5.8. SR 09-07-2004 - Laserfiche WebLink

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Excess L2'abili(y Coverage No staff recommendation as this is really a Council policy decision. Refer to the attached memo for costs to add coverage. No-Fault Sewer Backup Coverage At a cost of $12,775, the recommendation is not to add no-fault sewer backup coverage; however, this is a Council policy decision. There are very few times when tiffs coverage would have been used. Second, the new policy for Workers' Compensation beginning October 1, 2004 has been received. It shows an experience modification of .81, which is up slightly from last year's modification factor of .78, but still very good. Our safety program plays an important part in reducing work place injuries. There have been no sizeable claims in the last year; most claims are still less than $5,000 with many around $1,000 or less. The city previously had a $10,000 deductible amounting to a premium credit of 20%. The credit for the upcoming premium with the $10,000 is $35,305. Based on claims experience, the recommendation is that the $10,000 deductible remains in place. The city also receives a 3% credit for participating in the League's managed care program. This credit amounts to $5,296 for the upcoming year. The premium payable for the upcoming year is $117,794 compared to $97,353 last year. The increase is due mainly to increases in our estimated payroll but there were also some rate increases. As you can see, the main rate increases occurred in street construction, city shop and yard, and volunteer flrefighters. Action Requested The City Council is asked to consider the five options above and to consider renewal of the Workers' Compensation policy with the League of Minnesota Cities Insurance Trust, including managed care and a $10,000 deductible. S:\CouncilNLori\ 2004\ InsuranceRenewal090704.doc