MEMO
TO: CITY COUNCIL
FROM: LISA ROOS, CITY CLERK
SUBJECT: DIBUDUO & DEFENDIS INSURANCE BROKERS
DATE: 6/13/2023
RECOMMENDED ACTION:
Approve the invoice in the amount of $17,257.62 payable to DiBuduo & DeFendis for Employment Practices Liability Insurance effective 7/1/2023 to 7/1/2024.
BACKGROUND:
The City of Ripon has had Employment Liability Insurance (EPLI) since January 2015. We have been using DiBuduo & DeFendis since inception.
In June 2018, staff requested quotes from other insurance brokers, including DiBuduo & DeFendis.
None of the other brokers could match the premium by DiBuduo & DeFendis, so we continued with their services of providing EPLI for that fiscal year.
Below is a table of premiums that have been paid for EPLI insurance in the most recent years along with the annual increases.
Fiscal Year Premium Increase
2016-2017 $13,379.52
2017-2018 $13,379.52 0%
2018-2019 $13,387.36 0%
2019-2020 $14,122.56 5%
2020-2021 $14,544.22 3%
2021-2022 $15,417.43 6%
2022-2023 $16,645.36 8%
2023-2024 $17,257.62 3.7% Proposed
Per our insurance broker, there is an increase in premium due to an increase in population and employees, increase in water/sewer utility revenues, and company mandated increase. The premium rates are factored using an internal rating system that takes employee count, City population, and utility revenues into consideration because the employees that deal with the public are at higher risk on EPLI claims and those are areas where the employees tend to deal with the public more.
DISCUSSION/ANALYSIS:
We have received a quote from DiBuduo & DeFendis for EPLI for fiscal year 2023-2024. The premium increased by 3.7% compared to last year. For fiscal year 2024-2025, staff is planning to request quotes from other brokers.
FISCAL IMPACT:
The fiscal impact is $17,257.62 from the General Fund.