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'^~( ~~ ITEM 5.1. <br />~~ <br />ity of ~~ MEMORANDUM <br />l~ ~ TO: Mayor & City Council <br />Rover <br />FROM: Lori Johnson, Assistant City <br />Administrator <br />DATE: September 18, 1995 <br />SUBJECT: Property, Liability, Worker's <br />Compensation, and Other Insurance <br />Renewals <br />The city's worker's compensation, property, liability, boiler and machinery, <br />and other insurance policies are subject to renewal on October 1, 1995. Dan <br />Greene of First National Insurance Agency of Elk River will be at Monday's <br />meeting to present renewal information and answer questions the Council <br />may have. Consistent with past years, the City requested quotes from all <br />carriers writing municipal coverage. Once again the League of Minnesota <br />Cities Insurance Trust quoted the broadest coverage at the lowest rate. <br />Copies of the LMCIT quotes are attached for your review. Also attached is a <br />recent publication from the LMCIT on why it is beneficial to remain with <br />• their program. <br />The Council will be asked to approve the worker's compensation contract and <br />the property, liability and other insurance coverage contract. In addition, as <br />was the case last year, there will be several other issues which the Council <br />will be asked to consider. Although much of the information will be <br />presented verbally, this memo outlines some of the issues to be discussed. <br />Worher's Compensation Insurance <br />The League of Minnesota Cities Insurance Trust has submitted a quote for <br />worker's compensation insurance beginning October 1, 1995. The renewal <br />shows an experience modification of .82; this is down from .89 the previous <br />year. For the first time last year the city enrolled in the deductible option <br />with a $2500 per occurrence deductible resulting in a premium reduction of <br />$10,015. To date, for claims incurred in 1995, the city has paid deductibles of <br />$3,985.30. A summary of the claims is attached for your information. As you <br />can see, most of our claims are relatively small, usually less than $1,000. <br />The $2,500 deductible will result in a premium savings of $10,059 on the <br />upcoming renewal. If the deductible per occurrence is increased to $5,000, an <br />additional savings of $3,353 would be realized. <br /> <br />13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 <br />