HomeMy WebLinkAbout2011-06-21; City Council; 20590; RENEWAL EXCESS WORKERS COMPENSATION BENEFITSCITY OF CARLSBAD - AGENDA BILL 8
AB# 20,590
MTG. 06/21/11
DEPT. HR
RENEWAL OF EXCESS WORKERS'
COMPENSATION BENEFITS
DEPT. HEAEF-/ ' Llf
CITY ATTY. /y
CITY MGR. / fc>--~
RECOMMENDED ACTION:
Approval of Resolution No. 2011-136 authorizing the renewal of Excess Workers'
Compensation Insurance coverage in accordance with staffs recommendation at a premium of
$111,863.
ITEM EXPLANATION:
The current excess Workers' Compensation Insurance Policy expires on June 30, 2011. 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 $111,863 to $146,529. Based on these quotes,
staff recommends renewing its policy with Safety National Casualty Corporation at a premium of
$111,863, which is slightly lower than last year's premium of $118,028. 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 $111,863. Sufficient funds have been included in
the Fiscal Year 2011-12 budget.
ENVIRONMENTAL IMPACT:
This amendment is statutorily exempt from CEQA pursuant to Public Resources Code Section
21080(b)(1).
EXHIBITS:
1. Resolution No. 2011-136
2. Summary of Excess Workers' Compensation Insurance Quotations
DEPARTMENT CONTACT: Debbie Porter 760-602-2441 debbie.porter@carlsbadca.gov
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WITHDRAWN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.2Q11-136
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
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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:
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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
7 amount of $111,863, 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 21st day of June 2011, by the following vote to wit:
AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard.
NOES: None.
ABSENT: None.
MATT HALL, Mayor
ATTEST:
(SEAL')
INE M. WOOD, City Clerk
CITY OF CARLSBAD
EXCESS WORKERS' COMPENSATION
CARRIER COMPARISONS 2011/2012
ESTIMATED PAYROLL: $60,230,678
INSURANCE CARRIER
SAFETY NATIONAL CASUALITY
A CORPORATION
SAFETY NATIONAL CASUALITYB CORPORATION
C ARCH INSURANCE COMPANY
MIDWEST EMPLOYERS
CASUALTY COMPANY
ACE AMERICAN INSURANCE
COMPANY
NEW YORK MARINE AND
E GENERAL INSURANCE
COMPANY
6 STAR INSURANCE COMPANY
ADMITTED or WORKERS-
RATING NON- COMPENSATION
ADMITTED LIMIT
A: X ADMITTED Statutory
A: X ADMITTED Statutory
A: XV ADMITTED Statutory
A*: XV ADMITTED $25.000.000
A»; XV ADMITTED
A: VIII ADMITTED
A-: IX ADMITTED
SELF-
LIABHJTY'LI^T uA^LLmrTiMiT SELF-|NSUREO INSURED DEPOSIT MINIMUM
Poll co & Flro
$2.000.000 $2.000,000 $750,000 $1.000.000 $117.751 $111.863
RATE PER
$100
.1955
Minimum policy premium: S1 50.000 ( $1 .000.000 Self Insured Retention)
$2.000.000 $2,000.000 $750.000
S2.000.000 N/A $1.000.000
Minimum Policy Premium:
$1,000.000 $124.015 124.015
$1.000.000 $146.529 $146.529
$125.000
0.2059
Indication
Declined: Not competitive with incumbent carrier.
Declined - Police and Fire Exposure associated with the risk
1) Mo OGA Surcharge will He applied to any of UK above quotas
3) Terrorism Coverage is Included In all of the above quotes
LAST YEAR
ESTIMATED PAYROLL: $60,372,458
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 ft Flra
SAFETY NATIONAL CASUALTY CORPORATION Statutory S2.000.000 S2.000.000 S750.000 S1.000.000 $116.028 $118.026 .1955
Please note On following as respects the 2011-12 quotes:
1) Safety National Casualty Company quotes are subject to the same policy form and endorsements as expiring.
H Arch Insurance option Is subject to trtt following endorsements: tosses redefined to Include Allocated Loss Adjustment Expense Endt; Terrorism Risk Insurance Program Rsautnorfzatfbn Act endorsement;
California Amendatory Endorsements.
4) Hfdwest Employers cannot offer a retention lower then t1.OOO.OOO or Statutory limits ami has given a focused Indication,
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