County warned of higher workers’ compensation costs as insurance renewals near

Dubuque County Board of Supervisors members heard a presentation Jan. 27 from Derek Parsons of O’Connor in English Insurance outlining expectations for the county’s ICAP and IMWCA renewals and the budget implications for fiscal years 2026–27. Parsons said the county’s workers’ compensation experience modification will move from 0.77 to 1.02, a shift that converts last year’s roughly 23% credit into about a 2% debit for the IMWCA policy.

That change, Parsons said, would likely push the county’s workers’ compensation premium above last year’s pre‑audit level of about $205,394 toward a “$250,000–$260,000 range,” though he noted IMWCA applies additional credits and discounts that could reduce the final figure. “This is the sheet I really wanted to show you today … our mod is gonna go from 0.77 … to 1.02,” Parsons said.

Parsons also reviewed ICAP (property, liability, public officials, law enforcement and auto coverage) figures for 2025: total ICAP claims were $172,671.31 and last year’s ICAP premium including policy fees was presented as roughly $900,108. He said ICAP expects a flat property rate with a 2% inflation‑guard on building values and anticipated a 2–5% liability rate, recommending budget planners assume about a 5% package increase for ICAP (he suggested a 5–10% planning range to allow cushion).

Parsons urged the county to update equipment and building valuations before the renewal, noting that essential pieces of equipment should be listed at replacement‑cost value to avoid operational shortfalls after a loss. He also advised reviewing unscheduled property items — for example, ICAP currently provides a $25,000 unscheduled limit for non‑vehicular (pedestrian) bridges — and to schedule high‑value or mission‑critical items explicitly on the property schedule.

Stella (county staff) followed with the draft risk‑management budget, which she said was placed in the packet and is funded from the general supplemental fund. “We need to be ready to pay what the renewal is; we can always amend,” she said, noting the county’s renewal date is July 1 and that ICAP likely will not supply final renewal numbers until June. Board members discussed the uncertainty and the value of maintaining a budget cushion.

Parsons said he will supply a three‑year loss history and the renewal spreadsheets. He also reminded the board that ICAP provides member services including a $1,000 PPE credit, cyber resources, loss‑control visits and five free hours of legal advice per calendar year through Hopkins & Huebner.

The board did not take a final action on renewals at the session; staff and the insurance broker will return with finalized renewal figures and supporting schedules before the July 1 renewal date.