Workers' Compensation Excess Insurance Renewal FY 2015Masterpiece on the Mississippi
Dubuque
band
AI -America City
11111r
2007 • 2012 • 2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Fiscal Year 2015 Workers Compensation Excess Insurance Renewal
DATE: July 15, 2014
Personnel Manager Randy Peck recommends City Council approval of the renewal rate
of $.2226 per $100 of payroll submitted by Safety National for Fiscal Year 2015 Workers
Compensation Excess Insurance. The self-insured retention limit (each accident) for
police officers and firefighters is increasing from $600,000 to $750,000 and from
$500,000 to $600,000 (each accident) for all other employees effective July 1, 2014
through June 30, 2015. The current annual premium is $91,123, and with the new
retention limits, the total estimated annual premium for Fiscal Year 2015 is $93,166.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
bat44 .,
Mic ael 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
bad
11111/
2007 • 2012 .2013
TO:. Michael C. Van Milligen, City Manager_
FROM: Randy Peck, Personnel Manager �L/U�
SUBJECT: Fiscal Year 2015 Workers Compensation Excess Insurance Renewal
DATE: June 23, 2014
Cottingham and Butler has presented the workers compensation excess insurance
renewal for coverage effective July 1, 2014. Quotes were received from Safety
National, our current carrier, and Midwest Employers Casualty. The following is a
summary of their quotes:
Safety National — $103,266 (annual premium)
Midwest Employers Casualty - $110,000 - $225,000 (annual premium)
The current self-insured retention limit (each accident) is $600,000 for police officers
and firefighters and $500,000 for all other employees. Safety National provided two
retention limit options which I have attached for your review. I recommend option two
which will increase the self-insured retention limits (each accident) for police officers
and firefighters from $600,000 to $750,000 and from $500,000 to $600,000 for all other
employees. The current rate per $100 of payroll is $.2277. Option two provides a rate
of $`.2226 per $100 of payroll. The total estimated annual premium for option two is
$93,166. The current annual premium is $91,123.
The requested action is for the City Council to pass a motion approving the renewal rate
of $.2226 per $100 of payroll submitted by Safety National and increase the self-insured
retention limit (each accident) for police officers and firefighters from $600,000 to
$750,000 and from $500,000 to $600,000 for all other employees effective July 1, 2014
through June 30, 2015, for a total estimated annual premium of $93,166.
Cottingham and Butler has issued a binder to make sure there will be no lapse in
coverage on July 1, 2014
RP:Imh
Cc: Ken TeKippe, Finance Director
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DUSUQ
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Coverage Specifications 1 Excess Workers' Compensation
1 Proposal of Insurance
2013/2014
2014/2015 2014/2015
2014/2015
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
Policy Subject to Annual Audit: Yes or No
Minimum Annual Premium
TOTAL ESTIMATED ANNUAL PREMIUM
Safety National
A, XI
Admitted
March 5, 2013
Safety National
A+, XII
Admitted
August 20, 2013
Statutory Statutory
$1,000,000 $1,000,000
$500,000 $500,000
$600,000 $600,000
None None
$40,018,990 $41,224,100
0.2277 0.2505
Yes Yes
$91,123 $103,266
$91,123 $103,266
Safety National
A+, XII
Admitted
August 20, 2013
Option 1
Statutory
$1,000,000
$500,000
$750,000
None
$41,224,100
0.2342
Yes
$96,547
$96,547
Safety National
A+, XII
Admitted
August 20, 2013
Option 2
Statutory
$1,000,000
EXCLUSIONS INCLUDE BUT ARE NOT LIMITED TO:
• Punitive Damages
• Injury to employees knowingly illegally employed
♦ Intentional Injury
• Serious and willful misconduct of the employer including intentional acts or omissions resulting in an injury
• Injuries outside of U.S., its territories and possessions, and Canada
o Employment Related Practices
• Crew Members of any vessel
♦ Fines or Penalties
• Damages to any employee under the USL&H Act, the Federal Employer's Liability Act, or Migrant and Seasonal
Agricultural Worker Protection Act.
• Monopolistic States are not covered: North Dakota, Ohio, Washington, West Virginia, and Wyoming
♦ Failure to comply with any health, safety, or notification law or regulation
• Firefighter and Policy Officer Employees (see option for Medical Benefits Only)
• Relating to any employer owned, leased, or regularly chartered aircraft
ADDITIONAL OPTIONS:
® Voluntary Compensation
® Foreign Voluntary Compensation and Employer's Liability Coverage
$600,000
$750,000
None
$41,224,100
0.2226
Yes
$93,166
$93,166
Cottingham & Butler Risk Management 1 11