Excess Worker's Compensation Insurance RenewalMasterpiece on the Mississippi
Dubuque
bierd
All-America City
1
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Fiscal Year 2013 Worker's Compensation Excess Insurance Renewal
DATE: June 26, 2012
Personnel Manager Randy Peck recommends City Council approval of the Worker's
Compensation Excess Insurance renewal rate of $.179 per $100 of payroll with Safety
National effective July 1, 2012 through June 30, 2013, for a total premium of $69,505.
This renewal will maintain the retention limit of $500,000 (each accident) and include
sworn police officer and firefighter medical claims under a $600,000 retention limit.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Randy Peck, Personnel Manager
Masterpiece on the Mississippi
Dubuque
AA- America Cily
'111'
2007
TO: Michael C. Van Milligen, City Manager
FROM: Randy Peck, Personnel Manager
SUBJECT: Fiscal Year 2013 Worker's Compensation Excess Insurance Renewal
DATE: June 21, 2012
Cottingham and Butler presented the Worker's Compensation Excess Insurance
Renewal options for coverage effective July 1, 2012. Quotes were obtained from our
current carrier, Safety National, and Midwest Employers. NY Magic and MidLand
Management declined to quote. The following is a summary of the quotes:
• Safety National - $69,505
• Midwest Employers - $142,543
Safety National has increased their rate per $100 of payroll from $.138 to $.179. The
current premium is $51,503. The increase is related to the increase in our payroll and
the increase in the rate per $100 of payroll. Finance Director Ken TeKippe and I
recommend that we continue with Safety National as our Excess Worker's
Compensation carrier effective July 1, 2012 through June 30, 2013. We also
recommend maintaining the retention limit of $500,000 (each accident) and including
sworn police officer and firefighter medical claims under the $600,000 retention limit.
The requested action is for the City Council to pass a motion approving the renewal rate
of $.179 per $100 of payroll submitted by Safety National, maintaining the retention limit
of $500,000 (each accident) and including sworn police officer and firefighter medical
claims under a $600,000 retention limit effective July 1, 2012 through June 30, 2013, for
a total premium of $69,505. Cottingham and Butler has issued a binder to make sure
there will be no lapse in coverage on July 1, 2012.
RP:jmh
cc: Ken TeKippe, Finance Director
CITY OF DUBUQUE
EXCESS WORKERS' COMPENSATION COVERAGE SPECIFICATIONS
Company:
A.M. Best Rating:
Status:
Rating and Status as of.
Limits:
Workers' Compensation (each accident)
Employer's Liability (each accident)
Self- Insured Retention (each accident)
All Other
Police /Fire
Aggregate Protection
Estimated Payroll
Rate per $100 of Payroll
2011 2012 2012/2013
Safety National Safety National
A, XI A, XI
Admitted Admitted
5/16/12 5/16/12
Statutory
$1,000,000
Statutory
$1,000,000
2012 2013
Midwest Employers
A +, XV
Admitted
10/25/11
$500,000
$600,000
None
$37,320,685
.138
$500,000
$600,000
None
$38,829,530
.179
Statutory
$1,000,000
$500,000
$600,000
None
$38,829,530
.3671
Policy subject to Annual Audit:
Yes
Yes
Yes
TOTAL ESTIMATED ANNUAL PREMIUM
Minimum Premium
$51,503
$51,503
$69,505
$69,505
$142,543
$128,289
Note: Higher limits may be available. Please let us know if you would like a quote for higher limits.
We also approached NY Magic /Midland Management who declined to quote due to inability to be competitive on
pricing.
Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review.
Adequate lead time required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48
hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of 5 business days.
Cottingham & Butler
Page 6
Rate History:
Year
2012/13
Payroll
$38829; 530
SIR
$5001000/$600000
Premium
$59,505
Rate
0.1790
2011/12
$37,320, 685
$500!000/$600,000
$51,503
0.1380
2010111
$36,005;935
$500,000 /$5x00,000
$41,+407
0.1150
2009/10
$22,49+1; 289
$500,000
$25,995
01150
2008/09
$21,173, 596
$450000
$25,403
0.1200
2007/08
$201066,743
$450,OOO
$24;080
0.1250
2006/07
$14663,445
$450,000
$23,329
0.1250
2005/06
$18,014,517
$450,000
$22,533
0.1250
2004/05
$17,117,579
$4501000
$21,689
0.1220
2003/04
$17,117, 579
$400,000
$26,532
0.1550
2002/03
$16,215,344
$400,000
$25,134
0.1550
2001 /02
$15,395;087
$400,000
$15,041
0.0980
2000/01
$14,325,457
$400,000
$12,105
0.0845
1999/00
$14,617,494
6400,000
$13,010
011890
'1998/99
$13,423,771
$400,000
$12,587
0.0937
1997/98
$13,061, 678
$400,000
$15,165
0.1161
1996/97
$12,731,058
$404,000
$15.061
0.1123
1995/96
$12,427,146
.$400 ;000
$14,801
0.1191
1994195
$12,033,330
$400,000
$14;332
0.1191
1993/94
$11695,318
$400,000
$13,50:5
0.1299
TOTAL PREMIUM $482,730