CITY COUNCIL AGENDA ITEM
Memo Date: September 5, 2024
Agenda Date: September 10, 2024
Prepared By: Tammy Gemmati, Administrative Services Director
Through: Stockton Whitten, City Manager
Requested Action:
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Approve policy renewal for Workers' Compensation Specific Excess Insurance with Safety National Casualty Corporation for the period of October 1, 2024 through September 30, 2025, with an estimated annual premium of $202,401, pending approval of the FY2025 budget.
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BACKGROUND:
The City has been insured for our excess Workers' Compensation coverage with Safety National Casualty Corporation since October 1, 2011. The current policy expires September 30, 2024. Excess coverage is designed to protect our City from "unexpected" high-cost Workers' Compensation claims. The current policy includes "statutory" limits (unlimited), specific retention of $600,000, and a rate of $0.8175 per $100 of payroll. The City is self-insured up to the specific retention amount on all claims. Once a claim reaches this threshold, the claim is paid by the excess carrier.
Last year the City entered into an agreement with Gehring Group to provide safety and risk broker services on the City's property and risk insurance policies. Prior to this, the excess policy was brokered by Re-Ex Insurance Brokers and their commission was built into the renewal. Last year's renewal included a two-year rate guarantee, so there is no increase in rate this year. However, due to our broker agreement change the City will see a savings of $28,386 due to the commission of Re-Ex being removed from the policy.
This is requesting approval of the policy for Workers' Compensation Specific Excess Insurance with Safety National Casualty Corporation for the period of October 1, 2024 through September 30, 2025, with an estimated annual premium of $202,401, pending approval of the FY2025 budget.
This is an estimate of premium based on payroll estimates. An audit is done at the end of the ...
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