REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 10, 2025
FROM
VICTOR TORDESILLAS, Deputy Executive Officer, Department of Risk Management
SUBJECT
Title
Renewal of Primary General Liability Insurance for Specified Human Services Departments Through Public Risk Innovation, Solutions, and Management
End
RECOMMENDATION(S)
Recommendation
Approve the renewal of a primary general insurance policy with Public Risk Innovations, Solutions, and Management, including non-standard terms, with a $3,000,000 coverage limit, inclusive of $500,000 self-insurance retention, for a premium cost of approximately $7,274,000, for the one-year period of July 1, 2025, through July 1, 2026, automatically binding for successive one-year terms until terminated by either party for the following specified Human Services Departments:
1. Human Services Administration, including Transitional Assistance, Children and Family Services, and Children’s Network.
2. Department of Aging and Adult Services
3. Department of Child Support Services
4. Preschool Services Department
5. Veterans Affairs Department
(Presenter: Victor Tordesillas, Deputy Executive Officer, 387-4717)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner. Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The total premium, which is estimated to be $7,274,000, is to be paid from the Department of Risk Management’s (DRM) Human Services (HS) liability self-insurance fund (4122) and will be recovered through the Board of Supervisors (Board) approved rates charged to the specified County departments. Sufficient appropriation and revenue will be included in the DRM’s 2025-26 Recommended Budget.
BACKGROUND INFORMATION
DRM administers the County’s self-insurance programs for public liability and workers’ compensation claims and procures excess insurance policies for additional protection. DRM maintains a separate primary general liability policy for the specified HS departments due to the high frequency and severity of claims that may arise from the services they provide. On May 21, 2024 (Item No. 88), the Board approved the renewal of an HS primary general liability insurance program for the one-year period of July 1, 2024, through July 1, 2025, for the total premium cost of approximately $5,800,000.
Approval of the Recommendation will provide a new one-year coverage period from July 1, 2025 through July 1, 2026, with a total renewal premium cost of approximately $7,274,000. This represents an increase of $1,699,504, or 30.49%, over last year’s final premium cost of $5,574,496. The increase is due to various factors, including a challenging insurance market for the public sector due to an increase in the size of claims, and an increase in losses within the pooled insurance group the County participates in.
On March 25, 2014 (Item No. 49), the Board approved a Joint Powers Authority Agreement (JPA) and Memorandum of Understanding (MOU) between the County and the California State Association of Counties-Excess Insurance Authority (CSAC-EIA), which granted eligibility for the County to purchase insurance through CSAC-EIA shared limits program. The MOU remains in effect until the County cancels its membership or until the CSAC-EIA Board of Directors cancels County participation with a majority vote.
On June 28, 2016 (Item No. 68), the Board approved an MOU between the County and the CSAC-EIA, granting the County eligibility to purchase general liability coverage for specified HS departments through the CSAC-EIA shared limits program known as the General Liability I program. The MOU remains in effect until the County cancels its membership or until the CSAC-EIA Board of Directors cancels County participation with a majority vote. In 2020, CSAC-EIA changed its name to Public Risk Innovation, Solutions, and Management (PRISM).
Insurance policies purchased through the JPA include terms that differ from the standard County contract and are non-negotiable. The non-standard terms include the following:
1. The policy automatically binds the County for successive one-year terms unless the County withdraws from the JPA or its membership is cancelled by a majority vote of the PRISM Board of Directors.
• County policies 11-05 and 11-06SP1 do not permit indefinite terms or automatically renewing contracts except for end user license agreements, software/hardware licenses and subscriptions, and master service agreements or unless approved by the Board
• Potential Impact: The County is bound to renew the policies annually unless a notice of withdrawal is submitted in writing to the JPA at least sixty days prior to the end of the policy year.
DRM has consulted with Alliant Insurance Services, Inc., the County’s insurance broker, as well as the department actuary, to explore cost-saving options and it has been recommended that the County renew its HS general liability insurance policy for specified HS departments through PRISM, the insurance carrier that provides current coverage. DRM recommends the renewal of the HS general liability insurance program to protect the County’s financial assets from liability arising from services provided by the specified HS departments. While renewal will automatically bind the County for successive one-year terms, Risk will return to the Board for annual increases to the policy premium.
A final premium amount will not be available until closer to the actual renewal date 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 HS general liability insurance coverage.
PROCUREMENT
As a member of the JPA, the County is eligible to purchase general liability insurance through the PRISM shared limits options. PRISM specializes in investigating and procuring insurance options on behalf of the County, resulting in cost savings through volume discounts and shielding from insurance market swings, which minimizes risk and uncertainty at renewal time. The Purchasing Department supports this non-competitive procurement based on PRISM’s specialized credentials, including their access to multiple brokers and extensive knowledge of the County’s needs.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Laura Feingold, Chief Assistant County Counsel, 387-5455) on May 1, 2025; Purchasing (Jessica Barajas, Supervising Buyer, 387-2065) on April 18, 2025; County Administrative Office (Diane Rundles, Assistant Executive Officer, 387-5572, and Anja Jacobsen, Executive Administrative Analyst, 387-9647) on April 25, 2025; Finance (Ivan Ramirez, Administrative Analyst, 387-4020) on May 5, 2025; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on May 5, 2025.