HomeMy WebLinkAbout2010-06-08; City Council; 20250; Renewal of Excess Workers Compensation BenefitsCITY OF CARLSBAD - AGENDA BILL
AB#
MTG.
DEPT.
20,250
06/08/10
HR
RENEWAL OF EXCESS WORKERS'
COMPENSATION BENEFITS
DEPT. HEAD ^
CITYATTY. ///
CITY MGR. fj ({^^
RECOMMENDED ACTION:
Approval of Resolution No. 2010-131 authorizing the renewal of Excess Workers'
Compensation Insurance coverage in accordance with staff's recommendation at a premium of
$118,028.
ITEM EXPLANATION:
The current excess Workers' Compensation Insurance Policy expires on June 30, 2010. 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 three carriers (see Exhibit 2).
The renewal quotes for annual premiums ranged from $118,028 to $150,000. Based on these quotes,
staff recommends renewing its policy with Safety National Casualty Corporation at a premium of
$118,028, which is slightly higher than last year's premium of $114,306. The stabilization 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 $118,028. Sufficient funds have been included in
the Fiscal Year 2010-11 budget.
ENVIRONMENTAL IMPACT:
This amendment is statutorily exempt from CEQA pursuant to Public Resources Code Section
21080(b)(1).
EXHIBITS:
2010-1311. Resolution No.
2. Summary of Excess Workers' Compensation Insurance Quotations
DEPARTMENT CONTACT: Debbie Porter 760-602-2441 debbie.porter@carlsbadca.gov
FOR CITY CLERKS
COUNCIL ACTION:
USE ONLY.
APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
nn
nn
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER -SEE MINUTES
Dn
nn
1 RESOLUTION NO. 2010-131
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:
13
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 $118,028, is hereby approved.
18 „
19 //
20
//
21
//
22
23 "
24 /'
25 //
26 //
27 //
28
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 8th day of June, 2010, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Hall, Packard, Blackburn
NOES: None
ABSENT: None
A—-* &si j ij^~
t>, City ClenT 0
CITY OF CARLSBAD
EXCESS WORKERS' COMPENSATION
CARRIER COMPARISONS 2010/2011
ESTIMATED PAYROLL: $60,372,458
INSURANCE CARRIER
A
B
C
0
E
F
G
SAFETY NATIONAL CASUALITY
CORPORATION
NEW YORK MARINE AND
GENERAL INSURANCE
COMPANY
MIDWEST EMPLOYERS
CASUALTY COMPANY
CHARTIS INSURANCE COMPANY
ARCH INSURANCE COMPANY
ACE AMERICAN INSURANCE
COMPANY
REPUBLIC INDEMNITY COMPANY
OF AMERICA
ADMITTED or WORKERS1
RATING NON- COMPENSATION
ADMITTED LIMIT
A: X ADMITTED Statutory
A: VIII ADMITTED Statutory
A+: XV ADMITTED S25.000.000
A: XV ADMITTED
A: XV ADMITTED
A+: XIV ADMITTED
A: IX ADMITTED
EMPLOYERS
LIABILITY LIMIT
(OCCURRENCE)
$2,000,000
$2,000,000
$2,000,000
EMPLOYERS
UABILLITY LIMIT
(POLICY)
$2,000,000
NfA
N/A
SELF-INSURED
RETENTION
$750,000
5750,000
$1.000,000
SELF-
INSURED DEPOSIT
RETENTION PREMIUM
Police & Fire
$1.000,000 $118.028
$1.000,000 $150,000
$1,000.000 $125,000
MINIMUM RATE PER
PREMIUM $100
$118,028 .1955
$150,000 Indication
$125.000 Indication
Minimum policy premium: $150,000 ($1 ,000.000 Self-Insured Retention)
Declined - Cannote compete wtth current pricing
Declined - Cannote compete with current pricing
Declined - Police and Fire Exposure associated with the risk
1) No CIGA Surcharge vat! be applied to any of the above quotes
2) Terrorism Coverage is Included In all of the above quotes
LAST YEAR
ESTIMATED PAYROLL: $58,468,702
WORKERS-
COMPENSATION
LIMIT
EMPLOYERS EMPLOYERS
LIABILITY LIMIT LIABILITY LIMIT
(OCCURRENCE) (POLICY)
SELF-
SELF-INSURED INSURED DEPOSIT
RETENTION RETENTION PREMIUM
Police & Fire
MINIMUM RATE PER
PREMIUM $100
SAFETY NATIONAL CASUALTY CORPORATION Statutory $2,000,000 $2,000.000 $750,000 $1,000,000 $114,306 $114,306 .1955
Please note the following as respects the 2010-11 quotes:
1) Safety National Casualty Corporation quotes are subject to: CA Mandatory Endorsements; XWC0288040908 - Employer Liability Per Occurrence & Aggregate Maximum Limits of Liability - CA; XWCO4S7021106 •
Employers'Liability Maximum Limit i. Aggregate Maximum Limit of Indemnity; XWC1061101207 - Policyhoiaers Disclosure Notice of Terrorism Insurance Coverage.
2) New York Marine and General quote Is an Indication, Minimum premium Is $160,000.
3) Midwest Employers quote Is an Indication. They cannot provide a retention below 31,000,000 or Statutory Limits.m<2"-
cr