CC PACKET 05121998 - Laserfiche WebLink

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MEMORANDUM DATE: May 1, 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 12, 1998, Council Meeting to discuss and finalize insurance coverage for June 1, 1997 - May 31, 1998. 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 $05,192. • This'amount-represents a decrease in premiums of($31,694) which is primarily due to decreases in general liability, workers' compensation premiums and liquor liability-coverage. As in previous years, no other insurance companies choose to compete with the League of Minnesota Cities Insurance Trust. Last years coverage is primarily duplicated, however, the League made serveral enhancements to the policy which improved coverage (see attachted). Workers' compensation costs continue to be a concern for all Minnesota businesses. 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 10% reduction in workers' comp premiums and assists the employee with developing a medical plan and treatment schedule. Four company's bid on the liquor liability coverage. This proved to beneficial because it created a competitive bidding environment that was lacking in previous years. The League did bid on the dram shop coverage, but, they were not competitive (neither was Star Insurance offered by Mn Hosipitality). Their quotes were almost double the cost of the other two bidders (First Specialty and Lexington) offered through Sunrise Park Insurance Agency. Since the cost for coverage from these two 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 just as important we are familiar with them).