Memorandum

City of Lawrence

City Manager’s Office

TO:	Dave Corliss, City Manager
FROM:	Cynthia Wagner, Assistant City Manager
CC:	Diane Stoddard, Assistant City Manager
DATE:	December 12, 2013
RE:	2014 Excess Workers Compensation Insurance Renewal

Background

The City maintains a self-insured retention of $750,000 for its worker’s compensation insurance program.  The City pays the first $750,000 of any workers compensation claim.  The excess carrier pays the next $1,000,000 in coverage.  Any costs in excess of $1,750,000 would be the responsibility of the City.

Renewal Process

Few carriers will write policies for small market municipal entities.  In the 2013 renewal process, the City bid this policy and had only one response.   Carriers will no longer write policies for high hazard occupations (particularly first responder’s, solid waste employees, and other occupations common in local governments) for premiums less than $50,000.  At that time, discussion with other brokers confirmed that carriers contacted indicated that they would not write a policy for less than $100,000. 

Based on this information, staff discussed options with our broker, HRH Willis and determined to complete an application with our current carrier, Safety National, to obtain a quote for a 2014 premium.  A quote of $54,763 was obtained for the 2014 policy year.

Recommended Action

Staff recommends renewing coverage for Excess Workers Compensation Insurance with Safety National for the insurance period of 1/1/2014 through 12/31/2014 in an amount of $54,763.