title
Renewal of Excess Workers’ Compensation Insurance for RTA Employees [2022-2023]
end
|
DESCRIPTION: Renewal of Excess Workers’ Compensation Insurance coverage for RTA employees |
AGENDA NO: Click or tap here to enter text. |
|
ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
Authorize Chief Executive Officer to proceed with renewal of Excess Workers’ Compensation insurance coverage for all RTA employees for the policy period of 12/20/2022-12/20/2023.
end
ISSUE/BACKGROUND:
body
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, must be covered. Three 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 in late 2020, the bulk of whom were 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. With Board approval, this coverage was initially placed with Safety National Casualty Company for policy period 2020-2021, and again, for policy period 2021-2022.
Request for approval is sought today for renewal of this excess workers’ compensation insurance coverage with Midwest Employers Casualty Company, which provides the most competitive and affordable quote for policy period 2022-2023.
end
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 Safety National Casualty Corporation, the incumbent carrier, and the other is from Midwest Employers Casualty Company. Both carriers are rated highly by A M 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 Casualty Corporation, Midwest Employers Casualty Company was the only entity that offered a quote.
The terms provided by each carrier are essentially the same. Safety National is quoting an annual premium of $204,496.00; Midwest Casualty is quoting an annual premium of $189,933.
Therefore, staff and broker hereby recommend selection of Midwest Employers Casualty Company for renewal of RTA excess workers’ compensation coverage.
FINANCIAL IMPACT:
$189,933.00
Funds for this contract are available from the RTA operational budget.
NEXT STEPS:
Proceed with renewal of excess workers’ compensation insurance coverage with Midwest Employers Casualty Company.
ATTACHMENTS:
• Resolution for Renewal of Workers’ Compensation Insurance for RTA Employees [2022-2023]
• Excess Workers’ Compensation Insurance Options [12/20/2022-12/20/2023]: Safety National Insurance Corporation and Midwest Employers Casualty Company
Prepared By: Marc Popkin
Title: Risk Analyst
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
Reviewed By: Mark A. Major
Title: Deputy CEO/Administration
11/4/2022
Alex Wiggins Date
Chief Executive Officer