5.1. SR 09-05-1995 - Laserfiche WebLink

Home Browse Search

As part of the insurance presentation last year the Council was made aware . of a managed care option which provides an additional five percent premium credit. The Council did not approve the managed care option last year, however, there are some cases in which the employees may have received more appropriate care had a managed care option been in place. The managed care program helps employees through the process of dealing with worker's compensation and ensuring that the injured employee receives appropriate and timely medical attention. It does require that employees be treated by network providers. In most cases the local providers are part of the network. It is anticipated that managed care will be required in the future. The Council should decide whether or not to implement the managed care program. Property Liability and Other Insurance Attached is a renewal premium summary for property, liability, boiler and machinery, and other insurance coverage. The total 1995-96 premium is $188,664 which is a decrease of over $8,000 from the 1994-95 premium. This is in spite of the fact that there is additional property to be insured and revenues and expenditures have increased which are the basis for a portion of the premiums. The premium quoted includes coverage for the Elk River Municipal Utilities. The main reason for the decrease is because a large • claim which was to be on our record for three years was determined to be a shock loss, meaning it was a highly unusual, one-time occurrence , so it was not factored in as a loss when our renewal rates were determined. Last year the City Council approved the purchase of Open Meeting Law coverage. The cost of that coverage for the upcoming year is $1,837. Excess liability coverage was also discussed last year. Due to the high cost of the coverage the City Council chose not to purchase excess liability. The 1995-96 quote for excess liability without waiver of immunity is $32,360 and with waiver of immunity is $43,888. Last year City Attorney Peter Beck reviewed the need for excess liability. He was unable to find areas of potential liability that were not already covered by other policies. If the Council wishes, additional research can be done to determine whether it is necessary to purchase excess liability. Summary At Monday night's meeting the City Council is asked to approve the October 1, 1995, to October 1, 1996, worker's compensation policy, property, liability, open meeting law, and other insurance coverage with League of Minnesota Cities Insurance Trust. In addition, the Council needs to determine the level of deductible for worker's compensation insurance. Other items to be discussed, but not requiring immediate action, include a managed care program for worker's compensation and excess liability coverage.