HomeMy WebLinkAbout2009-06-09; City Council; 19846; Renewal of excess workers' compensation benefitsCITY OF CARLSBAD - AGENDA BILL
AB# 19,846
MTG. 06/09/09
DEPT. HUMAN RES.
RENEWAL OF EXCESS WORKERS'
COMPENSATION BENEFITS
DEPT. HEAD^C/
CITY ATTY. ^^
CITY MGR. U>^~
RECOMMENDED ACTION:
Approval of Resolution No. 2009-133 authorizing the renewal of Excess Workers'
Compensation Insurance coverage in accordance with staff's recommendation at a premium of
$114,306.
ITEM EXPLANATION:
The current excess Workers' Compensation Insurance Policy expires on June 30, 2009. 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 $114,306 to $176,985. Based on these quotes,
staff recommends renewing its policy with Safety National Casualty Corporation at a premium of
$114,306, which is lower than last year's premium of $129,031. 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 $114,306. Sufficient funds have been included in
the Fiscal Year 2009-10 budget.
ENVIRONMENTAL IMPACT:
This amendment is statutorily exempt from CEQA pursuant to Public Resources Code Section
21080(b)(1).
EXHIBITS:
1. Resolution No. 2009-133
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WITHDRAWN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
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CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER -SEE MINUTES
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1 RESOLUTION NO. 2009-133
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.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
12
Carlsbad, California, as follows:13
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 $114,306, 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 9- day of June. 2009, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Hall, Packard and Blackburn.
NOES: None.
ABSENT: None.
CLAUDE A
ATTEST:
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CITY OF CARLSBAD
EXCESS WORKERS' COMPENSATION
CARRIER COMPARISONS 2009/2010
ESTIMATED PAYROLL: $58,468,702
A
B
C
D
E
F
G
INSURANCE CARRIER RATING
SAFETY NATIONAL CASUALITY
CORPORATION
ARCH INSURANCE COMPANY A: XV
NEW YORK MARINE AND
GENERAL INSURANCE A: VIII
COMPANY
MIDWEST EMPLOYERS
CASUALTY COMPANY A *V
NATIONAL UNION FIRE
INSURANCE COMPANY OF PA
ACE AMERICAN INSURANCE . y
COMPANY AV
REPUBLIC INDEMNITY COMPANY
OF AMERICA
ADMITTED or WORKERS' EMPLOYERS
NON- COMPENSATION LIABILITY LIMIT LI
ADMITTED LIMIT (OCCURRENCE)
ADMITTED Statutory $2,000,000
ADMITTED Statutory $2,000,000
ADMITTED Statutory $2,000,000
ADMITTED $25,000,000 $2,000,000
Declined
EMPLOYERS
UBILLITY LIMIT
$2,000,000
$2,000,000
N/A
N/A
SELF-INSURED
$750,000
$750,000
$750,000
$1,000,000
SELF-
INSURED DEPOSIT
$1,000,000 $114,306
$1,000,000 $116,165
$1,000,000 $176,985
$1,000,000 $119,425
MINIMUM RATE PER
PREMIUM $100
$114,306 .1955
$116,165 .1986
$176,985 .3027
$119,425 Indication
- Minimum policy premium: $150,000
Declined - Premiums in Excess of $250,000.
Declined - Police and Fire Exposure associated with the risk
1) No CIGA Surcharge will be applied to any of the above quotes
2) Terrorism Coverage is included In all of the above quotes
LAST YEAR
ESTIMATED PAYROLL: $56,345,382
WORKERS' EMPLOYERS EMPLOYERS
COMPENSATION LIABILITY LIMIT LIABILITY LIMIT
LIMIT (OCCURRENCE) (POLICY)
SELF-
SELF-INSURED INSURED DEPOSIT MINIMUM RATE PER
RETENTION RETENTION PREMIUM PREMIUM $100
Police & Fire
SAFETY NATIONAL CASUALTY CORPORATION Statutory $2,000,000 $2,000,000 $750,000 $1,000,000 $129,031 $129,031 .2290
Please note the following as respects the 2009-10 quotes:
1) Safety National Casualty Corporation quotes are subject to: CA Cancellation Provisions, Employers Liability Per Occurrence A Aggregate Maximum Limits of Liability, Voluntary Compensation Endorsement,
Elimination of Commutation Clause, Self-Insured Retention Per Occurrence, Premium Due Date Endorsement, Serf-Insured Retention for CA Firefighter (7706) and CA Police Officers (7720) Class Codes, and CA
Mandatory Endorsements.
2) New York Marine and General quote is subject to receipt of: TPA approval prior to binding (Questionnaire available H there is Interest). Quotes are subject to the following endorsements: Volunteers
Endorsement and any state Mandatory endorsements.
3) Midwest Employers quote Is an indication. They cannot provide a retention below $1,000,000 or Statutory Limits.
mb200907]v - Calfebad WC. (07/09)