8.2. SR 12-19-2011 - Laserfiche WebLink

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Coverage is, again, being renewed on the basis of waiver of the per claimant limit, but this too can be changed. Statute now provides that a payment for any one claimant can be limited to $500,000. If the Council is interested, the change is cost is nominal. Savings would be about 2% or perhaps $2,800 to reduce the per claimant limit to $500,000. 4) ERMU Equipment Breakdown coverage has again been included with this year's renewal. In the past, the generation equipment coverage was purchased separately from another company. We made the change in April, 2009. The current annual cost for the ERMU generation equipment's Equipment Breakdown coverage is about $42,745. 5) The City insures the YMCA facility and is reimbursed by the Y for costs. This year's cost is approximately $8,500. We will again assist City staff in allocating this back to the YMCA. 6) Workers Compensation coverage for the City renewed October 1, 2011. The Experience Modification factor has increased from .93 last year to .95 for this year. This means a 5% discount from the League's base rates. The trend for the City's Experience Modifier has been upward for the past several years, which means greater cost to the City. The City's Safety Committee has met and is reviewing and modifying training and equipment to help improve safety for the City's staff. The goal is to bring the modifier down again and save in premium costs. 7) The City changed to a special.. deductible plan three years ago - $10,000 per `occurrence'/$50,000 aggregate/$1,000 `maintenance' after reaching the $50,000 aggregate. Results so far have been very favorable. We have been able to reduce the Aggregate limit to $40,000 over the past several years due to favorable claim experience, and as a result, recommend the Council consider a higher "per Occurrence" limit of $20,000 with $40,000 Aggregate. This would save the City approximately $23,000 in premium costs; offsetting a good share of the increases under both the package and the workers comp. The City's claim history has been very good, and with good safety practices in place, it could be a good option for the City. This year's renewal, although a good one, is greater in cost. Given the City's history of claims, a focus on loss prevention, and an effort to save on expenses, City staff and I am recommending the Council consider the new deductible option. If the Council has other questions, we will, of course, be happy to address them. Liberty Insurance Agency and I appreciate the opportunity to work with the City of Elk River, ERMU, and the fine staff. We thank you for the continued business. Respectfully, Mary Mary Eberley, CPCU Client Executive