CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the recommendation by Alliant Insurance Services to award Excess Workers Compensation coverage to Midwest Employers Casualty Company for a two-year term and an amount not to exceed $102,479.40.
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Insurance policies for the City are maintained through Alliant Insurance Services. As the City's insurance broker, Alliant Insurances works on behalf of the City of Naperville to procure options on various insurance policies before providing a final recommendation to the City for approval.
The City's Excess Workers Compensation insurance policy expired March 1, 2018. Alliant issued a Request for Proposal (RFP) during their regular marketing process in 2016 for Excess Workers Compensation insurance and received proposals from the following carriers:
* Safety National
* Midlands Management Corp.
* Chubb
* Midwest Employers Casualty
* Arch Capital Group
Excess Workers Compensation insurance provides coverage to employees injured while at work, including coverage for medical costs and lost wages. Additionally, the policy provides liability protection to the City, covering expenses related to attorney fees, court costs and rulings, in the event of a lawsuit by an injured employee or family member of an injured employee.
Midwest Employers Casualty has provided Excess Worker's Compensation coverage to the City since 2016 and maintains strong ratings by Standard & Poor's and A.M. Best. This policy carries a $2 million deductible with Midwest Employers Casualty covering and additional $10 million beyond the retention, if necessary. To date, the City has not exceeded the deductible to trigger the policy.
DISCUSSION:
Midwest Employers Casualty Company provided two options for coverage, including a one-year and two-year agreement. Both options provide the same coverage for an annual premium of $51...
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