By Robert Helde
The City of Brooksville requested Public Risk Management of Florida (PRM) to present before the city council on Sept. 16, 2019. PRM is an association of 60 self-insured public entities within Florida, including the City of Brooksville (City). The City and PRM are engaged in a two year fixed rate contract, entering the second year. The City has been a member of PRM, since 2004. As such, the City has earned $510,000 as credit toward the renewal premium. PRM is a subsidiary of World Risk Management (WRM) and as such are able to access resources beyond their size. To be competitive, WRM reviews market options regarding PRM’s selected coverages annually. This is made possible by PRM’s business plan of slow, steady growth. Predictability and remaining relatively small give PRM additional leverage and credibility when negotiating on behalf of its members.
The current assessment from PRM totals up to $53,600,494 in insurable value with $41,764,206 of that being building values. If the damages were to exceed the maximum, the City would still be covered as PRM has blanket coverage. PRM provides the City with $5,000,000 each in auto and general liability. Additionally, PRM provides up to $9,000,000 annually for errors and omissions. In addition to covering property damage, PRM also insures against crime, aviation, pollution, cyber, accident, and storm liabilities. PRM’s latest addition to the list of techniques used to better provide service is 3D mapping of critical buildings. The 3D maps, and related data collected will provide precise information related to reconstruction after any major damage. This will allow a more rapid response from PRM in a disaster scenario.
Some of the discussed benefits of retaining PRM, as presented by Mr. Cooper of WRM, include, having the higher payouts and lower out of pocket costs to the City, superior loss of control services, a long tenured PRM staff & WRM broker team, immediate service response from their broker & staff, and the use of surplus to lower costs to members. Also according to Mr. Cooper, PRM provides drastically better coverage in many categories when compared to its competitors. Additionally, PRM grants each member a representative to vote on their behalf regarding the direction of PRM. Siver, an independent insurance consultant, has previously compared the coverage of PRM to its competitors within Florida on behalf of other member entities. It was found that PRM is able to provide the most competitive price, and broadest coverage. The procedure recommended by Siver, would be to remain with PRM.
As presented on the 16th, PRM offered the most cost effective, comprehensive protection. The recommendation made by Siver and the consensus reached by the City is to accept the major lines of coverage presented through PRM by World Risk Management.