Veneta adopts $2,000 per-claim workers’ comp deductible to cut premium costs

The Veneta Utilities Authority and Veneta City Council voted on Feb. 20 to adopt a $2,000 per-claim deductible for the city’s workers’ compensation coverage with CompSource Mutual, a change the city’s staff said could lower the annual premium if claims remain low.

Mister Francis, a city staff member presenting the item, told the board that packet estimates showed a range of premium figures depending on the deductible chosen and other rate multipliers. Francis said packet materials showed an estimate for a no-deductible renewal at about $280,000 and a $2,000-per-claim quote as low as $200,064; another figure in the packet listed $264,948. He said the city had an expiring premium listed at $240,355 from the prior year and that the city recorded nine claims in the referenced 12-month period, three of which were under $2,000.

"Chris suggested, 'Let’s start at $2,000 and see where those go,'" Francis recalled, referring to Chris Kennedy, the city’s broker from Brown and Brown. Francis and other staff said the deductible was intended both to reduce the near-term premium and to create an incentive to continue safety training and other loss-control measures.

Councilmembers asked about the administrative and employee impacts of a deductible and whether workers would still be sent for medical review. Francis said employees would still be evaluated and that the deductible means the city would pay the first portion of a claim up to $2,000 before CompSource Mutual assumed the remainder.

On a roll-call vote during the Veneta Utilities Authority session and ratified by the City Council, all members present voted to approve the $2,000 deductible effective March 1, 2025. No members recorded a vote against the motion.

Officials emphasized the tradeoff: a lower premium up front versus the city paying smaller claims up to the deductible. Francis said ongoing safety steps — including additional nighttime lighting and continued use of free training through OMAC — are intended to reduce claim frequency and help lower the city’s experience modifier over time.

The council’s action directs staff to implement the deductible for the March 1 renewal and to continue monitoring claims and safety outcomes, with further discussion possible at future budget reviews.

CompSource Mutual workers’ compensation coverage, deductible selection and premium amounts were discussed during the Veneta Utilities Authority agenda item and repeated on the city-council agenda. Packet figures and staff remarks were the basis for the summary above.