Focus Area: Exceptional Services
Staff Contact: Erin Vader and Leslie Fortney
Subject: Consideration of excess workers compensation insurance for the self-funded City workers compensation program.
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Consideration of excess workers compensation insurance for the self-funded City workers compensation program.
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Summary:
The City of Olathe purchases excess workers compensation insurance coverage on an annual basis for the self-funded workers compensation program. This coverage is fully insured and provides financial protection for the City for claims which exceed the self-insured retention level of $500,000 for municipal employees and $750,000 for police and fire employees.
The City’s insurance broker, Gallagher, solicited bids from providers of excess workers compensation coverage. Two proposals were received including a proposal from the current carrier, Midwest Employers Casualty, and Safety National. Both proposals include the option for a two-year policy term. Gallagher recommends acceptance of the Safety National proposal based on a slightly lower premium ($159,065) compared to Midwest Employers Casualty ($164,000). Both policies offer similar terms, and both offer strong and reputable expertise.
Both Gallagher and the City’s risk management consultant Charlesworth Consulting believe this proposal is representative of current market conditions and reflects the City’s commitment to loss control and proactive claim and risk management.
Staff recommends Safety National for the excess workers compensation insurance program through December 31, 2026.
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Financial Impact:
The excess works compensation program is paid from the Workers Compensation Fund.
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Action Needed:
Approve the 2025 and 2026 insurance premiums in the amount of $159,065 per year to provide excess workers compensation insurance for the City of Olathe workers compensation program through December 31, 2026.
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Attachment(s):
None