Independence City Council addresses skyrocketing workers' compensation and risk management costs

The City of Independence is grappling with a significant rise in risk management costs, prompting urgent discussions among city leaders. During a recent Audit & Finance meeting, city officials revealed that since February 2016, excess workers' compensation premiums have skyrocketed by 190%. This alarming trend is attributed to a dramatic increase in liability claims, which surged from 14 in fiscal year 2019 to 58 in fiscal year 2020—a staggering 314% jump.

City Manager Walker highlighted that the police and public works departments are particularly affected, with claims in the police department rising from 5 to 15 and public works claims increasing from 6 to 21 in just one year. In contrast, the power and light department, which has a dedicated risk management safety coordinator, saw only a slight increase in claims, underscoring the importance of proactive safety measures.

To address these escalating costs, the city council has proposed reallocating budget resources to enhance risk management efforts across all departments. This initiative aims to foster a citywide safety culture rather than relying solely on individual departments. The finance director noted that broader industry trends, including significant losses in the insurance sector, are also contributing to rising premiums.

The council is set to discuss further measures, including the potential hiring of additional risk management personnel, to ensure that safety becomes an integral part of the city’s operations. As the city prepares for upcoming insurance renewals, officials are optimistic that these changes will help mitigate costs and improve employee safety, ultimately allowing more resources to be directed toward community services.