HomeMy WebLinkAbout2016-06-14; City Council; 22313; Renew excess workers compensation insurance with an annual fiscal impact of $185, 792CITY OF CARLSBAD-AGENDA BILL
AB# 22,313 RENEW EXCESS WORKERS' COMPENSATION DEPT. HEAD "'~t'
MTG. 6-14-16 INSURANCE WITH AN ANNUAL FISCAL CITY ATTY. ,G./~ ~
IMPACT OF $185,792 DEPT. ASD-HR CITY MGR. /1 ~z-~-
RECOMMENDED ACTION:
Adopt a Resolution authorizing the renewal of excess workers' compensation insurance coverage in
accordance with staff's recommendation with an annual fiscal impact of $185,792.
ITEM EXPLANATION:
The current excess workers' compensation insurance policy expires on June 30, 2016. 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, approached carriers who are the major writers of
Municipal Excess Workers' Compensation coverage in California and obtained quotes from three
carriers (see Attachment A). Safety National Insurance has been the incumbent carrier since FY 2007-
08. Based on our successful history with this carrier and the acceptable quote, staff recommends
renewing its policy with Safety National Casualty Corporation at a premium of $185,792, which results
in continuing the current SIR, and reflects a rate of 0.3069 per $100 of payroll. This is an increase of
2.47% (from 0.2995 per $100 of payroll to 0.3069 per $100 of payroll).
FISCAL IMPACT:
The recommended renewal quotation for one year is $185,792. Funding for this will be included in the
FY 2016-17 budget.
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the
meaning of CEQA in that it has no potential to cause either a direct physical change in the environment,
or a reasonable foreseeable indirect physical change in the environment; and therefore, does not
require environmental review.
EXHIBITS:
1. A Resolution authorizing the renewal of excess workers' compensation insurance coverage in
accordance with staff's recommendation with an annual fiscal impact of $185,792.
2. Attachment A: Excess Workers' Compensation 2016
DEPARTMENT CONTACT: Donna Hernandez 760-602-7533 donna.hernandez@carlsbadca.gov
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WITHDRAWN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
Item 7; pg. 1
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
and
RESOLUTION NO. 2016-109
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING RENEWAL OF THE CITY'S EXCESS
WORKERS' COMPENSATION INSURANCE
EXHIBIT 1
WHEREAS, the city has established a self-insurance program for workers' compensation;
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.
2. That the renewal of the city's excess workers' compensation insurance with Safety
National Casualty Corporation, with the premium in the amount of $185,792, is
hereby approved.
II
II
II
II
II
II
II
Item 7; pg. 2
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 ofthe City Council of the City of
Carlsbad on the 14th day of June, 2016, by the following vote:
AYES: Hall, Wood, Schumacher, Blackburn, Packard.
NOES: None.
ABSENT: None.
ATIEST:
Item 7; pg. 3
TWO YEAR OPTION
SAFETY NATIONAL CASUALTY
CORPORATION A+: XIV ADMITTED Statutory $2,000,000 $2,000,000 $750,000 $1,000,000 $185,792 $334,426 0.3069
CITY OF CARLSBAD
EXCESS WORKERS' COMPENSATION
2016
ESTIMATED PAYROLL: $60,538,141
INSURANCE CARRIER RATING
ADMITTED or
NON-
ADMITTED
WORKERS'
COMPENSATION
LIMIT
EMPLOYERS
LIABILITY LIMIT
(OCCURRENCE)
EMPLOYERS
LIABILLITY LIMIT SELF-INSURED
(POLICY RETENTION
AGGREGATE)
SELF-INSURED
RETENTION
(Police & Fire)
DEPOSIT
PREMIUM
MINIMUM
PREMIUM
(90%)
RATE PER
$100
A SAFETY NATIONAL CASUALTY
CORPORATION A+: XIV ADMITTED Statutory $2,000,000 $2,000,000 $750,000 $1,000,000 $185,792 $167,213 0.3069
B MIDWEST EMPLOYERS
CASAULTY COMPANY A+:XV ADMITTED $100,000,000 $2,000,000 $2,000,000 $1,000,000 $1,500,000 $340,769 $306,692 0.5629
C ARCH INSURANCE COMPANY A+:)(\/ ADMITTED Statutory $2,000,000 $2,000,000 $750,000 $1,000,000 $352,029 $316,826 Indication
1) No CIGA Surcharge applies.
2) Terrorism Coverage is included.
LAST YEAR
ESTIMATED PAYROLL: $60,692,580
WORKERS' EMPLOYERS
COMPENSATION LIABILITY LIMIT
LIMIT (OCCURRENCE)
EMPLOYERS
LIABILLITY LIMIT SELF-INSURED
(POLICY RETENTION
AGGREGATE)
SELF-INSURED
RETENTION
(Police & Fire)
DEPOSIT
PREMIUM
MINIMUM
PREMIUM
(90%)
RATE PER
$100
SAFETY NATIONAL CASUALTY CORPORATION Statutory $2,000,000 $2,000,000 $750,000 $1,000,000 $181,774 $163,597 0.2995
Please note the following as respects the 20116-17 quote:
1) Safety National Casualty Company quotes are subject to the following endorsements:
Endorsements:
- CA Mandatory Endorsements
- XWC 0216 00 1291: Employer - Binding Acts
- XWC 0389 00 0908: Waiver of Subrogation
- XWC 0288 00 0908: Employers' Liability Per Occurrence & Aggregate Maximium Limits of Liability- CA
- XWC 1061 11 1105: Policyholders Disclosure Notice of Terrorism Insurance Coverage
- XWC 0557 00 1092: SIR per Occurrence - Police & Drivers
- XWC 1199 00 0707: SIR for CA Firefighter Class Code
- XWC 0291 070308: CA - Voluntary Compensation Endorsement - Premium Delineated
- XWC 1810 01 07012: CA Short Rate Cancelktion Provision - Specific Excess
2) State of operations: California
3) This Agreement includes coverage for Workers' Compensation loss caused by acts of Terrorism as defined in the Agreement.
4) Included in the quote are the MAP Client Services. These resources consist of both risk control and claim services.
m62015017,, - Carlsbad WC Carder Comparison. (07/15) Item 7; pg. 4