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Excess Workers' Compensation Coverage for RTA Employees
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DESCRIPTION: Renewal of Excess Workers' Compensation Coverage for RTA Employees |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
Authorize the Chief Executive Officer to proceed with renewal of Excess Workers’ Compensation insurance coverage for all RTA employees for the policy period of 12/20/2021-12/20/2022.
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ISSUE/BACKGROUND:
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Under Louisiana law, every employer is required to carry workers’ compensation insurance or must be approved for self-insurance. All employees, full- or part-time, shall be covered. Two years ago, RTA employees, all classified as administrative, were covered under a first-dollar workers’ compensation program through LWCC, the Louisiana Workers’ Compensation Corporation, with a corresponding minimal cost in premium. However, with the transition of Transdev employees to the RTA last year, the bulk of whom are operational, the cost of such a program with LWCC became prohibitive. As such, in December 2020, RTA moved to a self- insurance program managed by a third-party administrator, with excess workers’ compensation insurance in place for only the most severe or catastrophic claims. This coverage, for policy period 12/20/20-12/20/21, was placed with Safety National Casualty Company.
Request for approval is sought today for renewal of this excess workers’ compensation coverage with Safety National, which has provided the most competitive and affordable quote for such coverage
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DISCUSSION:
The RTA insurance broker of record, The Kennedy Financial Group of Louisiana, Inc., has obtained
two (2) excess workers’ compensation quotations. One is from the incumbent Safety National Casualty Corporation, an admitted carrier, rated A++ Superior by AM Best, and the other from Midwest Employers Casualty Company, an admitted carrier, rated A+ Superior by AM Best.
Both carriers have provided quotes with Self-Insured Retentions [“SIRs”] of $1,000,000, with limits of
$1,000,000.
Note that the RTA insurance broker of record approached all potential Excess Workers’ Compensation carriers writing in Louisiana. Other than the incumbent Safety National Midwest Employers Casualty Company, Midwest Employers Casualty Company was the only entity that offered a quote.
Staff and broker have reviewed the two quotes and recommend maintaining the Excess Workers’ Compensation coverage with Safety National Casualty Corporation.
Therefore, staff and broker hereby recommend selection of Safety National Casualty Corporation for renewal of RTA excess workers’ compensation coverage. The annual premium cost, covering an estimated 850 RTA employees, is $201,539.00.
FINANCIAL IMPACT:
$201,539.00
Funds for this contract are available from the RTA Operational budget.
NEXT STEPS:
Proceed with renewal of Excess Workers’ Compensation insurance coverage with Safety National Casualty Corporation as recommended above.
ATTACHMENTS:
• Resolution for Contract Award of Excess Workers’ Compensation Coverage
• Excess Workers’ Compensation Insurance Options [12/20/21-12/20/22]: Safety National Casualty Corporation and Midwest Employers Casualty Company
• Award Routing Sheet
Prepared By: Marc Popkin
Title: Risk Analyst
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
Reviewed By: Mark A. Major
Title: Deputy CEO, Administration and Finance
11/5/2021
Alex Wiggins Date
Chief Executive Officer