HomeMy WebLinkAbout19 - Excess Workers Compensation Insurance RenewalCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 19
February 24, 2009
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Human Resources, Lauren Farley, Risk Manager, (949) 644 -3302,
Ifarleyacity. newport- beach.ca. us
SUBJECT: Excess Workers Compensation (WC) Insurance Renewal
Issue:
Does the Council approve the cost of $325,002 for expiring excess workers
compensation insurance coverage?
Recommendation:
Approve the renewal of the excess workers compensation coverage for a twelve -month
policy with a self- insured retention (SIR) of $1 million with statutory coverage limits and
premium outlined below.
Back4round:
The City is self- insured for workers compensation and purchases excess workers
compensation insurance as a risk - financing tool to protect against catastrophic loss.
Renewal Quotation:
The City's workers compensation program is viewed by the insurance carriers as an
excellent risk (during this policy period we did not have a single claim that exceeded our
self insured retention limit of $1 million). The City continues to be viewed as a good risk
by the carriers based on our loss history and the administration of our workers
compensation program. Our loss ratio for the expiring policy is 0 %.
Staff recommends the renewal policy from Safety National Casualty Corporation as
outlined below:
Excess Workers Compensation (WC) Insurance Renewal
February 24, 2009
Page 2
Coveraue Limits
Carrier SIR WC & Employers Liability Premium
Safety National $1,000,000 $1,000,000 $325,002
Fundina Availability:
Funds which cover the recommended expenditure are in the Internal Services Budget —
Insurance Reserve Fund 6010 -8638.
Prepared by:
Sheri Anderson, Sr. HR Analyst
Submitted by:
Terri L. Cassidy, HR Director
Lauren