STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: January 25, 2023
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Risk Management
EXECUTIVE: Kimberly Bizor Tolbert
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SUBJECT
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Authorize a one-year policy for excess workers' compensation insurance through an Interlocal Agreement with the Texas Municipal League Intergovernmental Risk Pool, and subject to approval by the Executive Board of Texas Municipal League Intergovernmental Risk Pool effective February 1, 2023 through January 31, 2024 - Not to exceed $1,043,280.00 - Financing: Workers' Compensation Fund
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BACKGROUND
This insurance policy will provide one-year of excess workers' compensation coverage.
Excess workers' compensation insurance limits the City's financial exposure on employee injury claims. This insurance provides coverage for catastrophic employee injury claims that exceed an established threshold. The City purchases excess workers' compensation insurance for compensable claims that exceed an established threshold. The policy will provide benefits such as disability, death, medical, etc. to employees that have suffered an injury or illness during the course and scope of their job.
It is recommended the City enter into an Interlocal Agreement with Texas Municipal League Intergovernmental Risk Pool (TMLIRP) for excess workers' compensation coverage to be effective February 1, 2023, thru January 31, 2024, subject to the approval by the Executive Board of TMLIRP. The City will pay the first $2.5 million for each injury.
TMLIRP is a government agency offering excess workers' compensation coverage to political subdivisions in accordance with the Texas Workers' Compensation Act. TMLIRP provides coverage to other political subdivisions such as cities, municipal utility districts, transit authorities, and public utility boards.
The Interlocal Agreement with TMLIRP is authorized by Chapter 791...
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