REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
November 17, 2026
FROM
REBECCA SUAREZ, Director, Department of Risk Management
SUBJECT
Title
Amendment to Contracts with Insurance Brokers for County Insurance Programs
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 1 to the following insurance broker firm contracts, including a non-standard term, to extend each contract by one year, for the total term of December 11, 2021, through December 10, 2027, increasing the original estimated aggregate amount by $800,000, from $4 million to a total estimated aggregate cost of $4.8 million, to ensure continuity of insurance brokerage services to the County insurance programs:
1. Alliant Insurance Services, Inc., Contract No. 21-875
2. Arthur J. Gallagher & Co. Insurance Brokers of California, Contract No. 21-876
3. James + Gable Insurance Brokers, Inc., Contract No. 21-877
4. Willis Towers Watson Insurance Services West, Inc., formerly known as Willis Insurance Services of California, Inc., Contract No. 21-878
(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), as insurance broker firm services are funded from various Department of Risk Management (DRM) internal service funds, which are financed by County departments and Special Districts via internal service rates approved annually by the Board of Supervisors. The provision implementing a commission cap of 10% of total premiums paid for all policies procured for the County remains unchanged from the current contracts, and the estimated aggregate amount of $4 million for the five-year term of all contracts will be increased by $800,000 to address costs through December 10, 2027, for a total estimated aggregate amount of $4.8 million. Insurance premium costs associated with policies procured through these brokerage service agreements will be presented separately to the Board of Supervisors (Board) for approval prior to the policy expiration dates, which include the 10% commission. Sufficient appropriation is included in the DRM’s 2026-27 budget and will be included in DRM’s 2027-28 requested budget.
BACKGROUND INFORMATION
The DRM administers the County’s self-insurance programs for public liability and workers’ compensation claims, as well as other various insurance programs. The DRM procures excess insurance policies to provide additional protection for the County by transferring risk at the upper limits of the programs. The contracted insurance brokers (Brokers) are responsible for marketing and placing new and existing insurance programs for the County, conducting analysis of current insurance programs to identify coverage overlaps and/or deficiencies, and evaluating insurance cost to self-insurance retention ratio to recommend increasing or decreasing self-insurance retentions and/or coverage limits. Additionally, the Brokers may provide access to tools and resources that are used exclusively by the insurance industry. Approval of recommended Amendment No. 1 to the Broker contracts in Recommendation Nos. 1-4 will exercise the option to extend the respective contract terms for a period of one year, allowing the contracted firms to provide uninterrupted insurance brokerage services to the County.
On November 16, 2021 (Item No. 62), as a result of a competitive procurement process, ePro Bid No. RMG121-RMADM-4216, the Board approved the contracts in Recommendation Nos. 1-4 with four insurance brokerage firms, with an estimated aggregate cost of $4 million for a five-year period of December 11, 2021 through December 10, 2026.
The Amendment was negotiated by the parties and contains a term that differs from the standard County contract:
1. Payment is due upon receipt of the insurance premium invoices.
• County standard payment terms are Net 60 days with no interest or late payment penalties.
• Potential Impact: County standard processing time is 60 days or more. Failing to pay upon receipt of the insurance premium invoices may result in lapse of insurance coverage by the insurance carriers. As well, a material breach of the Agreement, which could allow the Brokers to terminate the Agreement and seek other legal remedies.
DRM recommends approval of the Amendment, including the non-standard language, to allow DRM time to complete a thorough competitive solicitation and align the fiscal requirements of the contract with the updated requirements of the brokers.
PROCUREMENT
Risk Management is requesting a one-year extension of the existing agreements to allow sufficient time to complete the solicitation process for insurance broker services. Purchasing supports the one-year extension through a non-competitive justification to maintain the existing agreements while Risk Management completes and issues a new solicitation for insurance broker services.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (G. Ross Trindle III, Chief Assistant County Counsel, 387-5455) on October 23, 2026; Purchasing (Alba Cortez, Buyer III, 387-3372) on October 23, 2026; Risk Management (Tamra DeMartini, Deputy Director, 386-9022) on October 23, 2026; and County Finance and Administration (Scott Bruckner, Administrative Analyst, 387-4020) on October 29, 2026.