Workers' Compensation Excess Insurance Renewal Fiscal Years 2016 Copyright 2014
City of Dubuque Consent Items # 35.
ITEM TITLE: Workers' Compensation Excess Insurance Renewal Fiscal
Year 2016
SUMMARY: City Manager recommending approval of the renewal rate
submitted by current carrier, Safety National, for Fiscal Year
2017 Workers' Compensation Express Insurance.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
FY17 Workers Compensation Excess Insurance City Manager Memo
Renewal-MVM Memo
FY17 Workers Comp Excess Insurance Renewal Staff Memo
Coverage Specifications - Excess Workers Comp Supporting Documentation
THE CITY OF Dubuque
UBE I
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Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Fiscal Year 2017 Workers Compensation Excess Insurance Renewal
DATE: June 10, 2016
Personnel Manager Randy Peck recommends City Council approval of a the renewal
rate of$.2138 per $100 of payroll (the current rate is $.2260 per $100 of payroll)
submitted by Safety National, keeping the self-insured limit (each accident) at $750,000
for Police Officers and Firefighters and increasing the self-insured retention limit (each
accident) from $600,000 to $750,000 for all other employees, including aircraft
operations employees, effective July 1, 2016 through June 30, 2017, for a total
estimated annual premium of$90,581, a reduction of $7,179 from the current annual
premium of $97,760.
1 concur with the recommendation and respectfully request Mayor and City Council
approval.
Micliael 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
THE CITY OF Dubuque
U A11-AmericaClty BUQUE
Masterpiece on the Mississippi 2007•2012•2013
TO: Michael C. Van Milligen, City Manager
FROM: Randy Peck, Personnel Manager
SUBJECT: Fiscal Year 2017 Workers Compensation Excess Insurance Renewal
DATE: June 8, 2016
Cottingham & Butler has presented the workers compensation excess insurance
renewal for coverage effective July 1, 2016. Quotes were received from Safety
National, our current carrier, and Midwest Employers Casualty. The following is a
summary of their quotes:
• Safety National - $101,512 (estimated annual premium)
• Midwest Employers Casualty - $191,000 (estimated annual premium)
Safety National proposes to increase their current rate per $100 of payroll from $.2260
to $.2396 per $100 of payroll. If we continue with the current self-insured retention limit
(each accident) of $750,000 for Police Officers and Firefighters and $600,000 for all
other employees including aircraft operations employees, the estimated annual
premium will be $101,512. Safety National presented an option to keep the current self-
insured retention limit (each accident) at $750,000 for Police Officers and Firefighters
and increase the self-insured retention limit (each accident) to $750,000 for all other
employees, including aircraft operations employees. The estimated annual premium for
this option is $90,581. The current estimated annual premium is $97,760.
1 recommend keeping the self-insured retention limit (each accident) at $750,000 for
Police Officers and Firefighters and increasing the self-insured retention limit (each
accident) from $600,000 to $750,000 for all other employees, including aircraft
operations employees.
The requested action is for the City Council to pass a motion approving the renewal rate
of $.2138 per $100 of payroll submitted by Safety National, keeping the self-insured limit
(each accident) at $750,000 for Police Officers and Firefighters and increasing the self-
insured retention limit (each accident) from $600,000 to $750,000 for all other
employee, including aircraft operations employees, effective July 1, 2016 through June
30, 2017, for a total estimated annual premium of$90,581.
RP:Imh
Cc: Jean Nachtman, Finance Director
( ity of Dubuque Proposal of Insurance
Coverage Specifications Excess Workers' Compensation
201512016
Company: Safety National Safety National Safety National
A.M.Best Rating: A+,XII A+,XIV A+,XIV
Status: Admitted Admitted Admitted
Rating and Status as of: August 20,2013 August 21,2015 August 21,2015
Policy Number: SP4053028 TBD TBD
Limits:
Workers'Compensation(each accident) Statutory Statutory Statutory
Employer's Liability(each accident) $1,000,000 $1,000,000 $1,000,000
Self Insured Retention(each accident):
All Other $600,000 $600,000 $750,000
Police/Fire $750,000 $750,000 $750,000
Aircraft Operations $600,000 $750,000 $750,000
Aggregate Protection None None None
Estimated Payroll $43,256,586 $42,367,202 $42,367,202
Rate per$100 of Payroll 0.2260 0.2396 0.2138
Policy Subject to Annual Audit: Yes or No Yes Yes Yes
Minimum Annual Premium $97,760 $101,512 $90,581
TOTAL ESTIMATED ANNUAL PREMIUM $97,760 $101,512 $90,581
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
4 Injuries outside of U.S.,its territories and possessions,and Canada
+ 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 awned,leased,or regularly chartered aircraft
ADDITIONAL.OPTIONS:
® Voluntary Compensation
® Foreign Voluntary Compensation and Employer's Liability Coverage
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