8.2. SR 12-19-2011 - Laserfiche WebLink

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LIBERTY INSURANCE AGENCY 1560 Hart Blvd. Monticello, MN 55362 December 12,2011 To: Honorable Mayor & Council Persons City of Elk River Thank you for making time on your agenda for December 19th meeting to review the City's 2011 League of Minnesota Cities Insurance Trust proposal. It's been a pleasure, as always, to work with the fine City staff. Preparing the insurance renewal for the City and ERMU is a big job, but, Tim, Lori, and Theresa make it a smooth process. Although the official package renewal date is July 1St, coverage has been under binder and now awaits your final approval. Workers Compensation coverage renewed on 10/O1/11. As you can see from the enclosed premium summary and comparison, there is a significant increase in premium cost for this year. This is without any changes we may recommend the Council consider. The package coverages including, Property, Autos, Municipal Liability, etc. come with an increase of about $20,700. This is due largely to a liability surcharge of $23,000 as a result of the landfill claim costs. These figures are at the current deductible of $10,000 Each Occurrence/$40,000 Aggregate and $1,000 "maintenance" deductible thereafter. Workers Compensation coverage has also increased in cost. The Experience Modifier has increased several points and the League also took some rate increases in a number of classes. Workers comp is now written with a $10,000 deductible which applies to medical costs only. Several additional points that may be of interest, and then should you have questions, I will be happy to address them; 1) League rates did not change significantly for 2011 renewals. Property rates decreased about 4%, auto physical damage rates also decreased. Property values did not change much either. We are still awaiting the completion of the League's appraisal process and will then make any needed changes in values. 2) The City received a dividend of $ 53,339 from League of Minnesota Cities Insurance Trust in December, 2010. The City should receive the 2011 dividend any day, and hopefully, it is equally as favorable. The League has also decided to declare a Workers compensation dividend, which will be sent out next April. 3) The liability limit is now at the new tort limit of $1,500,000 for any one "occurrence". The City has declined the addition of Excess Liability in the past, but should the Council wish to reconsider, we have a quote for an additional $1 Million in limits at a cost of $ 60,011 including Liquor Liability, and $58,025 without Liquor.