HomeMy WebLinkAbout~Master - Approving Excess Workers' Compensation Insurance RESOLUTION NO. 20-333
RESOLUTION APPROVING EXCESS WORKERS'
COMPENSATION INSURANCE
FOR THE CITY OF AMES,IOWA
WHEREAS,the City of Ames began purchasing Excess Workers' Compensation Insurance
coverage brokered by Holmes Murphy on June 1, 2010,to reduce the financial risk of catastrophic
self-insured worker's compensation claims; and,
WHEREAS, the coverage limits the City's financial exposure for self-insured worker's
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, 2020, and MWECC provided a renewal quotation through
Holmes Murphy for the same level of coverages, as well as options for the City to increase the per-
claim self-insured threshold from $500,000 per claim to $550,000 or $600,000; and,
WHEREAS,increasing the threshold would increase the City's potential exposure;however,
the premium quotes are lower since the underwriter takes on less risk; and,
WHEREAS, in the time the City has had a relationship with its current broker(ten years);
however, a catastrophic incident could conceivably generate one or more individual claims
approaching this amount; and,
WHEREAS, the cost is based on the City's estimated FY 2020/21 payroll, and Excess
Workers Compensation rates are typically affected by past claim's experience and national trends
of overall claims experience and medical cost inflation; therefore,increased payroll is responsible
for the increase in premium; and,
WHEREAS, in analyzing the options, staff believes the reduced premium costs for taking
on a higher self-insured threshold are not sufficient to outweigh the increased risk.
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 Holmes Murphy&Associates,in the amount of$115,950,is hereby
approved.
ADOPTED THIS 23rd day of June, 2020.
� MA �UY�
Diane R. Voss, City Clerk John A. Haila, Mayor
Introduced by: Gartin
Seconded by: Betcher
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Martin
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 23'day of June, 2020.