Memorandum

City of Lawrence

TO:	David L. Corliss – City Manager
FROM:	Michael Bennett – Risk Manager
CC:	Cynthia Wagner– Assistant City Manager Diane Stoddard – Assistant City Manager
Date:	December 7, 2011
RE:	2012 Excess Workers’ Compensation Insurance Renewals

The Office of Risk Management administers the City’s self-insured, self-administered workers compensation program.  One of the items purchased by the City is “Excess Workers Compensation Insurance” coverage.   The City maintains a self-insured retention of $750,000.  The City pays the first $750,000 of any workers compensation claim, the excess carrier pays next $1,000,000 in coverage.  Any costs in excess of $1,750,000 would be the responsibility of the City. The current policy expires December 31, 2011.

Renewals were sent to two different brokers for comparative quotes: HRH Willis and the Hays Companies.  HRH Willis has brokered this policy for the last several years and HRH Willis submitted the best evaluated renewal quote for 2012 coverage. 

Last year the City paid $41,180 plus a $250 service fee for this policy.  This year I am proud to inform you that, despite a slight 4%-6% nationwide uptrend in the market, we were able to reduce the premium from $41,180 to $40,779.  There is still a $250 service fee.

Recommended Action

Staff recommends renewing coverage for Excess Workers’ Compensation Insurance with Safety National for the insurance period of 1/1/12 to 12/31/12 for an estimated premium of $40,779.  Should you have further questions, please do not hesitate to contact my office.