HomeMy WebLinkAbout2007-06-26; City Council; 19048; Renewal of Excess Workers Compensation BenefitsCITY OF CARLSBAD - AGENDA BILL 1
AB#
MTG.
DEPT.
19,048
06/26/07
HR
RENEWAL OF EXCESS WORKERS'
COMPENSATION BENEFITS
DEPT. HEAD-^
CITY ATTY.
T/Jef'^^-^'
jg.
CITY MGR. "~$V>
2007-149 authorizing the renewal of Excess Workers'
RECOMMENDED ACTION:
Approval of Resolution No.
Compensation Insurance coverage in accordance with staff's recommendation at a premium of
$129,903.
ITEM EXPLANATION:
The current excess Workers' Compensation Insurance Policy expires on June 30, 2007. This
policy provides for loss coverage which exceeds the City's self-insured retention level up to
$25,000,000 per occurrence.
Cal-Surance, the City's insurance broker, obtained renewal quotes from five carriers (see
Exhibit 2). The renewal quotes for annual premiums ranged from $97,207 to $159,705. Based
on these quotes, staff recommends renewing its policy with Safety National Casualty
Corporation. The renewal premium is $129,903, which is lower than last year's premium of
$149,025. The City's Self Insurance Retention (SIR) will remain at $1,000,000 for each claim
for safety employees. However, the City's SIR will decrease from $1,000,000 to $750,000 for
each claim for non-safety employees.
The decrease in the premium and SIR is due to recent workers' compensation reforms
instituted by Senate Bill 899 that were effective in stabilizing past claims difficulties throughout
the State of California.
FISCAL IMPACT:
The recommended renewal quotation for one year is $129,903. Sufficient funds have been
included in the Fiscal Year 2007-08 budget.
EXHIBITS:
1. Resolution No.2007-149
2. Summary of Excess Workers' Compensation Insurance Quotations
DEPARTMENT CONTACT: Debbie Porter 760-602-2441 dport@ci.carlsbad.ca.us
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
nnnnn
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER - SEE MINUTES
nnnn
1 RESOLUTION NO. 2007-149
2 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING
3 RENEWAL OF THE CITY'S EXCESS WORKERS'
4 COMPENSATION INSURANCE.
5 WHEREAS, the City has established a self-insurance program for workers'
6 compensation; and
7 WHEREAS, the City's Insurance Broker has received a renewal quotation for
^ Excess Workers' Compensation Insurance coverage; and
9
WHEREAS, upon evaluation of this quotation for excess insurance, the City
10 desires to renew its insurance.
11
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
12
Carlsbad, California, as follows:
14 1. That the above recitations are true and correct.
15 2. That the renewal of the City's Excess Workers' Compensation Insurance
16 coverage with Safety National Casualty Corporation, with the premium in the
17 amount of $129,903, is hereby approved.
.8 „
19 //
20
//
21
//22
23 "
24 //
25 //
26 //
27 //
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 26™ day of June, 2007, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Hall, Packard and Nygaard
NOES: None.
ABSENT: None.
ATTEST:
LORRAINE M. WOOD, City Clerk
(SEAL)
EXHIBIT 2
t
Kio
UJ
ct o
%*$
§§|
ill
Sit
gitofyw
0 g e
||||
£ C "5
O11
EMPLOYERSLIABILLITY LIMIT S!i£i"%(POLICY) RETEWsl|gii
S § o
3 2.
fel!|iO Q.
S §Sj
0 Q
^ z s
1 9
1s
INSURANCE CARRIERCO
S
sID
V>
*
03
u»
01
i
o8
$2,000,000 $1,0008o
80
CM
og
If)
CM
Dt
2§
s
<
i.A ARCH INSURANCE COMPANCO
s
r-
U>
i
1
8o
$2,000,000 $1,000o8
o"g
CM*
OOO_
§
gO
Vf
Q
5<
X
*
>.B ARCH INSURANCE COMPAN'0
CM
CO
5"
iof
CM
8o
8o
w>
1
$2,000,000 $750,1So
8o
»"
og
toCM
D
I§
x
<
fc
1SAFETY NATIONAL CASUALICORPORATION0
S
s>o
1
CO§s
V
8o
w
og
$2,000,000 5750,1oS§
CM"
8
§
o"£
Q
S§
X
*
fc
SAFETY NATIONAL CASUALI0 CORPORATIONCM
CM
r^S
i
CO8
8"
CO
§
1
o8og
w
go
8oo"
QUJ
5
S
X
<MIDWEST EMPLOYERSfc CASUALITY5
i
Declined - Not Competitive wg
<F ACE AMERICAN INS. CO.S
E
ned - Minimum policy prerniu1
S
i
NATIONAL UNION FIREINSURANCE COMPANY OF P|
S"Minimum policy premium: $:X
*H XL SPECIALTY^(0•c
1s•5?
aeo
^olice and Rre Exposure assi
1Q
5
^1 PRAETORIAN INSURANCE§!
^nc
J*
Z
1a
^ 'B
1 I
§• ^
i 1
i «1 1
Compensation to Archhe Arch quotations) inw *•s o
1 ^
8 ?
§ 1iu *O^U ft111 1
ife fec «a> <5
•fe ^^ <f>
° 'H
J2 -5
§ i ^C W *s^ Vi •Q
0 ^ CO
? * I
fc ra *•a is sw) S <Dc (5 •£! § 5
*Note #1: Contlnental/CNA hai**Note #2: A California Insurar(premiums include Broker Fee5
(O
D :II
i£
Q Z •-
J S g IS
isIsii
Sii
0. :£ ILU
St: Z E;K =: £8
o
1
8.?
U