REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 23, 2026
FROM
REBECCA SUAREZ, Director, Department of Risk Management
SUBJECT
Title
Renewal of Aircraft Hull and Liability and Airport Liability Insurance Programs
End
RECOMMENDATION(S)
Recommendation
1. Approve the renewal of the following insurance programs and premiums for a total premium of approximately $652,133:
a. Aircraft Hull & Liability, with $100,000,000 per occurrence and aggregate limits, as recommended by the County broker Alliant Insurance Services, Inc., for a premium of approximately $620,000, not-to-exceed 15% over the estimated cost, for the period of June 30, 2026, through June 30, 2027.
b. Airport Liability, with $100,000,000 per occurrence and aggregate limits, as recommended by the County broker Alliant Insurance Services, Inc., for a premium of approximately $32,133, not-to-exceed 15% over the estimated cost, for the period of June 30, 2026, through June 30, 2027.
2. Authorize the Chief Executive Officer, County Chief Financial Officer, or Director of the Department of Risk Management to execute the initial binding orders on behalf of the County and any subsequent binding orders, documents, or quotes necessary to approve mid-term change orders for additional coverage, not-to-exceed 15% over the estimated cost, per insurance program and premium, for the period of June 30, 2026, through June 30, 2027, subject to review by County Counsel.
3. Authorize the Chief Executive Officer, County Chief Financial Officer, or Director of the Department of Risk Management to execute the initial binding orders on behalf of the County to add unmanned aerial systems and unmanned aerial vehicles, subject to County Counsel review, without being subject to the mid-term adjustment limits set forth in Recommendation No. 2.
4. Authorize the Purchasing Agent to approve change orders to purchase orders issued for the insurance programs and premiums in Recommendation No. 1 for mid-term changes, subject to the limits referenced in Recommendation No. 2 and Recommendation No. 3.
(Presenter: Rebecca Suarez, Director, 386-8723)
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 total aggregate premium of approximately $652,133 is to be paid from the Department of Risk Management’s (DRM) various insurance funds. Other insurance costs are recovered from the policy user departments. Sufficient appropriation and revenue are included in DRM’s 2026-27 budget.
BACKGROUND INFORMATION
DRM administers the County’s self-insurance programs and maintains 28 different lines of insurance policies to provide additional protection for the County. On June 18, 2025 (Item No. 85), the Board of Supervisors (Board) approved the renewal of the insurance programs listed in Recommendation No. 1, for a total premium of approximately $535,420, for the period of June 30, 2025, through June 30, 2026.
The County has established contracts with four insurance brokers, including Alliant Insurance Services, Inc. (Alliant). The insurance brokers are responsible for conducting a thorough analysis of all current insurance programs to identify coverage overlaps and/or coverage deficiencies, and to compare and evaluate current programs against available insurance markets to determine if the current placements are the most cost-effective alternatives.
Approval of Recommendation No. 1 will provide a one-year coverage period of June 30, 2026 through June 30, 2027, for Airport Liability and Aircraft and Hull Liability. The total aggregate premium cost of approximately $652,133 represents an increase of $116,713, or approximately 21.8%, over last year’s final premium cost of $535,420 for the listed policies. This increase is due to the marketplace and exposure.
The final premium amounts will not be available until closer to the actual renewal date due to the complexity of negotiations that the County’s brokers engage in with multiple insurance carriers on behalf of the County. Approval of Recommendation No. 2 will authorize the Chief Executive Officer (CEO), County Chief Financial Officer (CFO), or Director of the DRM (Director) to execute the binding orders on behalf of the County to ensure a timely renewal process with no lapse in coverage. Additionally, Recommendation No. 2 will authorize the CEO, CFO, or Director to execute any subsequent binding orders, documents, or quotes necessary to approve mid-term changes to the policies referenced in Recommendation No. 1 for additional coverages, subject to a not-to-exceed limit of 15% over the total actual renewal cost, per insurance program and premium, for the period of June 30, 2026 through June 30, 2027. Authorizing the CEO, CFO, or Director to approve mid-term changes for additional coverage will allow the DRM to provide insurance coverage for any additional assets the County may acquire mid-term. Failure to provide insurance coverage for assets acquired mid-term may leave certain assets uninsured and expose the County to significant risk.
Approval of Recommendation No. 3 will authorize the CEO, CFO, or Director to execute the binding orders on behalf of the County to add unmanned aerial systems and unmanned aerial vehicles (drones), subject to County Counsel review, without being subject to the mid-term adjustment limits set forth in Recommendation No. 2. On May 5, 2026, it was brought to the attention of the DRM that multiple County departments had purchased drones over the past year. The DRM worked with the departments to obtain the required information to add to the policy, but additional information is still needed before it can be completed. Approval of Recommendation No. 3 will allow the DRM to renew the policy and later provide insurance coverage for the drones without delay.
Approval of Recommendation No. 4 will authorize the Purchasing Agent to approve change orders to purchase orders issued for the insurance program and premiums listed in Recommendation No. 1 for mid-term changes, subject to the limits referenced in Recommendation Nos. 2 and 3. Approval of Recommendation No. 4 will ensure continuous coverage and allow the County to update coverage as needed.
PROCUREMENT
On November 16, 2021 (Item No. 62), the Board approved contracts with insurance brokers, including Alliant., for the period of December 11, 2021, through December 10, 2026. DRM contracts with multiple brokers to leverage the experience each holds in specific markets. The brokers were selected to be the County’s insurance brokers for these various insurance programs due to their experience and expertise in their respective markets. The brokers marketed the various insurance programs for 2026-27 and approached new and existing markets for quotes, successfully obtaining proposals for these insurance programs for the coverage period of June 30, 2026, through June 30, 2027. The Purchasing Department supports this non-competitive procurement based on the specialized credentials of the insurance brokers selected.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (G. Ross Trindle III, Chief Assistant County Counsel, 387-5455) on June 4, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on June 4, 2026; and County Finance and Administration (Eduardo Mora, Administrative Analyst, 387-4376) on June 5, 2026.