|In September 2013, at the conclusion of a comprehensive Request for Proposal (RFP) process related to the provision of property, liability and workers’ compensation insurance and risk management services for the Township, the Board of Directors selected Texas Municipal League Intergovernmental Risk Pool (TMLIRP) as the Township’s insurance provider.
The Township’s current property, liability and workers’ compensation policies expired on January 1, 2020. Please note that although quotes for the renewal insurance policies covering the period January 1, 2020 - January 1, 2021 were not received from TMLIRP until February 6, 2020 due to software conversion issues at TMLIRP, the Township's assests remained fully insured. The Township has until February 29, 2020 to accept the renewal quotes summarized in this Executive Summary or to request revised quotes based on different deductibles and/or coverage levels desired by the Board.
A summary of the types of insurance coverage and corresponding premiums, deductibles and limits of liability included in the renewal quotes is attached for review. In total, the Township’s annual premiums are increasing by $5,591, or 1.0%. This net increase in insurance expense is comprised of a $16,140 decrease in property and liability insurance premiums offset by a $21,731 increase in workers’ compensation, as outlined in the following two paragraphs.
Property and liability insurance premiums are decreasing by $16,140, or 3.6%, from the 2019 total of $452,092 to the renewal total of $435,952. The decrease in premiums is due primarily to a reduction in the experience modifier rate from 0.71 to 0.66. The quotes are based on maintaining the same level of deductibles for all policies and maintaining the same limits of liability for the general liability, errors and omissions, automobile liability, boiler and machinery, and crime policies. However, the limits of liability have increased for the automobile physical damage, real and personal property, and mobile equipment policies based on the addition of approximately $6.5 million of new assets.
For the Township’s workers’ compensation policy, TMLIRP has provided a renewal quote of $125,849, which is $21,731, or 20.9% higher than the current premium of $104,118. The increase is due primarily to an increase in firefighter rates from $3.55 to $4.69 per $100 of payroll. The higher rates are a result of amendments the Texas Legislature made to Section 607.055 of the Texas Local Government Code making clear that a firefighter or emergency medical technician who suffers from any of 11 types of cancer resulting in death or disability is presumed to have developed cancer during the course and scope of his or her job.
Ms. Carolyn Miller of RWL Group, the Township’s insurance consultant, has reviewed the renewal quotes from TMLIRP and recommends Board approval.