Laserfiche WebLink
MEMORANDUM <br /> DATE: May 20, 1993 <br /> TO: Thomas D. Burt, City Manager <br /> FROM: Roger Larson, Finance Director <br /> ITEM: LEAGUE OF MN CITIES INSURANCE RENEWAL <br /> Mr. Mark Flaten of American Risk Services will be present at the May 25, 1993, Council <br /> Meeting to discuss the League's proposal for insurance coverage June 1, 1993 - May 31, 1994. <br /> The attached information includes price quotations for property, auto, general liability and <br /> worker's compensation. The cost for maintaining our present coverage of $10,000 Deductible <br /> and $50,000 Aggregate is $256,093. <br /> This amount represents an increase in premiums of$30,977 which is primarily due to increases <br /> • in workers compensation costs ($13,392) and liquor liability coverage ($13,832). This 13.76% <br /> increase is based upon the following changes: <br /> 1) Workers Compensation <br /> A. 2.75% increase in wages in 1993. <br /> B. Police Officers reaching top of scale wage earnings. <br /> C. Experience modification from previous work comp claims. <br /> 2) Liquor Liability <br /> A. This increase is primarily caused from a 18.9% general increase <br /> in liquor liability insurance. Thus, cost per $100 of receipts <br /> increased from $1.58 to $1.88. <br /> 3) Property <br /> A. Increased property values due to inflation and purchase of <br /> new property's (3112 Silver Lake Road, etc.) <br /> Again, like in previous years, no other insurance companies chose to complete with the League <br /> of Minnesota Insurance Trust. The exception was Transcontinental, who quoted on liquor <br /> • liability coverage. Their quote exceeded Park Glen's cost by $15,000. <br />