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Council tables renewal of workers’ compensation policy pending payroll audit
Summary
Pryor Creek City Council paused action on renewing an employer’s liability policy with Comsource Mutual and asked staff to verify payroll reporting and provide options, including a $3,000 deductible and a claims reserve, before taking further action.
Pryor Creek City Council on June 17 tabled action on renewing the city’s workers’ compensation employer’s liability policy with Comsource Mutual Insurance Company to allow staff time to verify payroll reporting and to provide deductible and cost options.
The policy under discussion was identified in meeting materials as policy number 00002273251. Council and the insurance presenter discussed whether the city should accept a higher deductible — participants referred to both a $1,000 and a $3,000 option — and how claims would be processed if the deductible were raised. Chris, the presenter for the insurance underwriter, told the council, “It’s the latter. It’s it’s exactly the latter. Yes,” when asked whether the insurer would handle claim settlement and the city would reimburse the deductible.
The council directed staff to provide payroll documentation used to calculate premiums, and to allow time for council members to review that data before the council reconsiders the renewal. Councilmember Charles and others questioned the reported payroll increase and asked for the monthly payroll reports and an explanation of what wages are included in the payroll base used for premium calculations. Councilmembers asked that the payroll data be audited or verified so the premium basis could be confirmed.
Mayor Sandy proposed tabling the item to the first meeting in July to give members time to review the numbers. Council discussion also included a suggestion to pay the premium and set aside funds in a dedicated claims account to cover any deductible the council ultimately selects.
Motion and vote: The council recorded a motion to table consideration of renewal of the workers’ compensation employer’s liability policy until the first meeting of July 2025 to allow staff to verify payroll reporting and to provide cost options, including an option with a $3,000 deductible. The motion to table was approved by the council (motion recorded in the meeting transcript; mover recorded as Chris; second not specified in transcript). No substantive decision on acceptance of a higher deductible was made; the item was tabled for further review.
Background: Council members said monthly payroll reports arrive within seven to 10 days after the end of each month. Council asked staff to supply the underlying payroll figures used by the insurer and the underwriter’s calculations of premiums and claim examples that would reach the deductible levels discussed. No premium amounts were approved at the meeting.
Next steps: Staff (Grace and the insurance underwriter) will provide the payroll detail and underwriter correspondence to council members in the coming days; the item will be returned to the council at the first July meeting for further consideration.
