Resolution - Risk Management: Consider a resolution authorizing and directing the City Manager to purchase, for and on behalf of the City of Lubbock, workers' compensation coverage from the Texas Municipal League Intergovernmental Risk Pool, for which the total amount shall not exceed $1,970,994.44.
Item Summary
The City is required by the Labor Code to provide workers' compensation benefits to all municipal employees. The City extends workers' compensation benefits to elected officials, board members, and volunteers, to limit liability exposure. Workers' compensation provides medical care and lost wages, on a no-fault basis.
The City currently purchases workers' compensation coverage from the Texas Municipal League Intergovernmental Risk Pool (TMLIRP) on a deductible plan, in which the City pays a discounted premium of $1,682,288 for a one-time payment, plus a $100,000 deductible deposit. At the end of each month, the City reimburses TMLIRP for any claims that do not meet the deductible of $25,000. The current year's contribution for workers' compensation insurance is $1,782,288, a 10.6% increase over the expiring policy.
Staff recommends TMLIRP continuing this plan of a $25,000 deductible plan with a single annual payment of $1,870,997.44, plus the $100,000 deductible deposit and monthly reconciliation for claims which do not meet the $25,000 threshold. The total proposed contribution for workers' compensation insurance is $1,970,994.44.
Carriers bind coverage on April 1, 2024, after notification of City Council approval. The inter-local agreement will be issued after premiums are received from the City. Current insurance policies are available in Risk Management.
Fiscal Impact
Funds are included in the approved FY 2023-24 Risk Management Budget.