CITY OF SAN MATEO
RESOLUTION NO. ____ (2025)
AUTHORIZING PURCHASING OF EXCESS WORKERS’ COMPENSATION COVERAGE FROM MIDWEST EMPLOYERS’ CASUALTY COMPANY FOR CALENDAR YEARS 2026 AND 2027
WHEREAS, the City has utilized its broker, Keenan & Associates, to solicit quotes to identify an insurance carrier to provide the City coverage for Excess Workers’ Compensation coverage.
WHEREAS, on an ongoing basis, the City, which is self-insured for the purpose of Workers’ Compensation coverage, should continue carrying Excess Workers’ Compensation coverage which protects the City financially for workers’ compensation claims that exceed the specified dollar limit; currently, the City’s dollar limit (or retention) for workers’ compensation claims is $1,000,000.
WHEREAS, Keenan & Associates has identified an insurance carrier, Midwest Employers' Casualty Company, that provided a competitive coverage option for the City’s Excess Workers’ Compensation coverage.
WHEREAS, the City selects a 2-Year Term Policy at $1,000,000 Retention/Statutory Limit at the cost of $574,924 ($287,462 annually) with Midwest Employers' Casualty Company.
WHEREAS, Midwest quoted the lower annual premium and more favorable terms of coverage regarding corridor retention and policy limit as outlined above.
WHEREAS, Municipal Code 3.60.050(c) allows the City to forgo the competitive bidding process related to the placement of insurance coverage.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:
1. This purchase is not a project as defined by the California Environmental Quality Act in that they will not cause a physical change in the environment. (CEQA Guidelines Section 15378(b)(5)).
2. Purchasing of Excess Workers’ Compensation coverage Midwest Employers' Casualty Company as outlined in attached Agenda Report, is approved.
3. The Human Resources Director is authorized to sign and execute the agreement.