TITLE
Recommendation to authorize City Manager, or designee, to purchase, through Alliant Insurance Services, Inc., excess workers’ compensation insurance with Safety National Casualty Corporation, for a total premium not-to-exceed $571,324 for the period of July 1, 2021, through July 1, 2022. (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. (Alliant).
Workplace injuries on average continue to decline year over year and loss ratios remain favorable as depicted in Attachment A. The general marketplace has shown little change over the prior several years from a workers’ compensation trends perspective. As a result, the workers’ compensation market continues to remain competitive. This year, as in previous years, the excess workers’ compensation was sent to various carriers for consideration. Incumbent carrier, Safety National Casualty Corporation, was the most competitive with the lowest premium.
This year’s policy for excess workers’ compensation will continue to provide $150 million in coverage, in excess of a $5 million self-insured retention, at a premium of $571,324, which represents an increase of 13 percent from the expiring policy, due to market increases and overall City payroll.
The Risk Management Bureau is strategizing various initiatives to continue to improve and stabilize or drop the workers’ compensation premiums and continue to increase employee safety and reduce employee injuries. This can be accomplished by continuing to conduct a hazard analysis and job hazard analysis, continue to provide employee safety training, and provide personal protective equipment (PPE...
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