HomeMy WebLinkAbout2008-06-10; City Council; 19465; Renewal of excess workers' compensation benefitsCITY OF CARLSBAD -AGENDA BILL 8
19,465
06/10/08
HUMAN RES.
RENEWAL OF EXCESS WORKERS'
COMPENSATION BENEFITS
DEPT. HEAD^
CITY ATTY^y
CITY MGR.^J^T
RECOMMENDED ACTION:
Approval of Resolution No. 2008-159 authorizing the renewal of Excess Workers'
Compensation Insurance coverage in accordance with staff's recommendation at a premium of
$129,031.
ITEM EXPLANATION:
The current excess Workers' Compensation Insurance Policy expires on June 30, 2008. This
policy provides for loss coverage which exceeds the City's self-insured retention level up to $25
million per occurrence.
Cal-Surance, the City's insurance broker, obtained renewal quotes from four carriers (see
Exhibit 2). The renewal quotes for annual premiums ranged from $99,731 to $304,718. Based
on these quotes, staff recommends renewing its policy with Safety National Casualty
Corporation. Safety National Casualty Corporation has offered three options for renewal.
Option A continues the current $25 million benefit limit. Option B increases the benefit limit to
$50 million. Option C offers a statutory benefit limit (i.e., unlimited benefit payout). The renewal
premium for Option C is $129,031, which is lower than last year's premium of $129,903, and it
offers an unlimited benefit payout. Therefore, staff recommends Option C. The decrease in the
premium is due to workers' compensation reforms instituted by Senate Bill 899 that were
effective in stabilizing past claims difficulties throughout the State of California.
The City's Self Insurance Retention (SIR) will remain at $1,000,000 for each claim for safety
employees and $750,000 for each claim for non-safety employees.
FISCAL IMPACT:
The recommended renewal quotation for one year is $129,031. Sufficient funds have been
included in the Fiscal Year 2008-09 budget.
EXHIBITS:
1. Resolution No.2008-159
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WITHDRAWN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
D
D
D
D
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER -SEE MINUTES
D
D
D
D
Page 2
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code section 21065 and CEQA Guidelines section 15738, these
amendments do not constitute a "project" within the meaning of CEQA and therefore, does not
require an environmental review.
1 RESOLUTION NO. 2008-159
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
8 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 $129,031, is hereby approved.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 10th day of June, 2008, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Hall and Nygaard.
NOES: None.
ABSENT: Packard.
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ATTEST:
LORRAINE M. WOOD, City Clerk
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CITY OF CARLSBAD
EXCESS WORKERS' COMPENSATION
CARRIER COMPARISONS 2008/2009
ESTIMATED PAYROLL: $56,345.382
A
B
C
E
E
E
E
G
H
1
INSURANCE CARRIER
SAFETY NATIONAL CASUALITY
CORPORATION
SAFETY NATIONAL CASUALITY
CORPORATION
SAFETY NATIONAL CASUALITY
CORPORATION
MIDWEST EMPLOYERS
CASUALTY COMPANY
NEW YORK MARINE AND
GENERAL INSURANCE
COMPANY
ACE AMERICAN INSURANCE
COMPANY
ACE AMERICAN INSURANCE
COMPANY
NATIONAL UNION FIRE
INSURANCE COMPANY OF PA
ARCH INSURANCE COMPANY
REPUBLIC INDEMNITY COMPANY
OF AMERICA
RATING
A IX
A' IX
A: IX
A+:XV
A: VIII
A»:XV
A+:XV
A+:XV
A: XV
A; IX
ADMITTED or WORKERS'
NON- COMPENSATION
ADMITTED LIMIT
ADMITTED $25.000.000
ADMITTED $50.000.000
ADMITTED Statutory
ADMITTED $25.000.000
ADMITTED Statutory
ADMITTED $25.000.000
ADMITTED Statutory
EMPLOYERS
LIABILITY LIMIT
(OCCURRENCE)
$2.000.000
$2.000.000
$2.000.000
$2.000.000
$2.000.000
$1.000.000
$1.000.000
EMPLOYERS
UAHLUTY LIMIT
(POLICY)
$2.000.000
$2.000.000
$2.000.000
N/A
N/A
N/A
N/A
SELF-INSURED
RETENTION
$750.000
$750.000
$750.000
$1.000.000
$750.000
$750.000
$750.000
SELF-
INSURED DEPOSIT
RETENTION PREMIUM
Polln&FIro
$1.000.000 $99.731
$1.000.000 $109.310
$1.000.000 $129.031
$1.000.000 $113.423
$1.000.000 $129200
$1.000.000 $291.016
$1.000.000 $304.718
MINIMUM
PREMIUM
$99.731
$109.310
S129.031
$102.081
$129.200
$291.016
$304.718
RATE PER
$100
.1770
.1940
.2290
.2013
.2293
.5165
.5406
Declined -Minimum policy premium: $150.000
Declined - Lost to competitive quote last year
DecGned - Police and Fii« Exposure associated with the risk
1)rto CUM Svrchyrge will oe applied to any oltho above quotas
V Terrorism Coverage ft mctudod In att of Om abort quoin
LAST YEAR
ESTIMATED PAYROLL: $52^80,134
WORKERS'
COMPENSATION
LIMIT
EMPLOYERS EMPLOYERS
LIABILITY LIMIT LIABILITY LIMIT
(OCCURRENCE) (POLICY)
SELF-
SELF-INSURED INSURED DEPOSIT
RETENTION RETENTION PREMIUM
Police &Flro
MINIMUM RATE PER
PREMIUM $100
SAFETY NATIONAL CASUALTY CORPORATION $25.000,000 52.000,000 $2.000.000 $750.000 $100.000 $129.903 $129.903 .2460
Ftone note On following at respects *• 200M8 quotes:
1) Safely National Casualty Corporation quotas an suojoct to: CA Cancellation PmvWom. Employers Liability Per Occurrence « Aggregate Maximum Unite of Liability. Voluntary Compensation Endorsement -
Premlwn Delineation, EUrrfattoa of CorrmKTUtlori Clause. SeirJnsurodRatentfa
Class Codes, and CA Mandatory Endorsements. QUOTES CAN BE BOUND AS A TWO YEAR POLICY{LQCK-WRATQ
an sub/ect to the following endorsements: Votuntoen Endorsement and any state Mandatory endorsements.
3) ACE American hntmnee quotes are suojact to: ACE Spe<^ Excess WCarrd EL poUcyCKE-11tJI^ Loss and ExpenwAd^trrnntEn&rsernent^LAEt^^ Trade or
Economic Sanctions Endorsement Voluntary Compensation Scnedule, AtotrffcaKOn of Premium Adjustment
4) UUwosl Employers quota Is subject UK SO-10 Amending Hem 1O - CiassMcatton ol Operations. IO49 Definition of Payroll Pertaining to Volunteers. IO-74A Aircraft Exclusion. lO-aSB Notice of terrorism Coverage
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