CC PACKET 05251999 - Laserfiche WebLink

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MEMORANDUM DATE: May 18, 1998 TO: Mike Mornson, City Manager FROM: Roger Larson, Finance Director :ITEM: LEAGUE OF MN CITIES INSURANCE RENEWAL Mr. Mark Flaten of Berkley Risk Services will be present at the May 25, 1999, Council Meeting to discuss and finalize insurance coverage for June 1, 1999 - May 31, 2000. The attached information includes price quotations for property, auto, general liability, workers' compensation and liquor liability. The cost for maintaining our present coverage of $10,000 deductible and $50,000 aggregate totals $163,086. This amount represents an increase in premiums of $29,569,which is primarily due to increases in automobile, general liability and workers' compensation premiums., As in previous years, no other insurance companies chose to compete with.-the League of Minnesota Cities Insurance Trust. Last years coverage is primarily duplicated,, however, the League made enhancements to the policy, which improved coverage concerning Y2K issues. Workers' compensation costs continue to be a concern for all Minnesota businesses. The increase in the work-comp premium is due to an increase in St. Anthony's experience modification because of three major workers compensation claims in 1997/1998:`': To help rehabilitate employees in a timely manner, St. Anthony adopted a Managed Care Plan where employees who are injured on the job are assigned to a specific clinic for rehabilitation of their injury. This results in a 5% reduction in workers' comp premiums and assists the employee with developing a medical plan and treatment schedule. Three company's bid on the liquor liability coverage. This proved to beneficial because it creates a competitive bidding environment between vendors.. Since the cost for coverage from these three carriers is very close in price, it is in the best interest of City to maintain coverage through the incumbent carrier Lexington (they are familiar with our operations and are in the process of handling a major liquor liability claim).