HomeMy WebLinkAbout~Master - Excess Workers Compensation Insurance renewal RESOLUTION NO. 16-332
RESOLUTION APPROVING RENEWAL OF EXCESS WORKERS'
COMPENSATION INSURANCE
FOR THE CITY OF AMES
WHEREAS, in order to reduce the financial risk of catastrophic self-insured workers
compensation claims,the City began purchasing Excess Workers'Compensation Insurance coverage
brokered by Holmes Murphy on July 1, 2010; 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,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, 2016, and it has provided a renewal quotation through Holmes
Murphy for the same level of coverages; and,
WHEREAS, 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, the City's premium quote for FY 2016/17 is an increase of 5.8% over the
current premium, and MWECC has also provided an option for the City to increase the per claim
self-insured threshold from $500,000 per claim to $550,000 per claim; and,
WHEREAS, the Risk Management program's Workers' Compensation budget for FY
2016/17 is $101,795,which is enough to cover the premium under either the"status quo"option of
$99,599 or the option with an increased self-insured threshold of$94,124.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the quote from Holmes Murphy&Associates for coverage with Midwest Employers Casualty
Company, with the same coverage types and limits as expiring, at a renewal premium of$99,599,
is hereby approved.
ADOPTED THIS 14th day of June, 2016.
a) -lid4o A. tom• 67--
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Nelson
Seconded by: Betcher
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Nelson, Orazem
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 14th day of June, 2016.