07-05-2011 - Placement of FY 2011-12 Excess Workers Compensati - Item 7 (2).doc
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Erin Patricia Hoppe, Director
Risk Management
SUBJECT: PAYMENT OF FY 2011-12 EXCESS WORKERS’ COMPENSATION INSURANCE COVERAGE
RECOMMENDATION:
Authorize payment of the City’s 2011/12 Excess Workers’ Compensation coverage with the Big Independent Cities Excess Pool (BICEP), in the amount of $69,514, to be paid from account 363.15.1530.6418
DISCUSSION:
On July 1, 2003, the City of West Covina became a member of BICEP. The current public agency members are the cities of Santa Ana, Huntington Beach, San Bernardino, Oxnard, and West
Covina. Through BICEP, the City’s Excess Workers’ Compensation Coverage is placed with the California State Association of Counties (CSAC) Excess Insurance Pool.
The City’s excess workers’ compensation coverage placed through BICEP/CSAC expired June 30, 2011. The 2010/11 premium cost was $64,820. The 2011-12 cost to renew this coverage is $69,514,
$4,694 more than 2010/11, and provides for a $1 million self-insured retention (SIR) or deductible, with total excess limits of $5,000,000 for Employers’ Liability and Statutory Limits
for Workers’ Compensation claims.
FISCAL IMPACT:
West Covina’s FY 2010/11 excess workers’ compensation insurance premium was $64,820. For FY 2011/12 coverage, BICEP has provided a premium quote of $69,514 which represents a $4,694
increase in premium from FY 2010/11. Funds have been included in the 2011-12 budget for payment of this premium.
____________________________
Erin Patricia Hoppe
Risk Manager/
Director of Risk Management