HomeMy WebLinkAbout~Master - Contract for Excess Workers' Compensation insurance RESOLUTION NO. 14-334
RESOLUTION APPROVING CONTRACT FOR
EXCESS WORKERS' COMPENSATION INSURANCE FOR FY 2014/15
FOR THE CITY OF AMES,IOWA
WHEREAS,the City purchases excess Workers'Compensation insurance coverage from a broker,
Holmes Murphy & Associates, and this coverage limits the City's self-insured workers compensation
claims (including police and firefighter 411 disability claims) to a maximum dollar amount per claim,
above which Safety National pays 100% as the selected insurance provider; and,
WHEREAS,the City's current policy with Safety National will expire on June 30,2014,and the
renewal quotation is based on the City's estimated FY 2014/15 payroll (approximately $38.47 million)
divided by 100 and multiplied by the insurer's rate; and,
WHEREAS,the City's 2014/15 Budget anticipated the renewal cost to be $90,000, and the price
quoted for 2014/15 is $88,485; and,
WHEREAS, Excess Workers' Compensation rates are affected by past claims experience and
national trends of overall claims experience, as well as by medical cost inflation; and,
WHEREAS,according to the City's broker,Ames'rates are impacted more by national cost trends
than the City's own experience, especially in the police and fire classifications; and,
WHEREAS, the16.9% premium increase is a function of a rate increase resulting both from
national trends and from payroll increases; and,
WHEREAS, each year the broker searches the limited U.S. marketplace for viable alternatives,
but the marketplace for this type of coverage is very limited to only two or three insurance companies;and,
WHEREAS, there were no other insurance companies that provided comparable rates or levels
of coverage; and,
WHEREAS, each workers compensation claim is fully covered by Safety National's excess
coverage if it exceeds a $500,000.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Ames,Iowa,that the
contract with Safety National for Excess Workers' Compensation Insurance at an annual premium of
$88,845 is hereby approved.
ADOPTED THIS loth day of June, 2014.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Goodman
Seconded by: Corrieri
Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 1 Ot' day of June, 2014.