HomeMy WebLinkAbout13 Award Contract for Property Liability and Workers'Agenda Item #13
T o:
From:
Date:
Subject:
Board o f Directors
Kim Ha rris
May 20, 2 015
Considerat ion of t he Award of a Cont ract for Property, Liability and
Workers' Compe nsatio n Insurance
A CTION
1. WHY T HIS MAT T ER IS BEFORE T HE BOARD
The District's annual property, l i ability a nd wo rkers' compensati on i nsurance coverage
ends June 1, 2015 and must be renewe d.
2. HIST ORY
In February, 2015, the Distri ct Board of Direc tors awa rded the contract for i nsurance
brokerage servi ces for annual property, l iabi l i ty and workers’ compensation to
InterW est for a one-year term.
3. NEW INFORMAT ION
The Di stri ct worked with Matt Bauer and Ton y Pozas with InterW est to complete the
necessary l etters and appl i cati ons to cha nge insu rance brokers and to obtain
competi ti ve bids for the insurance packa ge.
InterW est solicited quotes from vari ous i nsur ance compani es and then sel ected the
carriers based on price and rating of the company. The quotes received are
summari zed below:
Covera ge Company 20 14/15 2015/16
General
Liabi l i ty
One Beacon
$147,73 9
$155,007
Excess Liability AW AC
$22,900
$22,900
(esti mated)
W orkers' Comp AIG
$165,37 8
$279,177
Earthquake Landmark/Essex
$80,419
$80,419
Crime Chubb
$4,543
$4,543
Pollution Stead fast
$6,289
$6,289
T otal $42 7,268 $548,33 5
Ki m Harr i s Mi chael D. Holley
Human Resource Ma nag er General Manager
The proposed property, general l i ability, and workers' compensation premium cost is
$548,33 5, which i s an approximatel y 28% inc rease fro m the prior year's cost. It i s on
target with the remainder of the FY15 Budg et and wi l l be taken into consi derati on
when planning the FY16 Budget.
The workers’ compensation premium increas e (69%) is mainly due to the si gnifi cant
i ncrease in the experienced modi fication fa ctor (X-Mod) from 0.73 to 1.3 0 that is
determined by the previ ous three years of clai ms.
4. FISCAL IMPACT
The proposed property, general l i ability, and workers' compensation premium cost is
$548,33 5, which is approximately 28% increa se from the prior year's cost. It is in-line
with the budgeted insur ance expense for the remai nder of the FY15 Budget and will
be taken i nto consi derati on when planni ng the FY16 Budget.
5. RECOMMENDAT ION
Award contracts presented in the InterW est Renewal Proposal for the property,
l iability, and workers' co mpensati on insuranc e for the period begi nning June 1, 2015
and end ing June 1, 2016.