Title: IN4 COMMERCIAL CRIME INSURANCE

Recommendation:
I recommend the School Board purchase the Commercial Crime Insurance policy effective August 7, 2007 through August 7, 2008 from The Hartford Insurance Group, for an annual premium of  $37,091.

Description:

· The District purchases Commercial Crime Insurance to protect itself from the theft of cash and securities etc. (not personal property) by employees or individuals with whom we conduct business.  The policy also satisfies the requirement of Florida State Statute 1010.07, to ensure that each employee with responsibility for handling/expending funds be appropriately bonded or insured.

The $37,091 renewal premium is $244 higher then the expiring premium.  However the new premium includes the Florida Catastrophe Surcharge of $367.  Our Broker contacted several other carriers which resulted in four declining to quote due to the District's size, two quoted at higher rates and one other no longer writes this line of business.

· This policy protects the District from employee thefts of cash and securities with a limit up to $5,000,000 per occurrence with a $100,000 deductible.  It also provides policy limits of $100,000 with a $1,000 deductible for thefts by individuals with whom we do business.

· Additionally, the policy covers the School District for Faithful Performance of Duty for $1,000,000 with a $100,000 deductible.

· This insurance also covers losses from Forgery/Alteration ($1,000,000 limit/$10,000 deductible) and Disappearance/Destruction ($100,000 limit/$1,000 deductible) caused by individuals with whom we do business.

Financial Impact:
The financial impact to the District for this coverage is $37,091. The source of funds is the General Funds budget.

For Additional Information, contact:
Joseph M. Moore (moorej@palmbeach.k12.fl.us) \Dianne L. Howard

Attachments (list):
Q&AIN4.doc