CC PACKET 05071996 - Laserfiche WebLink

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i • MEMORANDUM DATE: May 1, 1996 TO: Mike Mornson, 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 7, 1996, Council Work Session to discuss and finalize insurance coverage for June 1, 1996 - May 31, 1997. 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 $185,301. • This amount represents a decrease in premiums of ($56,042) which is primarily due to the decrease in St. Anthony's workers' comp premiums. In addition to the City's experience modification dropping from 1.23 to .89, the League decreased the rates for several different workers' comp categories for the upcoming year which combined caused a significant drop in cost. The lowest premium for On-Sale and Off-Sale liability coverage is being offered by Lexington Insurance Company which has the highest financial rating(A++15) any insurance company can receive. As in previous years, no other insurance companies choose to compete with the League of Minnesota Insurance Trust. Two company's (Park Glen& Lexington)bid on the liquor liability insurance. Last years carrier (Britamco) is no longer servicing Minnesota. Workers' compensation costs continue to be a concern for Minnesota businesses. To offset the increases in prior years, 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 helps return the employee back to work in a timely manner. • Last years coverage is primarily duplicated and a cost breakdown is attached for Councils' review.