HomeMy WebLinkAbout~Master - Renewal of Excess Workers' Compensation Insurance Coverage RESOLUTION NO. 12-354
RESOLUTION APPROVING RENEWAL OF POLICY FOR
EXCESS WORKERS' COMPENSATION INSURANCE
FOR THE CITY OF AMES,IOWA
WHEREAS,the City of Ames purchases excess Workers'Compensation insurance coverage
through Safety National, and this coverage limits the City's self-insured workers' compensation
claims, including police and firefighter 411 disability claims, to set a collar amount, above which
Safety National fully insures the claim; and,
WHEREAS, the City's current policy will expire on June 30, 2012, and Safety National
provided a renewal quotation based on the City's estimated FY 2012/13 payroll times the insurer's
rate; and,
WHEREAS, each workers' compensation claim is covered by Safety National's excess
coverage if it meets or exceeds the$500,000 threshold for the 2012/13 proposal,and,previously,the
maximum exposure per claim for the City was $475,000; and,
WHEREAS,the City has a definite exposure to long-term medical disability expenses from
statutory 411 police and firefighter claims, as well as other major exposures across the City; and,
WHEREAS, the 2012/13 annual premium for this insurance will be $61,920; and,
WHEREAS, the City's 2012/13 budget anticipated the renewal cost to be $57,606, and the
budget shortfall for this coverage will be added to departmental payments to the Risk Management
Fund for this purpose for 2012/13.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that renewal of the Excess Workers' Compensation Insurance Policy with Safety National with the
increased$500,000 retention and annual premium of$61,920 is hereby approved.
ADOPTED THIS 26t' day of June, 2012.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Davis
Seconded by: Goodman
Voting aye: Davis, Goodman, Larson, Orazem, Szopinski, Wacha
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 26t'day of June, 2012.