Orange County NC Website
Browse       Search
6 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: August 1, 2022 <br /> Action Agenda <br /> Item No. 2 <br /> SUBJECT: Ratification of County Manager's Execution of an Insurance Coverage <br /> Agreement with Travelers Insurance and Approval of a Letter of Credit <br /> Agreement <br /> DEPARTMENT: County Attorney's Office <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Executed Insurance Coverage John Roberts, County Attorney, (919) <br /> Agreement with Travelers 245-2318 <br /> Standby Letter of Credit Application and Gary Donaldson, Chief Financial Officer, <br /> Agreement (919) 245-2450 <br /> Letter of Credit— Travelers Alisa Cornetto, Risk Manager, (919) 245- <br /> 2155 <br /> PURPOSE: To ratify the County Manager's execution of an agreement with Travelers Indemnity <br /> Company for Casualty and Workers' Compensation insurance coverage and approve a Letter of <br /> Credit for Travelers Indemnity Company. <br /> BACKGROUND: As part of a comprehensive risk management program, the County purchases <br /> liability, property, and workers compensation insurance. Those programs had been purchased <br /> through the North Carolina Association of County Commissioners' Risk Pools. The County <br /> marketed these programs in 2022 and has moved these programs to Travelers Indemnity <br /> Company (Travelers). <br /> The Travelers coverage offered a premium savings of over $250,000, provided more robust risk <br /> control and claim advocacy, and provided access to a state of the art risk management <br /> information system. The Travelers proposal also included a dedicated, as opposed to shared, <br /> policy limits for each claim category with the same or better coverage limits and deductibles <br /> compared to the County's former provider. Due to the timing of this conversion, the County <br /> Manager signed the agreement to purchase this insurance coverage from Travelers. This <br /> agenda item seeks ratification of the County Manager's signature from the Board of <br /> Commissioners. <br /> In addition, Travelers is requiring the County to secure a $300,000 letter of credit to guarantee <br /> the County is in a position to meet its financial obligations under the terms and conditions of the <br /> policy. This amount is equivalent to the per claim deductible for the Workers Compensation <br />