CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the recommendation by Alliant Insurance Services to award Excess Workers' Compensation Insurance coverage to Midwest Employers Casualty Company for an amount not to exceed $185,326 and for a two-year term
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DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Director of Finance
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Insurance policies for the City are maintained through Alliant Insurance Services. As the City's insurance broker, Alliant Insurance 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.
Excess Workers' Compensation Insurance covers employees injured while at work, including coverage for medical costs and lost wages, for claims above the City's self-insured limits. 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 began providing Excess Worker's Compensation Insurance coverage to the City in 2016 and maintains strong ratings by Standard & Poor's and A.M. Best. The proposed policy carries a $2,000,000 self-insured retention with Midwest Employers Casualty providing Statutory Workers' Compensation Limits and $1,000,000 in Employer's Liability beyond the retention, if necessary. To date, the City has not exceeded the deductible to trigger the policy.
The City's current Excess Workers' Compensation Insurance policy expires on March 1, 2026.
DISCUSSION:
Midwest Employers Casualty Company provided a one-year and a two-year renewal option. The one-year renewal option results in a 2026 premium of $92,663. The two-year option locks the insured rate, which is calculated as a percentage of payroll, for the two-year period. The premiums for 2026 and 2027 are later finalized b...
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