HomeMy WebLinkAbout~Master - Contract for Excess Workers Compensation for 2013/14 RESOLUTION NO. 13-309
RESOLUTION APPROVING EXCESS WORKERS' COMPENSATION INSURANCE
FOR 2013/14
FOR THE CITY OF AMES,IOWA
WHEREAS,the Citypurchases Excess Workers'Compensation insurance coverage through
Safety National Insurance Company, and this coverage limits the City's self-insured workers
compensation claims (including police and firefighter 411 disability claims) to a maximum dollar
amount, above which Safety National fully insures the claim; and,
WHEREAS, the City's current policy will expire on June 30, 2013, and Safety National
provided a renewal quotation based on the City's estimated FY 2013/14 payroll times the insurer's
rate; and,
WHEREAS, Excess Workers' Compensation rates are typically affected by past claims
experience and national trends of overall claims experience and medical cost inflation; and,
WHEREAS, according to the underwriter, Ames' rates are impacted this year more by
national cost trends,especially in the police and fire classifications,than its own claim experience;
and,
WHEREAS,each workers'compensation claim is covered 100%by Safety National's excess
coverage if it exceeds a$500,000; and,
WHEREAS, the City's 2013/14 Budget anticipated the renewal cost to be $71,208. The
budget shortfall will be added to departmental payments to the Risk Management Fund for this
purpose.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the contract with Safety National Insurance Company for Excess Workers' Compensation
insurance for 2013/14 at an annual premium of$75,663 is hereby approved.
ADOPTED THIS 25th day of June, 2013.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor Jf
Introduced by: Davis
Seconded by: Goodman
Voting aye: Davis, Goodman, Larson, Szopinski, Wacha
Voting nay: None Absent: Orazem
Resolution declared adopted and signed by the Mayor this 25th day of June, 2013.