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Renewal of Excess Workers' Compensation Insurance for RTA Employees [2023-2025]
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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 the Chief Executive Officer to proceed with renewal of Excess Workers' Compensation insurance coverage for all RTA employees for the policy period of 12/20/2023-12/20/2025 at a total cost of $455,742.00.
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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, must be covered. Until 2020, 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. For policy period 2022-2023, the Board approved Midwest Employers Casualty Company for optimal coverage.
Request for approval is sought today for a renewal of this excess workers' compensation insurance coverage with incumbent Midwest Employers Casualty Company, which has provided a highly competitive two-year quote for policy period 2023-2025.
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DISCUSSION:
The RTA insurance broker of record, The Kennedy Financial Group of Louisiana, Inc., has...
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