5.1. SR 11-06-2006 - Laserfiche WebLink

Home Browse Search

3) The recent builders' associations claim against the City has now resulted in a significant impact on the City's LMCIT pricing, beginning \vith the 2006 renewal. TlUs matter is considered a "land use" coverage claim. and is counted twice in the experience rating factor fonnula. And although the suit was settled successfully, defense costs were very significant and also count twice in the formula. The 'bottom line' is that this matter counts for about $25,000 in this year's Municipal and Auto Liability premium increases. It will impact the City's premium costs for the next two years as well. Two previous land use claims also have some impact in this year's premium calculations, but will fall off the experience period with the 2007 renewal. Overall, the City's claim experience has been excellent, as indicated by substantial dividends and the City's Workers Compensation experience. Loss control and risk management efforts are paying off. and the City continues to receive favorable inspection reports from the League. Claim frequency is low, which is what we all want to see. 4) Westbound Liquor was brought 'on-line' last fall, and now is being charged [or a full year's activity and exposure. Several other additions to the City's Property schedule have been made, including Pinewood Golf Course, several public works facility upgrades. as well as an approximate 6.5% inflationary increase recommended for this year by the League. Coverage for the construction of the new Library will be added as soon as the project is ready to go. Coverage needs and details for the new YMCA will also be considered when the time comes. The single most significant factor in this year's Property premium costs and coverages is the League's requirement that all "Property in the Open" (PIO) be scheduled, and a decision made as to what should be insured under the LMCIT policy, or self-insured. This activity resulted in an increase from previous years' PIO limits of about $1.6 Million additional asset value on the Property schedule, and about $9,300 in additional premium cost. PIO generally includes such items as athletic complex assets, playground equipment. skate parks, fencing, signs, etc. A copy of the spreadsheet for this year's property assets insured under the attached premium summary for 2006 is attached for your review. 5) The City is to be commended for its excellent safety and risk management efforts in the area Workers Compensation co\"erage and employee safety. The City's experience modifier was good last year, but is even better this year. The Modifier is .68, which translates into a 32% discount from the League's base rates, and an increase of 18% in the City's credit over last year. We have not included Workers Compensation coverage on the enclosed summary, as the renewal has already been processed; but we wanted to point out the importance of the new Modifier. It is rare to see one as low as .68.