REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF IN-HOME SUPPORTIVE SERVICES PUBLIC AUTHORITY
AND RECORD OF ACTION
April 8, 2025
FROM
ROXANNE J. YOUNG, Executive Director, In-Home Supportive Services Public Authority
SUBJECT
Title
Renewal of General Liability, Optional Excess Liability, and Cyber Liability Programs
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of the In-Home Supportive Services Public Authority:
1. Approve the renewal of the In-Home Supportive Services Public Authority’s various Liability Insurance programs with Public Risk Innovation, Solutions, and Management with the following coverages, for an estimated total premium of $206,800, for the one-year period of July 1, 2025 through June 30, 2026:
a. General Liability Insurance Program with a coverage limit of $25,000,000, for a premium cost of approximately $167,000.
b. Optional Excess Liability Insurance Program with a coverage limit of $10,000,000, for a premium cost of approximately $30,000.
c. Cyber Liability Insurance Program with a coverage limit of $25,000,000, for a premium cost of approximately $9,800.
2. Authorize the Executive Director of In-Home Supportive Services Public Authority to execute the binding order with Public Risk Innovation, Solutions, and Management on behalf of the In-Home Supportive Services Public Authority, subject to County Counsel review.
(Presenter: Roxanne J. Young, Executive Director, 891-9102)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The approximate premium of $206,800 is funded by State (50%) and Federal (50%) grants. Adequate appropriation and revenue will be included in the In-Home Supportive Services Public Authority (IHSS PA) 2025-26 Recommended Budget.
BACKGROUND INFORMATION
In 2002, San Bernardino County (County) established the IHSS PA to serve elderly, blind or disabled individuals who are not able to remain in their homes without assistance. On January 8, 2002 (Item No. 58), the Board of Supervisors (Board) adopted Ordinance No. 3842 establishing the IHSS PA to act as the employer of record for San Bernardino In-Home Supportive Services providers pursuant to Welfare and Institutions Code section 12301.6, subdivision (c)(1) and to perform other IHSS PA functions as required by Welfare and Institutions Code section 12301.6, subdivision (e) and not retained by County. Pursuant to Ordinance No. 3842, IHSS PA is an entity separate from the County. It is governed by a Board of Directors comprised of members of the Board and is a corporate public body exercising public and essential governmental functions with all powers necessary and convenient to carry out the delivery of in-home supportive services. Additionally, the IHSS PA is charged by the state legislature with providing mandated services to include the following: a registry of potential care providers, background and qualification investigations of potential care providers, referrals to IHSS PA consumers of potential care providers from the registry, training for both IHSS PA care providers and consumers, and performance of other functions related to the delivery of in-home supportive services as designated by the governing board.
Public Risk Innovation, Solutions, and Management (PRISM) is a member-directed insurance risk-sharing pool. It has developed effective risk management solutions to help public entities proactively control losses and prepare for different exposures. There are over 2,000 public entities that participate in any number of coverage programs, some of which are large Joint Powers Authorities (JPAs) that have their own memberships, such as PRISM. Other public entities include cities, counties, JPAs, Special Districts, Educational Organizations, Fire Districts, Housing Authorities, and others.
The Department of Risk Management administers IHSS PA insurance programs for workers’ compensation claims. IHSS PA procures general liability insurance, optional excess liability insurance, and cyber insurance policies for additional protection through PRISM. These insurance policies have previously been procured with Purchase Orders issued within the authority of the Purchasing Agent.
On May 7, 2024 (Item No. 55), the Board approved the renewal of the General Liability, Optional Excess Liability, and Cyber Liability Insurance Programs with PRISM for a total cost of $163,000, which represents the entire cost of estimated premiums due. A subsequent reduction of actuarial assessment by PRISM resulted in a lower total cost of $139,629.
Approval of the recommended renewals of general liability, optional excess liability, and cyber liability insurance programs will provide a new coverage period of July 1, 2025 through June 30, 2026, with an approximate total premium cost of $206,800, which is $67,171, or approximately 48% increase over last year’s premium cost of $139,629. The increase is due to various factors, including a challenging insurance market for the public sector as a result of insurers leaving the market and an increase in size and frequency of claims.
A final premium amount will not be available until closer to the actual renewal date of July 1, 2025. This is due to the complexity of the negotiations PRISM engages in with multiple insurance carriers on behalf of the County and other insurance pool members to develop the IHSS PA liability insurance coverages. Approval of Recommendation No. 2 will authorize the Executive Director of IHSS PA to execute the binding order on behalf of IHSS PA, ensuring a timely renewal process with no lapse in coverage.
PROCUREMENT
As a member of the JPA, the County is eligible to purchase general liability insurance through the PRISM shared limits options. This eliminates the need for a County facilitated procurement process, resulting in cost savings to the County through volume discounts and shielding from insurance market swings, which minimizes risk and uncertainty at renewal time.
The San Bernardino County Purchasing Department, which provides purchasing services to IHSS PA pursuant to an interagency agreement between San Bernardino County and IHSS PA, concurs with the noncompetitive justification for payment of the annual premiums to renew the General Liability, Optional Excess Liability, and Cyber Insurance Programs with PRISM.
REVIEW BY OTHERS
This item has been reviewed by Human Services Contracts (Patty Steven, Contracts Manager, 388-0241) on March 4, 2025; County Counsel (Jacqueline Carey-Wilson, Deputy County Counsel, 387-5455) on March 20, 2025; Risk Management (Greg Ustaszewski, Staff Analyst II, 386-8621) on March 18, 2025; Finance (Allegra Pajot, Administrative Analyst, 388-0218) on March 20, 2025; and County Finance and Administration (Cheryl Adams, Deputy Executive Officer, 388-0332) on March 20, 2025.