BLUE SPRINGS R-IV SCHOOL DISTRICT 1801 N.W. Vesper Blue Springs, MO REQUEST FOR PROPOSAL INSURANCE BROKER SERVICES

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1 BLUE SPRINGS R-IV SCHOOL DISTRICT 1801 N.W. Vesper Blue Springs, MO REQUEST FOR PROPOSAL INSURANCE BROKER SERVICES SUMMARY: Deadline for Response: Friday, March 20, 2015, by 5:00 pm Send Responses to: Kirk Sampson, Director of Business Services INSURANCE BROKER RFP Blue Springs R-IV School District 1801 NW Vesper Blue Springs, MO Proposed Award Date: May 1, 2015 Effective Date of Awarded Contract: July 1, 2015 Responses must be received (not postmarked) by the deadline. No faxed or ed responses will be accepted. Scope of Services Requested The Blue Springs R-IV School District ( District ) seeks to retain the services of a single company or insurance broker ( Broker ) to provide risk management assessment on a District-wide basis and to assist the District in implementing a program to address those risks that would include placing necessary insurance contracts. The services would include the areas of general liability, property and casualty, commercial vehicles/fleet and worker s compensation and any other coverages which may be included in those areas (i.e. employment practices, errors and omissions and law enforcement under the general liability umbrella; crime, boiler and inland marine under the property umbrella). The District requests this service for the school year with possible renewal for succeeding years. The services subject to this request include, at a minimum, the following. 1. Complete a District-wide risk assessment in the areas set forth above and other areas that may become apparent as a result of the assessment. 1

2 2. Based on the risk assessment, provide a comprehensive program for addressing the risks to include locating insurance carriers, obtaining bids as requested by the District, negotiating directly with those carriers on behalf of the District, and placing necessary insurance contracts. The Broker shall act as the liaison between the District and the insurance carriers on all issues related to the insurance contract including but not limited to claims. 3. Provide ongoing consultation, advice and counsel to the District regarding ongoing risk assessment and programs to address identified risks; insurance policy review, interpretation and renewal; changes or updates in policy coverage; claims submittal, procedures and resolution; changes in financial status or condition of insurance carriers used by the District; significant changes in the insurance marketplace which may affect the District. 4. As for claims, the District seeks the assistance of a Broker who will view their role as the District s watchdog and will take an aggressive position in assisting the District with overseeing all claims. The District intends to be proactive in the claims process in an attempt to control losses related to claims handling and settlement. 5. Provide prompt responses or service to District inquiries, requests for information or assistance or certificates of insurance. The District expects responses within 24 hours to its inquiries and requests and/or a communication from the Broker as to when a response may be expected. Proposal Guidelines/Terms and Conditions Response: Three copies of the Broker s response with the signed Acknowledgement accompanying each should be submitted to Kirk Sampson, Director of Business Services, Blue Springs R-IV School District, 1801 N.W. Vesper, Blue Springs, MO Responses must be received (not postmarked) by the deadline. No faxed or ed responses will be accepted. In order to be considered, you must respond to each separate inquiry in the Request for Proposal listed under Information Requested. Incomplete responses will not be considered. The District reserves the right to request clarifications concerning information provided in the response. The District is not liable for any cost or expense incurred by the Broker in responding to this Request for Proposal. All responses shall remain valid and binding for a period of ninety (90) calendar days from the proposal submission date. An authorized representative of the company shall sign all responses. Term: The term of the agreement for services with the selected Broker shall be one year for the fiscal year with the option to renew the agreement on an annual basis for four additional years. The agreement will further provide that either party may terminate the agreement based on a material breach by the other party or with or without cause upon giving 30 days written notice. 2

3 Fee: The District is requesting that the services be provided on an annual flat fee basis. The Broker must agree to quote insurance contracts on a net of commission basis, or that any commissions received by the Broker from the insurance carrier shall be credited against the fee owed by the District with any excess paid to the District. The Broker shall bill quarterly and the District shall pay within thirty (30) days of receipt of the quarterly billing. Response Deadline: Responses must be received by 5:00 p.m. on March 20, Responses received after the deadline will not be opened and will be returned. Selection Criteria: The criteria considered in selecting the Broker will include, but not be limited to, (1) qualifications and experience of personnel in the school district/public entity market, (2) school district/public entity market experience, (3) insurance markets proposed, (4) support services offered, and (5) amount of fee for services. Award: The intent of the District would be to make the selection on or before May 1, 2015, with an effective contract date of July 1, If deemed necessary, interviews of brokers will be conducted. The award is subject to approval of the board of education. The District reserves the right to reject any and all proposals, to waive irregularities and informalities, and to make the award at its sole discretion and for the benefit of the District. The District is not bound to accept the proposal solely based on the lowest monetary offer. The District further reserves the right to negotiate the specific terms of the agreement with the Broker awarded the contract that would include the amount of the proposed fee. Relationship: Broker is an independent contractor and as such is not an employee of the District. Broker is responsible for all federal, state and local taxes. Further, Broker agrees to maintain Professional Liability Insurance in an amount of no less than $500,000 and, upon request, provide the District with certification thereof. Assignment: Selected Broker will be prohibited from assigning, transferring, conveying, subletting, or otherwise disposing of this proposal or any resultant agreement or its rights, title or interest therein or its power to execute such agreement to any other person, agent, broker, company or corporation without the previous written approval of the District. Hold Harmless: The contract with the Broker will include an agreement by the Broker to hold the District harmless, indemnify and release the District from any claims or lawsuits that may arise from the insurance broker s activities under the provisions of the contract. General District Information The Blue Springs R-IV School District is located on the eastern edge of the Kansas City metro area in Jackson County, Missouri. It covers a total of 58 square miles and includes 3

4 students from the communities of Blue Springs, Grain Valley, Independence, Lake Tapawingo and Lee s Summit. Students: During the school year, the District has enrolled approximately 14,336 students. This includes 6,498 elementary students, 3,266 middle school students, 4,572 high school students. There are 251 students enrolled in early childhood/mhp programs. Facilities: The District has 2 high schools, 1 freshmen center, 1 alternative high school, 4 middle schools, 13 elementary schools, and 1 early childhood center. In addition, the District has a central office building, a transportation building, maintenance and grounds building, Paul Consiglo Education Center, and several warehouses. For property insurance purposes, the District had total insured values of $420,655,954 for the fiscal year. Staff: For the school year, the District has approximately 2,000 paid staff. There are approximately equal numbers of certified and classified staff. The District has an annual payroll of approximately $95,000, The District maintains its own transportation department. That department has approximately 193 employees which includes approximately 135 bus drivers. The District has a bus fleet of approximately 150 buses. Insurance: The following is a summary of the carriers and premiums for the fiscal year. Type Carrier Premium Property & Casualty Travelers $348,831 General Liability MOPERM $41,680 Employment Practices MOPERM $22,757 Errors & Omissions MOPERM $23,674 Law Enforcement MOPERM $6,080 Workers Compensation Travelers $147,071 Commercial Bus Fleet MOPERM $110,101 Non Bus Fleet MOPERM $55,390 Additional information on the District may be obtained by visiting the District s web site at and visiting the Department of Elementary and Secondary Education at and reviewing school data and statistics. For information on the City of Blue Springs, visit 1. Agency/Personnel Information: Information Requested A. Identify the name of the company or agency submitting this response and state the address of the business location from which the District account will be managed. 4

5 B. Provide a list of all personnel who will be working on the District account, including the primary contact person, and include the business location of each such person, a summary of each persons duties and responsibilities on the account, their length of time with your company, their background and experience in the insurance industry and their experience in the school district and public entity market. C. State separately the total annual premium placed by your company in each of the past five years in the areas of commercial liability, commercial property and casualty and worker s compensation insurance. D. State separately the total annual premium placed by your company in each of the past five years for school districts in the areas of commercial liability, commercial property and casualty and worker s compensation insurance. 2. School District Market Experience: A. Provide a list of school districts in the state of Missouri for whom your company has placed or places insurance including liability, property and casualty or worker s compensation insurance and include in your response as to each district: (1) the name of the contact person with the district and their telephone number; (2) the insurance lines placed by your company for the district (i.e. liability, property & casualty, workers compensation, employee benefits, etc.); and (3) number of years of service to the district in placing the insurance. B. Provide the same information for districts outside the state of Missouri and, as additional information, include in your response the size of each such district by student and staff population. 3. Public Entity Market Experience: A. Provide a list of public entities in the state of Missouri for whom your company has placed or places insurance including liability, property or worker s compensation insurance and include in your response as to each public entity: (1) the name of the contact person and their telephone number; (2) the insurance lines placed by your company for the public entity (i.e. liability, property & casualty, workers compensation, employee benefits, etc.); and (3) number of years of service to the public entity in placing the insurance. B. Provide the same information for public entities outside the state of Missouri and, as additional information, include in your response the size of each such public entity by population and total number of staff. 5

6 4. Insurance Markets Proposed: A. List all insurance companies you would solicit to provide a bid on providing liability insurance coverage for the District and state (1) whether your company would solicit them directly or through another company or broker and (2) which company would be your first choice to provide the insurance coverage and why. B. List all insurance companies you would solicit to provide a bid on providing property and casualty insurance coverage for the District and state (1) whether your company would solicit them directly or through another company or broker and (2) which company would be your first choice to provide the insurance coverage and why. C. List all insurance companies you would solicit to provide a bid on providing worker s compensation insurance coverage for the District and state (1) whether your company would solicit them directly or through another company or broker and (2) which company would be your first choice to provide the insurance coverage and why. D. List all insurance companies you would solicit to provide a bid on providing commercial fleet insurance coverage for the District and state (1) whether your company would solicit them directly or through another company or broker and (2) which company would be your first choice to provide the insurance coverage and why. 5. Services and Fee: A. Provide a summary and sample contract/fee agreement setting forth the services that your company includes in its flat fee for serving as the single risk manager/insurance broker for the District in the areas of liability, property and casualty, commercial vehicles/fleet and worker s compensation insurance. B. Provide detail as to services provided to assist the District in assessing risk and handling claims that would be included in the fee for services and state (1) whether you have a loss control/risk professional on your staff and if so, how many; (2) whether loss control services are included in your fee and if so, how many hours of those services are included and if not, how are those services billed and at what rate; (3) whether you have claims professionals as a part of your staff and if so, how many; (4) whether claims services are included in your fee and if so, how many hours of those services are included and if not, how are those services billed and at what rate. C. Provide a detailed statement of the program you would suggest to assist the District in controlling losses based on worker s compensation claims originating from the District s transportation department. 6

7 D. State the annual fee which you would charge to serve as the single risk manager/broker in the areas of liability, property and casualty, commercial vehicles/fleet and worker s compensation which fee must include all the services requested in this Request for Proposal. E. State whether you will agree to provide certificates of insurance within 48 hours of request from the District. F. State whether the insurance premiums which would be submitted by your company if selected as the Broker will be quoted net of commission and if not, state the approximate commission percentage the Broker will receive on liability, property and casualty, commercial vehicles/fleet and worker s compensation insurance. Submitting party agrees that any commissions received will be credited against the annual fee charged to the District with any excess commission being paid to the District. G. State the approximate savings that the District might realize if you serve as the Broker on an annual fee basis, i.e. total commission on policies placed versus annual fee compensation with any commissions being credited against the annual fee and excess commissions being paid to the District. 7

8 ACKNOWLEDGMENT By signing this Acknowledgement, the Broker is hereby acknowledging and agreeing as follows. 1. The Broker has read the entire Request for Proposal, acknowledges that the General District Information provided herein is an estimate of the stated information, and agrees to the Proposal Guidelines/Terms and Conditions. 2. The Broker acknowledges that the District has the right to reject any and all proposals and is not bound to accept the lowest bid. 3. The Broker agrees that the proposal, including the fee for services rendered, may not be withdrawn for ninety (90) days from March 6, 2015, and shall be binding on Broker during the ninety (90) day period. 4. Upon receipt of written notice of award, the successful Broker agrees to execute a formal written contract within thirty (30) days of the date of the notice. 5. The undersigned affirms that they are authorized to enter into contracts on behalf of the Broker making this submission. 6. By signing this Acknowledgement, Broker affirms that the information contained in their response to this Request for Proposal is true and accurate to the best of their knowledge and belief. Signature Print Name Title Entity Name Date 8