMWIMS Fraud Warning Disclosure
13. Westchester Surplus Lines Insurance Company Disclosure Notice
14. AMWINS 2026 NTE Proposal
15. Acord Commercial Insurance Application
16. Preferred Government Insurance Trust Public Entity Application
17. Preferred Government Insurance Trust Proposal Signature Pages
18. Preferred Government Insurance Trust Agreement
19. Preferred Government Insurance Trust Participation Agreement
20. Illinois Insurance Company Disclosure Notice
21. Preferred Government Insurance Trust Quote
22. Procurement Documents
Prepared by: Sandy Knowles, Assistant Director Human Resources and Risk Management
Department Director: Christine McDade, Human Resources Director