97-233 Resolution No. 97-233
RESOLUTION
ACCEPTING THE PROPOSAL OF LUNDSTROM INSURANCE FOR
LIMITED SELF-INSURANCE PROGRAM
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Robert 0. Malm, Interim City Manager, be and is
hereby authorized and directed to accept the proposal on behalf
of the City of Elgin of Lundstrom Insurance for the city' s
limited self-insurance program for the period October 1, 1997
through September 30, 1998, a copy of which is attached hereto
and made a part hereof by reference.
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: September 24, 1997
Adopted: September 24 , 1997
Vote: Yeas 7 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
\,(y OF 6(0
Agenda Item No. 0 4
City of Elgin
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September 19, 1997
TO: Mayor and Members of the City Council
FROM: Robert O. Malm, Interim City Manager
SUBJECT: Increasing Umbrella Insurance Coverage
PURPOSE
The purpose of this memorandum is to provide Council with the
additional premium cost for increasing our Umbrella Liability
insurance coverage limits .
BACKGROUND
(eft' At your September 10th Committee of the Whole meeting, Council
requested cost information for increasing our Umbrella liabil-
ity insurance coverage limits .
As discussed, our current excess insurance policies provide
the City with a total of $7, 000,000/occurrence and $8, 000, 000
aggregate liability coverage.
Attached is a proposal from Lundstrom Insurance, which indi-
cates that each additional $1, 000,000 of umbrella liability
coverage will cost $2 , 000 in additional premium.
GROUPS/INTERESTED PERSONS CONTACTED
None.
FINANCIAL IMPACT
Taking into consideration the enhancements to our limited
self-insurance program that were recommended and approved by
Council at the last meeting, the City' s premium savings is
$23,287 compared to last year' s costs .
The proposed increase of $2,000,000 in umbrella liability
+. coverage would cost $4,000; this expense would be taken from
[ the above savings .
t
At
September 16, 1997
Mr. Mike Sarro
City Of Elgin
150 Dexter CT
Elgin, IL 60120
Dear Mike:
Following is a schedule of premiums for the Umbrella policy,
reflecting the additional premium charge for increasing the
policy limit in increments of $1, 000, 000 .
Note the City' s current Umbrella limit is at a limit of
$5, 000, 000 with a premium of $52, 000 .
POLICY LIMIT ADDITIONAL PREMIUM
rb. $6, 400, 004 $2, 000
$7, 000, 000 $4, 000
$8, 000, 000 $6, 000
Note that the Underlying Limits for the policies coverd by the
Umbrella policy are as follows:
General Liability: $2, 000, 000 Per Occurr./$3, 000, 000 Agg.
Auto: $2, 000, 000 Per Occurr.
Public Officials : $2, 000, 000 Each Claim/Aggregate
Law Enforcement : $2, 000, 000 Each Claim/Aggregate
Liquor Liability: $2, 000, 000 Per Occurr. /$3 , 000, 000 Agg.
Employee Benefits ; $1, 000, 000 Each Claim/$3, 000, 000 Agg.
Employers Liab. : $1, 000, 000 Each Accident
Mike upon review please identify which Umbrella Limit that the
City Council wants to have bound.
Sincere ,
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4hn Hamilton
ndstrom Insurance
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CITY OF ELGIN
150 DEXTER CT
ELGIN, IL 60120
PRESENTED BY:
J J
RONALD PAVLIK
LUNDSTROM INSURANCE
OCTOBER 1, 1997/98
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IN 'RODUCTION F TGIF AGENCY.
For over four decades, Lundstrom Insurance has provided personal and commercial insurance
services to a diverse client base of prestigious individuals and organizations. An intense
commitment to personal services is the hallmark of Lundstrom Insurance's success.
Lundstrom Insurance's client service is driven by the commitment to building and maintaining
long-term relationships rather than short-term profits. Each client receives ongoing services
which enhance the function and cost-effectiveness of their insurance and risk management
programs.
In a proactive vein, Lundstrom Insurance has already positioned resources to develop and
market the next generation of insurance products and financial services. Lundstrom Insurance
professionals are on the leading edge as changes occur in the financial services industry. Our
well-trained professionals are dedicated to the highest standards of excellence. By utilizing
the broad knowledge, experience and creativity of these professionals,Lundstrom Insurance is
able to provide a combination of sophisticated products and services.
The bottom line on Lundstrom Insurance's capabilities is clear: Protecting the assets and
earning power of your company from loss or destruction. The measure of our success is just
as straight forward: The minimization of adverse financial effects on your cash flow,Balance
Sheet and Profit and Loss Statement. We look forward to continue to demonstrate our
effectiveness as your broker and risk management partner.
Pik
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INTRODUCTION OF THE SERVICING TEAM
Lundstrom Insurance offers professional and experienced personnel, who stand ready at all
times to serve your organization in any capacity related to the insurance function. We strive
to attract high level employees that have demonstrated superior academic achievement,
reached a level of maturity to deal with complex problems, and have the desire to improve
through advanced training. We continually seek experienced personnel who can bring to us
unique skills and have developed a professionalism consistent with our high standards. Our
team approach allows us to provide dedicated and quality insurance, risk management and
claims service to all our clients. You are assured to receive the utmost in personal service.
We have organized the following service team approach:
Ron Pavlik - Account Executive. Supervision, as well as coordination, of the rest of the
staff serving their area of responsibility, lies with an agency principle. We assist your firm
with risk analysis including identification of exposures, recommend appropriate transfer of
risk, and proper use of self-insurance and/or deductibles. We believe risk analysis is at the
r!b' heart of your program.
Bill Beckmann, CPCU - Account Executive. Review of the insurance provisions in a
contract, lease or convention agreement provides an opportunity to examine the content,
accuracy and compliance of these documents.
John Hamilton - Account Executive. Maintaining a proper relationship with insurance
company contacts in order to provide the best combination of protection is essential. We will
negotiate with companies for comprehensive coverages and fair pricing. The markets or
carriers which we use, are selected based on their financial integrity, market share as it relates
to particular coverages, and quality of local support staff.
John Hamilton - Customer Service Representative. The primary contact provides timely
action of your daily service needs, including but not limited to, preparing invoices, processing
policy changes,reviewing audits and issuing automobile identification cards.
Heather Friedel- Claims Representative. At the time of a loss, we assist to make sure that
. the claim is presented in an appropriate and complete manner so that the loss settlement is fair
and satisfactory. We will provide pro-active assistance and support to you on all claims.
Whenever necessary, we will intervene in any coverage or monetary dispute between you and
an insurance carrier.
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Steven Daluge, MS, CSP - Certified Safety Professional. An expert review of company
safety engineering recommendations and guidelines in implementing them will be a great
j� benefit to your business. In some cases, if appropriate, we will assist you in having them
modified or adjusted.
Keith Lindley - Surety Bond Specialist. Complicated bond requirements are handled
expeditiously and professionally. We will review insurance requirements and suggest options
for compliance.
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Li RISK �VIANAGFMEN ,SRICESROIFD
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The Sales Risk Management Department of Lundstrom Insurance provides a variety of
`; services to meet the risk management needs of our diverse client base. These services
include,but are not limited to,the following:
• Risk analysis including identification of exposure, recommended appropriate transfer of
risk, and proper use of self-insurance and/or deductibles.
5 • Work on a team approach with a backup account executive and also an agency customer
service representative
• Prepare complete and accurate specifications to solicit the most comprehensive and
broadest coverages and programs available, in order to provide excellent value.
• Maintenance of a proper relationship with insurance companies. The markets or carriers
which we use are selected based on their financial integrity, market share as it relates to
particular coverages, and quality of local support staff.
• Work to "sell" your account to the insurance company underwriters by presenting the best
and most comprehensive picture of your account.
• Present the results of our efforts in a clear manner, and with the benefit of our experience
provide recommendations.
• Review all insurance provisions of leases, contracts, or other agreements, for adequacy,
1 compliance, and any additional cost or coverages that may be required, and recommend
modifications as needed and appropriate.
fl • Assist in negotiating insurance problems with landlords, tenants, contractors, consultants,
0 etc.
• The issuance of Certificates of Insurance, Automobile Identification Cards and other
iinsurance evidence as needed.
• Review all policies of insurance for accuracy.
I • Order any policy changes and upon receipt,again review for accuracy.
• Monitor and check each audit for accurate premium charges.
• Provide a"Schedule of Insurance" for easy reference of your coverages.
0 • Review company safety engineering recommendations and guide you in implementing
rthem, or, in some cases if appropriate, assist the company in having them modified or
adjusted.
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At time of loss, we assist to make sure that the claim is presented in an appropriate and
'
complete manner so that the loss settlement is fair and satisfactory.
j • Be available when needed to assist in all of your insurance needs. We have specific
"backup" people assigned to your account.
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PROP ER INSURANCE
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UInsured: City Of Elgin
Insurer: St.Paul Insurance Company
U Policy Term: 10/01/97 To 10/01/98
CAUSE OF
LOSS FORM USED:
ISpecial Form: Provides coverage against All Risk of direct physical loss or damage,except those
perils that are specifically excluded in the policy.
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LOC# BLD# SUB. OF INS. AMOUNT COIN% DED. VALUATION
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Blanket Real&Personal $93,847,052 100% $100,000 R/C
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IProperty
Business Income $ 1,000,000 50% N/A
1 (Bartlett Water Supply)
000
Contingent Tax Interr. $ 7,000,000 50% N/A
Extra Expense $1,000,000
I Personal Property Including $ 25,000
Inventory at Other Location'
Electronic Data Processing, $ 1,124,537
Media and Extra Expense •
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TERMS AND CONDITIONS:
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I Coverage includes:
Water Damage including back up of sewers
3 Flood(Excluding Flood Zone A)-Limit: $6,000,000
Earthquake-$16,000,000-Underground pipes
$6,000,000 -All Other Locations
0 Difference In Conditions-$ 70,000,000
Replacement Cost Valuation for real,personal property and computers
Actual Cash Value for auto and contractors equipment
f100%valuation on real and personal property
Agreed Amount-waiver of co-insurance on real property,personal property,auto physical damage,
contractors equipment and computer equipment
IOperation of building laws, increased costs of construction and demolition and debris removal
$100,000 deductible per claim except: *
1 1%for earthquake
I Business income and extra expense:
Gross Earnings Form
30 days extended period of indemnity
50%valuation as respects Contingent Tax Interruption
I Agreed Amount- coinsurance waived
Limit excludes ordinary payroll
*Deductible of$25,000 and $50,000 are available. See Premium Summary Page.
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:..... • INLAND MARINE
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Insured: City Of Elgin
Insurer: St.Paul Insurance Company
Policy Term: 10/01/97 To 10/01/98
COVERAGE DEDUCTIBLE
Contractors Equipment $16,074,279 $1,000
Miscellaneous Equipment $9,900,317 $1,000
Leased Equipment $ 500,000 $1,000
Radio&Emergency Equipment $ 7,271,358 $1,000
Accounts Receivable $ 250,000 $1,000
Valuable Papers $ 100,000 $1,000
Fine Arts $ 77,334 $1,000
Unscheduled Equipment $ 1,000,000 $1,000
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OMMERC AL CRIME ...........................
.•••••••••••••••••••...„•••••.••••••••••••••..........••••••••••••••••••.......................•••••1 , .•....••• . •
Insured: City Of Elgin
Insurer: St.Paul Insurance Company
Policy Term: 10/01/97 To 10/01/98
•
COVERAGES LIMIT
DED. *
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INSURING AGREEMENTS:
1 Employee Dishonesty(A) $ 500,000 $ 100,000
1 ploy
Forgery or Alteration(B) $ 500,000 $ 100,000
Theft,Disappearance and Destruction(C)
Sec. 1 -Inside the Premises $ 500,000 $ 100,000
Sec.2-Outside the Premises $500,000 $ 100,000
Money Order&Counterfeit Currency $500,000 $ 100,000
COVERAGE ENDORSEMENTS: •
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Faithful Performance Agreement applies
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* Optional Deductibles Available:
$50,000- 1794
$ 5,000-3453
See Premium Summary Page
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$O1LR +& ACHINERY
Insured: City Of Elgin
Insurer: Hartford Steam Boiler
Policy Term: 10/01/97 To 10/01/98
COVERAGES LIMITS PER
LIMITS OF INSURANCE:
Direct Damage& $16,000,000 Any One Accident
Extra Expense $1,000 * Deductible
Business Income $100,000
Sustained 24 Hours Actual Loss
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*$2,000 deductible on sewage/water treatment facilities
Joint Loss Agreement Clause
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EQUIPMENT COVERED:
COVERAGE INCLUDES
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.Perils: Heating,air conditioning,cooling,freezers,boilers, 1.
Electrical Injury including miscellaneous electrical apparatus panels, generators,
artifically generated current motors,etc.
Mechanical breakdown
Explosion of steam vessels and piping
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OMMERCl , GENERAL LIABILITY
':::v.::....::..'..."::. ....::.:''.'.............::•::.:'...:.: - ... :i''::i%:,:'..}...:..y...v'':.::.:..:v'. '::•%:':::•:i!i'':::i:?iiii v..::.is.ii::::.::tii%i•i":ni:ii::•:•r.,Y-.. :,.: .::
Insured: City Of Elgin
NInsurer: St.Paul Insurance Company
Policy Term: 10/01/97 To 10/01/98
COVERAGE WRITTEN ON:
Occurrence Form
COVERAGE LIMITS
LIABILITY:
General Aggregate Limit $3,000,000
Products/Completed Operations Aggregate Limit $3,000,000
1 Personal/Advertising Injury Limit(excludes $2,000,000
discrimination and wrongful termination)
Each Occurrence $2,000,000
Fire Damage Limit-Any One Fire $ 100,000
Medical Expense Limit-Any One Person $ 5,000
Law enforcement-each wrongful act $2,000,000
I Law enforcement- annual aggregate $2,000,000
Liquor Liability-Per Occurrence $2,000,000
Aggregate $3,000,000
SIR: $250,000 applies to bodily injury and property damage,per occurrence
$750,000 Combined aggregate for General Liability,Auto Liability,Public Officials
Liability and Law Enforcement Liability
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COVERAGES INCLUDED:
Premises/Operations
Products/Completed Operations
3 Independent Contractors
Blanket Contractual Liability
Host Liquor Liability
Employee as Additional Insured
Broad Form Property Damage
Incidental Medical Malpractice
Limited Worldwide Liability(suits in U.S.)
Automatic Coverage-Newly Acquired Organization(90 days)
1 Public Executive Officers are Protected Persons
Employee Benefits Liability(each claim and aggregate)
Claims Made Coverage
Limits: $1,000,000 each claim
$3,000,000 aggregate
Deductible: $ 1,000
Retroactive Date: 10/01/87
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Note:All pollution is excluded
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PUBLIC
OFFICIALS LIABILITY
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Insured: City Of Elgin
Insurer: St.Paul Insurance Company
Policy Term: 10/01/97 To 10/01/98
COVERAGE WRITTEN ON:
Claims Made Form
Retroactive Date: 10/01/87
$750000 Combined Aggregate SIR for General Liability,Auto Liability,Public Officials
Liability and Law Enforcement Liability
COVERAGE LIMITS
LIABILITY:
Each Claim/Annaul Aggregate Limit $2,000,000
Self Insured Retention: $ 100,000
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NOTE: The limit of liability includes defense costs, charges and expenses,
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COMMERCIAL. �4uTOMOBILf
IInsured: City Of Elgin
Insurer: St.Paul Insurance Company
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U Policy Term: 10/01/97 To 10/01/98
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I COVERAGE LIMIT PER
I LIABILITY:
ilk Bodily Injury and Property Damage $ 2,000,000 CSL Each Accident
Medical Payments $ 5,000 Each Person
SIR . $ 250,000 Per Occurrence
. $ 750,000 Combined Aggregate
SIR for Auto Liability,
General Liability,Public
0 Officials Liability and
Law Enforcement
Liability
A
COVERAGE APPLICABLE TO
Liability: Any Auto
0 Hired Autos&Borrowed Autos
Medical Payments: All Owned Autos
iit"'' Uninsured Motorists:Underinsured Motorists:Comprehensive: Collision:Towing and Labor:
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COVERAGE ENDORSEMENTS:
OPTIONAL ENDORSEMENTS :
( ) Rental Reimbursement
Any One Day-
Number of Days-
Total Limit-
( ) Hired Physical Damage
( ) Drive Other Car Coverage
Note: Uninsured/Underinsured Liability Coverage is excluded.
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„,,,„„„,„::::::::::::::„,:„„:,„,„:::::::::::::::::::::::::::::::„.„:::,...........„:„:„:::::::::::„:„.....::::::::::::„.:::::::::„.....„:„........:„....„:„...........:::::::::::::::.„„:„....„.::::::::::::::::.::.:::::::::::„.::::::.:::::::::::::::,:::::::::::::::;,::::,:::::::::::::::.,.....„..:::::::,::::::,::::::::::::::::.:„.,.........„...................,...::.::.......:.:.:.,....,.............:...:..„
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U : SPECIFIC EXCESSI/ORKERS COMPENSATION•
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Insured: City Of Elgin
Insurer: Safety National Casualty Corp.
Policy Term: 10/01/97 To 10/01/98
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I COVERAGE LIMIT . PER
I WORKERS COMPENSATION BENEFITS (A): STATUTORY
States: Illinois
1 EMPLOYERS LIABILITY(B):
IBodily Injury by Accident $1,000,000 Each Accident
Bodily Injury by Disease $1,000,000 Policy Limit
0 Bodily Injury by Disease $1,000,000 Each Employee
NI SIR $300,000 Each and Every Loss
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Payroll: $27,370,473
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UMBRELLA LIABILITY
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Insured: City Of Elgin
ElInsurer: St.Paul Insurance Company
r. Policy Term: 10/01/97 To 10/01/98
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COVERAGE LIMIT PER
Limit of Liabili ty $ 5,000,000 Each Occurrence
$ 5,000,000 Annual Aggregate
Self Insured Retention $ 10,000
PRIMARY COVERAGES:
Commercial Liability $ 2,000,000 Each Occurrence
$ 3,000,000 General Aggregate
$ 3,000,000 Products Aggregate
$ 2,000,000 Personal Injury
$ 100,000 Fire Damage Liability
r, Auto Liability $ 2,000,000 Combined Single Limit
Employers Liability $ 1;000,000 Each Accident
$ 1,000,000 Disease Policy Limit
$ 1,000,000 Disease Each Employee
Employee Benefits Liability $ 1,000,000 Each Claim
3 $ 3,000,000 Aggregate
t Law Enforcement Liability $ 2,000,000 Each Wrongful Act
J $ 2,000,000 Annual Aggregate
Public Officials Liability $ 2,000,000 Each Claim/Annual Agg.
Liquor Liability $ 2,000,000 Each Occurrence
$ 3,000,000 Aggregate
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PREMIUM COMPARISON
COVERAGE EXPIRING RENEWAL RENEWAL
PREMIUM PREMIUM PREMIUM
W/$250,000 SIR W/$250,000 SIR W/$150,000 SIR
Property+ [$100,000 SIR] $59,782 $60,193 $60,193
Inland Marine [$100,000 Deductible] $49,931 $39,373 $39,373
Crime [$100,000 Deductible] $1,435 $1,435 $4,888*
General Liability $87,689 $78,513 $91,953
Liquor Liability Included Included Included
Law Enforcement Liability $66,555 $62,897 $64,599
Paramedic Liability Included Included Included
Public Entity Management Liability [$100,000 SIR] $26,045 $23,158 $23,158
Auto Liability++ $33,093 $24,188 $28,880
eiwk Auto Physical Damage [$1,000 Deductible] Included Included Included
Umbrella Liability $54,289 $52,000 $52,000
Claims Administration
(excluding Workers Compensation) $32.548 $32,548 $32.548
St.Paul Total $411,367 $374,305 $397,592
• Boiler& Machinery- Hartford Steam Boiler $9,996 $9,396 $9,396
Excess Workers Compensation- Safety National $56,569 $45,132 $45,132
Lundstrom Subtotal: $477,932 $428,833 $452,120
Workers Compensation Claims Administration $35,250 $35.250 535.250
TOTAL $513,182 $464,086 $487,370
Average Claims(Excluding Workers Compensation) $390,000 $350,000 $350,000
[5 years through 10/1/96]
Average Workers Componsation Claims $810,000 $730.000 $730.000
[5 years through 10/1/96]
TOTAL PROGRAM COST: $1,713,182 $1,544,083 $1,567,370
+Property values have increased by$6,485,600.
++Renewal exposure rated on 256 autos,per expiring policy
*Crime Deductible reduced to$5,000
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SIR/DEDUCTIBLES PREMIUM
Property: (Currently Currentl $100,000) $100,000 $60,193
$150,000 $48,322
I $50,000 $81,222
Crime: (Currently$100,000) $100,000 $1,435
I $50,000 $3,229
$5,000 $4,888
I General Liability: (Currently$250,000) $250,000 $78,513
$150,000 $91,953
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$100,000 $104,139
$50,0000 $127,297
Auto Liability: (Currently$250,000) $250,000 $24,188
I $150,000 $28,880
$100,000 $32,834
$50,000 $41,286
ILaw Enforcement: (Currently$250,000) $250,000. $62,897
$150,000 $64,599
3 $100,000 $69,396
$50,000 $78,295
I Public Entity Mgmt Liability: (Currently$100,000) $100,000 $23,158
$150,000 $21,586
$50,000 $25,923
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DISCLAIMER-The abbreviated outlines of coverages used throughout this proposal are not intended
r to express any legal opinion as to the nature of coverage. They are only visuals to a basic
understanding of coverages. Please read your policy for specific details of coverages.
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. . ... ..WHAT YOU CAN DD TD oWER OUWaRKFRS
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COSTS
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While you may have little control over the rising costs of health care, as an employer you
ij have the tools to lower your Workers' Compensation costs by reducing on-the-job injuries and
returning injured employees to work.
IThe following information will help you put an effective loss control plan into motion.
ACCIDENT PREVENTION
I You and your managers must first be committed to safety to set the example for your
employees to follow:
mitia** MANAGEMENT COMMITMENT
To test your commitment to providing a safe workplace, ask yourself the following questions:
• Do you require use of personal safety equipment?
• Does your company have a safety ro am?
P gr
1 • Are your managers held accountable for safety in the workplace?
• Are safety rules enforced by your managers?
ICONTROLLING WORKPLACE HAZARDS
Inefficient machinery: tools, and work methods can lead not only to injury and higher
Workers' Compensation costs, but also to lower production. Look at the ways jobs are
P erformed by peo le and their equipment; make sure they work together safely. When you
discover safety and health hazards, make corrections immediately.
1 • Are safety inspections conducted on a regular basis?
• Does your business have a method to review all accident and near-miss incidents?
1 • Do you have an accident emergency plan in place? _
• When you find workers exposed to hazards in the workplace do you take action to
3 eliminate those hazards?
• Do you perform regular maintenance on your equipment?
r SAFETY TRAINING
A large percentage of the more serious on-the-job injuries reviewed by our company involve
people who are employed for less than a year. Lack of safety training and inadequate
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supervision of new employees can often be at the root of the loss problem. Safety training
j begins the day a new employee starts work and must continue to be an important part of every
worker's job.
• Do all of your employees receive a safety and health orientation?
I • • Are employees involved in solving safety and health problems?
• Do your workers know about the hazards in their jobs and do they know how to identify
Iand report hazards?
• Do employees know how to use and take care of the personal protective equipment?
3 i. • Does your organization provide ongoing communications between managers and workers
stressing the importance of safety?
ICLAIMS HANDLING
Returning your injured workers to work is one of the most effective ways to cut your Workers'
1 . Compensation costs. When a worker is disabled by a job-related injury you have the obvious
medical costs as well as many hidden costs - lost time by fellow workers, loss of efficiency,
lost time by supervision,training costs, and possible damage to tools and equipment.
IYour employees need to know that you will do everything possible to get them back to work
I if they are hurt on the job. Are your workers told exactly what to do if injured? How an
injury is handled when it first occurs can have a major impact on the length of the disability.
Here are several steps you can take that will help reduce costs:
1 • Make and enforce a company policy that All injuries, no matter how small, must be
reported immediately. This helps a company know what is going on in its plant, office or
job site and assists the company's safety program.
I • A thorough investigation should be conducted on every reported injury. Make this a
matter of routine rather than a subject for concern. Determining accurately what happened
is an important step in managing your Workers' Compensation claims.
! • Stay in touch with the injured employee. Letting your worker know you care eases their
anxieties and becomes an essential ingredient in a successful return to work. Injured
1 workers are more likely to involve an attorney (driving up costs)when they feel ignored or
forgotten..
1 •. Identify or design light duty jobs that can be performed as the injured worker recovers.
Even in part-time work is all that is available, the claim cost will be reduced because
disability payments charged will be offset by the employee's wages.
3 Your Workers' Compensation insurance is based upon the types of jobs at your company, the
size of your payroll, and your claims record. It is not likely you will cut staff or change the
types of jobs employees perform in order to reduce insurance costs. However, you can lower
your costs through good safety,hiring, and return-to-work programs.
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