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City hears insurance briefing; experience-mod factor at 1.31 means higher premiums
Summary
A risk analyst briefed the Palatka City Commission on workers' compensation and liability claims data, noting the city's experience modification factor is 1.31 and laying out next steps—safety committee work, training and claims-management reviews—to try to reduce future premiums.
A presenter identified in the meeting as Evans told the Palatka City Commission the city's workers' compensation experience modification factor is 1.31, and that means the city is paying about 31% more for workers' compensation insurance than a similar city with no claims.
The report explained how the experience mod is calculated and why it matters: the National Council on Compensation Insurance (NCCI) aggregates claims data, and insurers use that factor when underwriting municipal workers' compensation premiums. Evans said the 1.31 score "means you're paying 31% more for your premium than a city would that had 0 claims." He added that the figure reflects both frequency and severity of claims and that the city's five-year picture placed police, fire and public works as the top departments for claims.
The briefing placed emphasis on reducing both the number of claims and the size of open, long-running claims. Evans likened the experience-mod process to driving-record points, saying it can take years for large losses to drop from the calculation: "It takes 3 years for a ticket on a driver's license to fall off. Right? Takes 3 years for a claim of significant value once it's been closed to kinda drop off of your records." He recommended a proactive program of department-level training, strengthened safety-committee activity, and regular claims reviews with the insurer to shorten claim life and lower reserves.
Commissioner Davis sought clarification about the report's figures and the term "severity," asking whether it referred to dollars. Evans replied, "Correct. Correct." Commissioners discussed which departments' claims drove the mod and how isolated, severe losses can skew the factor for several years. A city staff member also told the commission that one recommended immediate step is defensive-driving training for all employees who operate city vehicles; that training was scheduled to begin in June.
No formal vote was taken on the presentation. Commissioners and staff directed that the safety committee take the lead on a prioritized program of training and preventive measures, that departments schedule claims-review sessions with the insurer, and that staff return with implementation details. Evans and city staff said they would follow up with materials and training schedules for commissioners.
The presenter warned the commission that while a 1.31 mod is higher than 1.00, it is not unusual for municipalities and that the trust does not cancel members for high claims; the result is higher premiums for the city's taxpayers rather than loss of coverage.
Ending: Staff will report back with specific safety-committee actions, training schedules, and a claims-review calendar so commissioners can monitor whether the measures lower claims frequency and the experience modification factor over time.
