CC PACKET 05231995 - Laserfiche WebLink

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MEMORANDUM DATE: May 18, 1995 TO: Mike Morrison, City Manager FROM: Roger Larson, Finance Director ITEM: LEAGUE OF MN CITIES INSURANCE RENEWAL Mr. Mark Flaten of American Risk Services will be present at the May 23, 1995, Council Meeting to discuss and finalize insurance coverage for June 1, 1995 - May 31, 1996. 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 $240,53 7. This amount represents an decrease in premiums of ($13,153) which is primarily due to a decrease in St. Anthony's workers comp modification (111 - 1.23) and Off-Sale liability dropped from $.57'per $100 of receipts to $.52. Again this year, the lowest premium for On-Sale and Off-Sale liability coverage occurs by splitting the coverage between two company's (Transcontinental & Britamco Underwriters). As in previous years, no other insurance companies choose to compete with the League of Minnesota Insurance Trust. A former liquor liability carrier (Park Glen) did bid on the Off-Sale liability coverage. Park Glen's quote was equal to Transcontinental's, however, based on a comparison of the two organizations, there is no incentive to change. Workers' compensation costs continue to be a concern for Minnesota businesses. To offset the increases in 1994, St. Anthony adopted the following workers compensation options: 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. B. $500 deductible per claim for medical costs only. This results in a 4% reduction in premiums. • Last year the savings in premium for the $500 deductible totaled $5,702 compared to actual medical costs of $1,846.43 for a net gain of $3,855.57.