The URL can be used to link to this page

Home My WebLink About~Master - Approving Excess Workers' Compensation Insurance RESOLUTION NO. 21-312 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, 2021, and MWECC provided a renewal quotation through Holmes Murphy; and, WHEREAS, the City's current policy includes a per-claim threshold of$500,000, and the per-claim threshold is the amount of individual claim must exceed before the excess insurance provides coverage; and, WHEREAS,Holmes Murphyreceived a quote from the incumbent carrier(MWECC)as well as Safety National; and, WHEREAS, MWECC had quoted a premium of$121,601, which is a 4.8% increase over the current coverage;unfortunately,MWECC has also proposed an increase to the claim threshold, but only for police, fire, and electric workers; and, WHEREAS, because no carrier will write coverage for the existing threshold amounts,the City's only choice is to accept a higher exposure in the event of major police,fire,or electric claims; and, WHEREAS, the City's budget for FY 2021/22 includes $127,545 in funding for this coverage. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the quote for Excess Workers' Compensation Insurance provided by Midwest Employers Casualty Company,brokered by Holmes Murphy&Associates,in the amount of$121,601,is hereby approved. ADOPTED THIS 8`' day of June, 2021. Diane R. Voss, City Clerk John A. Haila, Mayor Introduced by: Corrieri 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 8t' day of June, 2021.