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HomeMy WebLinkAboutCC Resolution 26-13397 - Excess Workers Compensation Coverage Contract ExtensionRESOLUTION NO. 26-13397 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL APPROVING AN EXTENSION OF AN AGREEMENT AND AUTHORIZING THE CITY MANAGER TO EXECUTE NECESSARY DOCUMENTS WITH MIDWEST EMPLOYERS' CASUALTY COMPANY TO PROVIDE EXCESS WORKERS' COMPENSATION LIABILITY COVERAGE FOR FISCAL YEARS 2027 AND 2028 WHEREAS, the City of Campbell (City) currently contracts with Midwest Employers Casualty Company (Midwest Employers) for Excess Workers' Compensation Insurance Coverage; and WHEREAS, the City received an offer from Midwest Employers to renew its current contract with Midwest Employers for the term of July 1, 2026, to June 30, 2028, for an estimated premium amount of $132,240 per year; and WHEREAS, the City has taken into consideration the current market and the fact that insurance rates are seeing an average increase of between 5-10%; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell does hereby approve an extension of its current agreement with Midwest Employers and authorizes the City Manager to execute any necessary documents and amendment with Midwest Employers to provide the City with Excess Workers' Compensation Insurance Coverage for two years, effective July 1, 2026, through June 30, 2028, for an estimated premium of $132,240 per year. PASSED AND ADOPTED this 16th day of June 2026, by the following roll call vote: AYES: Councilmembers: Lopez, Hines, Scozzola, Bybee, Furtado NOES: Councilmembers: None ABSENT: Councilmembers: None APPROVED: Daniel E. urtado, Mayor ATTEST: W640 &66��A Andrea Sar6iers, City Clerk Business Insurance Consulting and Brokerage Services City of Campbell July 1, 2026 to July 1, 2027 Presented by: Charlotte A Weddell CISR CIC CPIW CA License 0800987 Leavitt — Pacific Insurance Brokers CA License #OD79674 A member of the Leavitt Group Indemnity Coverage Provided: Excess Workers' Compensation and Employers Liability Indemnity Insurance Company: Midwest Employers Casualty Co. — A.M. Best: A++ XV Policy Period: 7 /1 /26 to 7/1 /28 (Two -Year Term**) Annual Employer's Deposit Rate per Limit of Liability Self -Insured and $100 of Liability Sub -Limit Retention Minimum Payroll $25,000,000 $1,000,000 $1,000,000 $132,240** 0.4568 $238,032 **Two annual installments of $132,240 apply **Two-year term means no paperwork needed for the 2027-8 policy term. Policy will continue with just payment of the 2027 installment. Terms and Conditions 1) The premium is based on an estimated annual remuneration of $28,949,216 (Up about 7% over last year) . 2) State of operations: California 3) Midwest Employers Casualty Co. quotes are subject to their policy form and the following endorsements: CMB-11 Amendment to Schedule Item 11, CMB-160 Foreign, CMB-199-CA Policyholder Disclosure Notice of Terrorism Insurance, ISI-254-EXC Aircraft Exclusion, ISI-260 Authorized Volunteers, ISI-261 Voluntary Compensation, ISI-266 Endemic Disease and Repatriation. ISI-CA (02-21) California Mandatory Endorsement CMB-6-CLS Amendment to Schedule Item 6 (applies to split retention quote). In order to bind coverage, we will need a written request by 6/25/2026.