Long Beach, CA
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File #: 22-0676    Version: 1 Name: HR - Excess Workers’ Compensation insurance
Type: Contract Status: CCIS
File created: 6/6/2022 In control: City Council
On agenda: 6/21/2022 Final action: 6/21/2022
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 $628,456 for the period of July 1, 2022 through July 1, 2023. (Citywide)
Sponsors: Human Resources
Attachments: 1. 062122-C-13sr
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 $628,456 for the period of July 1, 2022 through July 1, 2023. (Citywide)

DISCUSSION
The continued purchase of excess workers’ compensation insurance is important to protect the City of Long Beach (City) from the negative financial consequences of high exposure losses that may result from injuries or deaths to employees due to major accidents 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 have continued to decline over the last ten years and loss ratios remain favorable. 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 multiple 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 $628,456, which represents an increase of 10 percent from the expiring policy, due to market increases and overall City payroll.

The Human Resources Department (Department) 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. These initiatives will likely continue to improve employee safety while driving workers’ compensation injuries down resulting in the most favorable insurance premiums and coverag...

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