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Board selects Midwest option for excess workers' compensation, citing lower premium and two‑year rate lock
Summary
Trustees approved an excess workers’ compensation policy from Midwest offering a lower premium ($72,061) and a two‑year rate‑lock guarantee billed 50% each year; staff said this saves about $13,289 compared with a Safety National renewal option.
The board approved renewal of excess workers' compensation coverage using a Midwest policy option that staff said reduces the district’s premium and offers a two‑year rate-lock guarantee.
Staff noted last year's premium with Safety National was $85,350. Safety National's renewal terms would have increased the premium to $90,490 and raised the self-insured retention to $5.5 million, which staff said was not in the board’s interest. The Midwest option retains the $500,000 self-insured retention and reduces the premium to $72,061, a savings staff estimated at $13,289.
"Anytime you can get a rate lock guarantee in insurance, my advice is to always take it," Carrier said, describing the Midwest two‑year rate lock; Midwest would bill 50% each year for the two‑year term, staff said.
A motion to approve the recommended insurance option was made by Mister Higginbotham, seconded, and carried by voice vote.
Staff recommended the Midwest option as the most cost‑effective solution with a rate‑lock incentive; trustees approved and asked staff to finalize contract details and schedule billing appropriately.
