TITLE
Recommendation to authorize City Manager, or designee, to purchase, through Alliant Insurance Services, excess workers’ compensation insurance with Safety National Casualty Corporation, for a total premium amount not to exceed $505,134, for the period of July 1, 2020 through July 1, 2021. (Citywide)
DISCUSSION
The continued purchase of excess workers’ compensation insurance is important to protect the City from the negative financial consequences of high exposure losses that may result from injuries or deaths to employees due to major accidents, fires, terrorist attacks, and earthquakes during work hours. This coverage will be obtained through the City’s casualty broker of record, Alliant Insurance Services, Inc.
This year’s policy for excess workers’ compensation will continue to provide $150 million in coverage, excess of a $5 million self-insured retention, at a premium of $505,134, which represents an increase of 3 percent from the expiring policy, due to an increase in City payroll.
This matter was reviewed by Principal Deputy City Attorney Gary J. Anderson on June 8, 2020. No Financial Management review was able to be conducted due to the urgency and time sensitivity of this item.
TIMING CONSIDERATIONS
City Council action is requested on June 23, 2020, to allow the City to bind insurance coverage by the renewal date of July 1, 2020.
FISCAL IMPACT
The total premium cost will not exceed $505,134 for the period of July 1, 2020 through July 1, 2021. Sufficient funding has been budgeted in the Insurance Fund Group in the Human Resources Department. The cost of excess workers’ compensation insurance is recouped from all funds, based upon department staffing (exposure) and workers’ compensation claims experience, with approximately 62 percent allocated to the General Fund Group. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impa...
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