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AI- 3396

12. B. 5.

BOC Regular

Meeting Date:	12/03/2020
Workers Compensation Excess Contract Renewal
Submitted For:	Kim Archambault	FROM:	Kim Archambault, HR Director, Human Resources
Department:	Human Resources

Information

RESOLUTION:

Resolved the Calhoun County Board of Commissioners does hereby approve the 2021 Workers Compensation excess insurance renewal with Midwest Employers Casualty Group as presented, and authorizes the County Administrator/Controller to sign the renewal agreements.

RECOMMENDATION:

Resolved the Calhoun County Board of Commissioners does hereby approve the 2021 Workers Compensation excess insurance renewal agreement with Midwest Employers Casualty Group, as presented.

BACKGROUND:

The County is currently insured by Midwest Casualty Group for excess insurance that expires at the end of 2020. The County's broker, IBEX, did a market review but the only other carrier (Safety National) failed to quote because the rates would be over $90,000. The quote options from Midwest are attached and the recommendation is to select Option Two that continues with our current $600,000 Specific Retention and has a premium of $65,517 for both years (2021 & 2022). These rates are significantly higher than current ($45,216), however, locking these in for two years will protect against additional expected increases.

ALTERNATIVES:

The three alternatives through Midwest Casualty are included in the attachment.

SUMMARY:

Fiscal Impact

BUDGETARY IMPACT:

The excess insurance renewal agreement will cost $65,517. The current annual cost for 2020 is $45,216, so there will be an increase of $20,301 in 2021 and 2022. Opting for a two-year agreement will mitigate against larger anticipated increases in year two.

Attachments
Midwest Quote Packet