Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Insurance topic
No spam. Unsubscribe anytime.
South Beloit council reviews $331,000 insurance renewal, cites work‑comp spike
Summary
City officials reviewed a jump in the annual insurance package to roughly $331,000, driven by higher replacement costs and an increase in the city's workers'compensation modification factor; staff flagged separate cyber coverage due Jan. 1.
City officials heard from insurance broker Owen Casanza on Nov. 17 about a larger-than-expected renewal for the city's combined property, liability and workers'compensation package.
The presentation opened with the broker explaining the prior policy had been prorated for 11 months and the new renewal is a full 12‑month contract, which, together with rising replacement costs for buildings and equipment, pushed the package toward $331,000. "A large factor of that increase is your work comp mod went from 0.87 to 1.09," Casanza said, describing the National Council on Compensation Insurance (NCCI) formula that factors five years of losses into a municipal modifier.
Why it matters: the premium increase affects the city's operating budget and will be reflected in the 2026 budget deliberations. Council members sought clarifications on which line items were included in the resolution language and whether the figure in the motion matched the packet.
Staff and the broker said two drivers accounted for most of the change: (1) moving from an 11‑month to a 12‑month renewal and (2) an upward revision to the workers'comp modification after recent claim settlements. Casanza told the council the modification is recalculated annually and that recent closed claims are the reason for the near‑term increase; he said the factor can fall over subsequent years as older losses age off the five‑year window.
The council also noted cyber insurance is a separate policy with a Jan. 1 renewal date and will be brought to the December meeting. A council member asked the clerk and staff to ensure the resolution text and packet numbers align for the official record.
Next steps: the council approved the resolution as presented and the city will include the premium increase in ongoing budget planning ahead of 2026.
