HomeMy WebLinkAbout2013-06-18; City Council; 21264; Renewal of Excess Workers Compensation InsuranceCITY OF CARLSBAD - AGENDA BILL
AB# 21,264 RENEWAL OF EXCESS WORKERS'
COMPENSATION INSURANCE
DEPT. HEAD<=.<W^^^
MTG. 06/18/2013
RENEWAL OF EXCESS WORKERS'
COMPENSATION INSURANCE CITY ATTY.
DEPT. HR
RENEWAL OF EXCESS WORKERS'
COMPENSATION INSURANCE
CITY MGR. ^
RECOMMENDED ACTION:
Approval of Resolution No. 2013-149 authorizing the renewal of Excess Workers'
Compensation Insurance coverage in accordance with staff's recommendation at a premium of
$153,092.
ITEM EXPLANATION:
The current excess Workers' Compensation Insurance Policy expires on June 30, 2013. This policy
provides for loss coverage which exceeds the City's self-insured retention level. The City's Self
Insurance Retention (SIR) will remain at $1,000,000 per claim for safety employees and $750,000 per
claim for non-safety employees.
Brown & Brown, Inc., the City's insurance broker, obtained renewal quotes from three carriers (see
Exhibit 2). The renewal quotes for annual premiums ranged from $134,058 to $350,000. Based on
these quotes, staff recommends renewing its policy with Safety National Casualty Corporation at a
premium of $153,092 which results in continuing the current SIR. The 12.5 percent increase in the
insurance rate (from .2540 per $100 of payroll to .2858 per $100 of payroll) is primarily due to
circumstances in the State of California regarding workers' compensation and the specific loss history of
this carrier and others who provide coverage for Police and Fire. This year's average increase in
California's pure premium workers' compensation rates was 43.1 percent.
FISCAL IMPACT:
The recommended renewal quotation for one year is $153,092. Sufficient funds have been included in
the Fiscal Year 2013-14 budget.
ENVIRONMENTAL IMPACT:
The proposed action does not qualify as a "project" under the California Environmental Quality Act
(CEQA) per State CEQA Guidelines Section 15378 as it does not result in a direct or reasonably
foreseeable indirect physical change in the environment.
EXHIBITS:
1. Resolution No. 2013-149
2. Summary of Excess Workers' Compensation Insurance Quotations
DEPARTMENT CONTACT: Rebecca Melillo 760-602-2442 rebecca.melillo(gcarlsbadca.gov
FOR CITY CLERKS USE ONL Y.
COUNCIL ACTION: APPROVED >n
DENIED •
CONTINUED •
WITHDRAWN •
AMENDED •
CONTINUED TO DATE SPECIFIC •
CONTINUED TO DATE UNKNOWN •
RETURNED TO STAFF •
OTHER - SEE MINUTES •
1 RESOLUTION NO. 2013-149
2 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING
RENEWAL OF THE CITY'S EXCESS WORKERS'
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
WHEREAS, upon evaluation of this quotation for excess insurance, the City
desires to renew its insurance,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carlsbad, California, as follows:
1. That the above recitations are true and correct.
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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
amount of $153,092, is hereby approved.
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PASSED, APPROVED AND ADOPTED at a Special Meeting of the City Council of the
City of Carlsbad on the 18*"^ day of June, 2013, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Packard, Wood, Blackburn and Douglas.
None.
ABSENT: None.
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MATTfHALL, Mayor
ATTEST:
BARBARA ENGLESOl>(l, City Clerk
CITY OF CARLSBAD
EXCESS WORKERS' COMPENSATION
CARRIER COMPARISONS 2013/2014
ESTIMATED PAYROLL: $53,566,042
INSURANCE CARRIER RATING
ADMITTED or
NON-
AOMrTTED
WORKERS'
COMPENSATION
LIMrr
EMPLOYERS
LIABIUTY LIMrr
(OCCURRENCE)
EMPLOYERS
UABILUTY LIMrr
(POJCY)
SELF-INSURED
RETENTION
SELF-
INSURED
RETENTION
Ponce &Ri«
DEPOSIT
PREMIUM
MINIMUM
PREMIUM
RATE PER
$100
A SAFETY NATIONAL CASUAUTY
CORPORATION AXI ADMrTTED Statutory $2,000,000 $2,000,000 $750,000 $1,000,000 $153,092 $145,437 .2858
B SAFETY NATIONAL CASUAUTY
CORPORATION A XI ADMHTED ^hjtory $2,000,000 $2,000,000 $1,000,000 $1,000,000 $134,058 $129,255 .2540
C ARCH INSURANCE COMPANY A+:XV ADMHTED Statutoiy $2,000,000 $2,000,000 $750,000 $1,000,000 $350,000 350.000 .6530
D MIDWEST EMPLOYERS
CASUALTY COMPANY A+:XV ADMrrTED $25,000,000 $1,000,000 N/A $750,000 $1,250,000 Declined
F ACE AMERICAN INSUR/WCE
COMPANY A+:XV ADMnTED Municipal Minimum Policy Premium: $200,000
E
NEW YORK MARINE AND
GENERAL INSURANCE
COMPANY
A: IX ADMrTTED $50,000,000 $1,000,000 N/A $750,000 $2,000,000 $200,000 $200,000 .3734
G STAR INSURANCE COMP>^Y A : IX ADMHTED Declined • Police and Fire Exposure associated with the risk
1) No CIGA Surcharge will be applied to any of the above quotes
2) Tarrarfsm Coveiage Is/nclucfetf A) aff of tte above quotes
LAST YEAR
ESUMATEO PAYROLL: $57/110,435
WORKERS'
COMPENSATION
UMIT
EMPLOYERS
LIABILITY LiMfT
(OCCURRENCE)
EMPLOYERS
LIABILITY LIMIT
(POUCY)
SELF-INSURED
RETENTION
SELF-
INSURED
RETENnON
Police ft Rre
DEPOSIT
PREMIUM
MINIMUM
PREMIUM
RATE PER
$100
SAFETY NATIONAL CASUALTY CORPORATION Statutory $2,000,000 $2,000,000 $750,000 $1,000,000 $145,822 $138,531 .2540
Please note the following as respects the 2013'14 quotes:
1) Safety National Casualty Cwnpmty quotes an sut^aet to the Mltmlng antkMsamants:
Endofsamants:
• CA Mandatory Endorsements
- XVVC 02f 4 001291: EmfOoyar-Blmang Acts
-XWC 0389 00 0908: Waiver of Subrogatkm
-XWC 0288 04 0908: Employers UabUity Per Occurrence A Aggregate Maximlum UmHs otUaUlity - CA
- WXC 0467 020 f409: EmtOoyms' UabHity Mmimum UmH 4 Aggregaie Uaxknium Umlt of Uidanmlty
' XWC 1081101207: PoUcyhoMars DIsclosura Mo0ce of renorfsm Insmanea Coverage
-XWCoesr001092: SIRparOccunatKa-PolleaADilvars
-XWC 1199 000707: SIR for CAFInOghtar Class Coda
- XWC 029107 0308: CA - Voluntary Compensation Endorsement - Premium Delineated
2} Arch Insuranca tuition Is an IneKeaUon wMch. If tfwra Is Inferesl; can ba conHmmd. U Is also sul^ect lo tha toBowlng andorsamants:
Tanmrtsm Msk Insuranca Program Remrthorlzatlon Act Endorsamant; CaWbmla Ammdatory Endorsamants.
3) Terrorism Covaraga Is Included In all quotas and tha premium Is Included In tha ilapostt premium.
4) UkNiastEmployars cannot offer a ratantton lowvthan $1,280,000 or limits mora than 428.000,000.
losses radeflrted to Include Allocated Loss Adjustment Expense Endt; m
X
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mba>l307i»-C«MatfWCCarri«Cai«aitam. (07/13)