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HomeMy WebLinkAbout~Master - Excess Workers' Compensation Insurance RESOLUTION NO. 15-359 RESOLUTION APPROVING EXCESS WORKERS' COMPENSATION INSURANCE BROKERED BY HOLMES MURPHY& ASSOCIATES FOR THE CITY OF AMES,IOWA WHEREAS,the City began purchasing Excess Workers'Compensation Insurance coverage brokered by Holmes Murphy on July 1,2010,to reduce the financial risk of catastrophic self-insured workers' compensation claims; and, WHEREAS, this coverage limits the City's financial exposure for self-insured workers compensation claims (including police and firefighter Chapter 411 injury disability claims) to a maximum dollar amount per individual claim; and, WHEREAS,beginning with the FY 2014/15 coverage approved last year by the Council,this also includes an added layer of aggregate protection for multiple large claims exceeding a specified amount; and, WHEREAS, this coverage, which is provided by Midwest Employers Casualty Company (MWECC), will expire on June 30, 2015, and MWECC provided a renewal quotation through Holmes Murphy for the same level of coverages; and, WHEREAS, the cost is based on the City's estimated FY 2015/16 payroll (approximately $39.63 million) times the insurer's rate of$0.2375 per $100; and, WHEREAS, together, the individual claim and aggregate layer coverages protect the City against unlimited financial exposure for both large individual claims and catastrophic events where there are multiple injuries; 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, MWECC is pleased with the City's claims experience and stated that rates are impacted this year more by national medical and pharmaceutical cost trends than by the City's own claim experience; and, WHEREAS, although the cost is $2,624 over the amount budgeted for this coverage, that overage can easily be covered by savings in the property insurance quotation for FY 2015/16. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the coverage for Excess Workers' Compensation Insurance provided by Midwest Employers Casualty Company, brokered by Homes Murphy & Associates, in the amount of$94,124 for FY 2015/16 is hereby approved. ADOPTED THIS 9t'day of June, 2015. cd4�al a& A. tom• ��� Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Nelson Seconded by: Betcher Voting aye: Betcher, Corrieri, Gartin,Nelson, Orazem Voting nay: None Absent: Goodman Resolution declared adopted and signed by the Mayor this 9th day of June, 2015.