Placement of Excess Workers Compensation Insurance

Placement of Excess Workers Compensation Insurance

Becky Maginnis, Risk Management Administrator brought this issue, Placement of Excess Workers Compensation Insurance, before the Board during the August 28th meeting for approval. Maginnis told the Board that staff recommended placement of excess workers compensation insurance with Midwest Employers Casualty Company for a 2007-2008 premium amount of $104,861.00.
Washington County's insurance and risk management consultant, Hilbs, Rogal & Hobbs (HRH) has aggressively marketed the County's excess workers compensation insurance program. The County is presently self-insured for the first $500,000 of any workers compensation claim expense.
If any claim reaches the $500,000 cap, then the County's excess carrier is responsible for any additional costs for that claim. Of the two responding carriers, Midlands Management/NYMG had the lower premium quote ($92,699, a difference of $12,162); however, this carrier had a lower Best Rating (8 as opposed to Midwest's 15) indicating less financial stability. Following discussion, the Board approved the contract to Midlands for the $92,699.00 total, by a 3-2 vote.