HomeMy WebLinkAbout20260019 Resolution
Approve Revised Large Deductible Collateral Requirements Letter Agreement and
Workers Compensation and Employers Liability Insurance Proposal
(Policy #4234402), Authorize Chair to Sign, and Rescind Resolution #2025-3548,
Dated December 24, 2025 — Pinnacol Assurance
Whereas, the Board of County Commissioners of Weld County, Colorado, pursuant to •
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
Whereas, on December 24, 2025, by Resolution #2025-3548, the Board approved a
Large Deductible Collateral Requirements Letter Agreement and a Workers
Compensation and Employers Liability Insurance Proposal (Policy #4234402) between
the, County of Weld, State of Colorado, by and through the Board of County
Commissioners of Weld County, on behalf of the Department of Human Resources, and
Pinnacol Assurance, commencing January 1, 2026, and ending January 1, 2027, and
Whereas, the Board has been presented with a Revised Large Deductible Collateral
Requirements Letter Agreement and a Workers Compensation and Employers Liability
Insurance Proposal (Policy #4234402) between the County of Weld, State of Colorado,
by and;through the Board of County Commissioners of Weld County, on behalf of the
Department of Human Resources, and Pinnacol Assurance, commencing January 1,
2026, and ending January 1, 2027, with further terms and conditions being as stated in
said revised,letter agreement and proposal, and
Whereas,, after review, the Board deems it advisable to approve said revised letter
agreement and proposal, copies of which are attached hereto and incorporated herein by
reference.
Now, therefore, be it resolved by the Board of County Commissioners of Weld County,
Colorado, that the Revised Large Deductible Collateral Requirements Letter Agreement
and the Workers Compensation and Employers Liability Insurance Proposal
(Policy #4234402) between the County of Weld, State of Colorado, by and through the
Board of County Commissioners of Weld County, on behalf of the Department of Human
Resources, and Pinnacol Assurance, be, and hereby are, approved.
Be it further resolved by the Board of County Commissioners of Weld County, Colorado,
that, that Resolution #2025-3548, dated December 24, 2025, for a Large Deductible
Collateral Requirements Letter Agreement and a Workers Compensation and Employers
Liability Insurance Proposal (Policy #4234402), be, and hereby is, rescinded.
Be it further resolved by the Board that the Chair be, and hereby is, authorized to sign
said revised letter agreement and proposal.
cc•.pE(ss/AD/KI_) 2026-0019
02/1 q/26 PE0037
Revised Large Deductible Collateral Requirements Letter Agreement and Workers
Compensation and Employers Liability Insurance Proposal (Policy #4234402), and
Rescind Resolution #2025-3548, Dated December 24, 2025 — Pinnacol Assurance
Page 2
The Board of County Commissioners of Weld County, Colorado, approved the above
and foregoing Resolution, on motion duly made and seconded, by the following vote on
the 5th day of January, A.D., 2026, nunc pro tunc January 1, 2026:
Scott K. James, Chair: Aye
Jason S. Maxey, Pro-Tem: Aye r 1 1%) •
Perry L. Buck: Aye iti *ALynette Peppier: Aye em
Kevin D. Ross: Aye `'"'
Or 2-4
Approved as to Form: N•.t t WC/
Bruce Barker, County Attorney
Attest:
Esther E. Gesick, Clerk to the Board
•
2026-0019
PE0037
WEER Department of Human Resources
(970) 400-4220
1 150 0 St., P.O. Box 758
COUNTY, CO Greeley, CO 80632
December 30, 2025
Board of County Commissioners
1150OSt.
Greeley, CO 80631
Re: Revised Workers' Compensation Renewal Premium
Dear Board of County Commissioners,
On December 24, approval was granted to proceed with the 2026 Workers'
Compensation renewal proposal from Pinnacol Assurance. This proposal was initially
based on an estimated experience modification factor (e-mod) of 0.81.
Weld County's official e-mod from NCCI has since been updated to 0.73. As a result,
Arthur J. Gallagher successfully negotiated with Pinnacol Assurance to reduce the
renewal premium from $452,796 to $437,739.
Due to this adjustment, Pinnacol Assurance requires a revised deductible endorsement
to be signed.
Please feel free to reach out with any questions or for additional details.
Sincerely,
Ala*Lete-44--
Kelly Leffler
Safety, Wellness, Risk Manager
Department of Human Resources
2026-0019
PINN/I COL 7501 E.Lowry Blvd.
ASSURANCE Denver,CO 80230-7006
www.pinnacol.com
December 3, 2025
Weld County
1150 0 Street
Greeley,CO 80632
Subject: Large Deductible Collateral Requirements—2026 Renewal
Policy number:4234402
The financial collateral required to issue the policy for the deductible you have selected for policy number
4234402 is currently$250,000.
The above-mentioned collateral has been agreed upon in the form of a Bond issued by an"A"rated carrier.The Bond
is subject to review at twelve months,and at least annually thereafter,and according to statutory requirements may
be adjusted if indicated. If at any time the carrier that issued the Bond provides notice of cancellation to Pinnacol
Assurance,Weld County will be required to secure a replacement bond in the then required amount,in a form
acceptable to Pinnacol Assurance,within 30 days,or the workers'compensation insurance policy will be cancelled on
10 days'notice for failure to meet the financial requirements of the policy. These collateral requirements extend to
the renewal of any policy. In addition to the above requirements,failure to provide any required collateral by a
renewal date shall also result in issuance of a 30-day notice of cancellation of the policy for failure to meet the
financial requirements of the deductible policy.
"Obligations,"as referred to in the Bond shall be defined as Weld County obligations under the applicable workers'
compensation application,policy,relevant statutes and regulations,or any other obligation of any kind or nature that
is owed by Weld County to Pinnacol Assurance. Weld County agrees that Pinnacol Assurance may draw on the
bond at any time(s)to satisfy any and all Obligations(in addition to its other remedies and without prejudice to its
other rights against Weld County)and if so,substitute collateral in the prescribed form must be immediately
provided to,at all times, maintain the collateral amounts required by this agreement.
This agreement must be signed by an officer of Weld County capable of making such financial agreement.
Scott K.James JAN 0 J 2026 Chris Hansen
Chair, Board of Weld County Commissioners Underwriting Lead, Pinnacol Assurance
L E La
Attest: ,. F> °x� +`*.
Clerk to the Board 1861 OQa
By: An�va�'
Deputy Clerk to the Board
CC:Alec Hagen, Pinnacol Assurance
Sarah Bensman,Sr Business Director,Pinnacol Assurance ZOZ(o—OOIG
PINNIACOL 7501 E. Lowry Blvd.
ASSURANCE Denver, CO 80230-7006
www.pinnacol.com
WORKERS COMPENSATION AND EMPLOYERS
LIABILITY INSURANCE PROPOSAL
Weld County
4234402
POLICY PERIOD 01/01/2026 to 01/01/2027
PART ONE-WORKERS COMPENSATION INSURANCE
Colorado Statutory Requirements.
PART TWO-EMPLOYERS LIABILITY
Bodily Injury by Accident-Each Accident Limit $1,000,000
Bodily Injury by Disease-Each Employee Limit $1,000,000
Bodily Injury by Disease-Policy Limit $1,000,000
PREMIUM BASIS
Total Estimated Annual $165,563,837
Payrolls
NCCI-Experience .73
Modification
Standard Premium $1,736,728
Adjusted Standard Premium $1,483,860
Expense Constant $160
TER $8,278
CAT $16,556
Total Expense Constant/TER/CAT $24,994
(due in addition to deductible premium)
COMMENTS
States where known exposures exist: Colorado
The estimated annual payrolls and Employers Liability limits were obtained from quote specifications.
Coverage is excluded for all states except Colorado.
LARGE DEDUCTIBLE PLAN
DEDUCTIBLE $750,000 Per Occurrence
Definition of loss includes medical,indemnity,and allocated expense.
LOSS HANDLING CHARGE 1.10(10%)of paid losses.
The loss handling charge is in addition to the deductible amount,but is not charged on the portion of any loss
exceeding the deductible.
AGGREGATE(LOSSES ONLY) No Aggregate Limit
DEDUCTIBLE FACTOR .295
DEDUCTIBLE PREMIUM $437,739
LOSS FUND None
LETTER OF CREDIT $250,000 Surety Bond. See attached.
LARGE DEDUCTIBLE PLAN
TERMS AND CONDITIONS
1. Premium includes commission.
2. Paid claims will be direct billed monthly,with payment due in twenty(20)days.
3. The Bond is due and payable at inception of coverage.The Bond will be retained until all claims are closed.
Failure to provide the Bond by 01/01/2026 will result in the issuance of a 30 day notice of cancellation of the
policy for failure to meet financial requirements of the alternative pricing program.
4. The Bond must be issued on an"A"rated carrier.The Bond amount is subject to review at twelve months,
and at least annually thereafter,and according to statutory requirements may be adjusted if indicated.
5. Large deductible policies are subject to audit.
6. We reserve the right to request immediate reimbursement of any single claim payment exceeding half the
loss fund amount.
PREMIUM PAYMENT PLAN
9 stipulated billings each equal to 1/9th of the total estimated annual premium paid directly to Pinnacol
Assurance.A physical audit will be completed shortly after the policy expires.The loss fund and monthly paid
claims are in addition to the 9 deductible premium payments.
Policy number: 4234402
Name of Insured: Weld County
endorsement effective 01/01/2026 12:01 A.M. standard time
(The information above is required only when this endorsement is issued subsequent to preparation of the policy)
THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY
This endorsement modifies insurance provided under the following:
WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY
DEDUCTIBLE ENDORSEMENT
(ALLOCATED EXPENSE INCLUDED WITHIN THE DEDUCTIBLE LIMIT)
This deductible endorsement applies between you and us. It does not affect or alter the rights of others under the
policy.
A. How this deductible Applies
1. Each Occurrence; Each Claim; Loss Conversion Factor
In consideration of a reduced premium, 'You agree to reimburse us, up to the deductible amount shown
below, for the total of all sums we pay for:
a. all benefits required of you by the workers compensation or occupational disease law of the states
listed in the schedule of premium factors; plus
b. all sums you legally must pay as damages; plus
c. all "allocated loss adjustment expense"which arises out of any claim or suit we defend; because of(1)
bodily injury by accident to your employees arising out of any one"occurrence"; (2) bodily injury by
disease to your employee arising out of any one"claim".
In addition to the deductible amount, you agree to pay us for the cost of claim handling produced by the
application of the"loss conversion factor," if one is shown in the schedule of deductibles below.
2. Policy Period Aggregate
If an amount is shown in the schedule of deductibles below as aggregate, the most you must reimburse
us for is the sum of all benefits, damages and "allocated loss adjustment expense" because of bodily
injury by accident and bodily injury by disease for each policy period, limited to the amount of the
aggregate, plus the cost of claim handling produced by the application of the "loss conversion factor", if
one is shown in the schedule of deductibles.
You are obligated to reimburse us for losses and expenses equal to the full amount of the aggregate even
if:
(a) this endorsement is issued for a term of less than one (1) year or
(b) the policy, or this endorsement, is canceled for any reason by you or by us before the end of the
policy period.
SCHEDULE OF DEDUCTIBLES
Coverage Deductible Amount Basis
Bodily Injury By Accident: $750,000 each Occurrence
Bodily Injury By Disease: $750,000 each Occurrence
All Covered Bodily Injury Aggregate: * Unlimited No aggregate Limitation
Loss Conversion Factor: 1.10
*Unlimited unless a percentage is entered in the blank space
Page 1 of 3 WC 99 06 25A (9-2005)
The premium you must pay for this endorsement will be determined by multiplying the premium factor for each
state in which this deductible applies by the"adjusted standard premium" you would be required to pay in each
such state if this endorsement did not apply. The premium factors and states to which the deductible applies
appear in the schedule of premium factors below.
SCHEDULE OF PREMIUM FACTORS
State Premium Factor
Colorado .295
B. Effect of the Deductible on Limits of Liability
With respect to the Employers Liability Insurance provided by this policy, the applicable "each employee",
"each accident", "policy" or other similar limits of liability are reduced by the sum of all damages (other than
"allocated loss adjustment expense")within the applicable deductible amount shown in the schedule of
deductibles. The limits of liability shown in item 3.B. of the Information Page of this policy include and are not in
addition to the deductible amount. This provision applies whether the Employers Liability Insurance is provided
by PART TWO or by an endorsement to this policy.
C. Definitions
1. Allocated loss adjustment expense for losses means:
a. fees of attorneys or other authorized representatives where permitted for legal services, whether outside or
staff representative,
b. Court, alternative dispute resolution and other specific items of expense such as: medical examinations of 3
claimant to determine the extent of the carriers liability, degree of permanency or length of disability, expert
medical or other testimony. autopsy, witnesses and summonses, copies of documents such as birth and death
certificates, Medical or other treatment records; arbitration fees; surveillance: appeal bond costs and appeal
filing fees.
c. Medical cost containment expenses incurred with respect to a particular claim, whether by an outside vendor
or done internally by an employee for the purposes of controlling losses, to ensure that only reasonable and
necessary costs or services are paid. The expenses include: bill auditing expenses for any medical or
vocational services rendered, including hospital bills inpatient or outpatient), nursing home bills, physician bills,
chiropractic bills, medical equipment charges, pharmacy charges, physical therapy bills, medical or vocational
rehabilitation vendor bills, hospital and other treatment utilization reviews, including pre-certification /pre-
admission, concurrent or retrospective reviews. Preferred provider network/organization expenses, medical
fee review panel expenses.
d. Expenses which are not defined as losses and are directly related to and directly allocated to the handling of a
particular claim for services which are required to be performed by statute or regulation.
2. "Claim" means a demand you receive for:
a) Benefits required of you by the workers compensation law; or
b) damages covered by this policy; including a filing by your employee for such benefits with an agency
authorized by law, or a suit or other proceeding brought by your employee for such benefits or
damages, "By your employee" includes such action taken by others legally entitled to do so on his or
her behalf.
All claims for benefits or damages because of bodily injury by the same or related diseases to any one
person will be considered as one claim when determining how the deductible amounts apply.
3. "Occurrence" means a single accident, which results in bodily injury to one or more of your employees.
4. "Loss conversion factor" means a factor applied to all amounts included within the deductible, to
compensate us for those costs of handling claims which are not included in "allocated loss adjustment
expense."The loss conversion factor shall not be applied to any amounts of benefits, damages or" loss
adjustment expense"that are not included within the deductible.
5. "Standard premium" means the premium calculated in accordance with Part Five-Premium of this policy,
but it does not include the premium discount credit and the self-rating adjustment. "Adjusted standard
Page 2 of 3 WC 99 06 25A (9-2005)
premium" means the premium calculated in accordance with Part Five-Premium of this policy, including the
premium discount credit and the self-rating adjustment. However, if you or we cancel the policy or this
endorsement before the end of the policy period, the calculation of the aggregate which is based on
"standard premium" shall be calculated in accordance with Part Five-Premium, extended to the amount
that would have been charged for the original policy period.
D. Conditions
1. Recovery from Others
We have your rights and the rights of persons entitled to the benefits of this insurance to recover all
advances and payments, including those within the deductible amount from anyone liable for the injury.
You will do everything necessary to protect those rights for us and to help us enforce them.
If we recover any advance or payment made under this policy from anyone liable for the injury, the amount
we recover, less expenses to recover against third parties, will first be applied to any payments made by us
in excess of the deductible amount; then the remainder of that recovery, if any will be applied to reduce the
deductible amount paid by you.
2 Cancellation
If you fail to comply with the terms of this endorsement, we will apply the same cancellation terms of this
policy as apply to non-payment of the policy premium.
If we cancel In accordance with the prior paragraph, your obligation to reimburse us as required by other
terms of this endorsement is not waived, and we will retain our right to enforce such deductible if necessary.
3. Your Duties
a. The first Named Insured shown In the Declarations agrees and is obligated on behalf of all Named
Insured(s) to reimburse us for any deductible amounts that we expend.
b. Each named Insured is jointly and severally liable for all deductible amounts under this policy.
4. Other Rights and Duties (Ours and Yours)
a. All other terms of this policy, not in conflict with this endorsement, apply irrespective of the application of this
endorsement.
b. Failure by you to reimburse us for deductible amounts due us will not affect coverage for an eligible employee
under this policy.
5. Payment of Benefits
Pinnacol Assurance is liable to pay workers' compensation benefits directly to the employee or
the employee's dependents, in the event of death.
THIS WORKERS COMPENSATION POLICY CONTAINS A DEDUCTIBLE OPTION, UNDER WHICH YOU, THE
EMPLOYER,ARE REQUIRED TO REIMBURSE CERTAIN LOSSES. PLEASE READ THIS POLICY CAREFULLY
AND UNDERSTAND ITS CONDITIONS THOROUGHLY PRIOR TO PURCHASING COVERAGE.
Nothing herein contained shall be held to vary, waive or extend any of the terms, conditions, agreements or
limitations of this policy other than as stated above.
I hereby declare that I have read, understand, and agree with all the terms, conditions and obligations
of this, Large Deductible Endorsement, attached to and made a part of this policy, and the multiple
billings of the deductible claim payments made until all claims are closed.
Name of the Insured: Weld County Government
� r
By: � ttest:W.� ) �° "`�'"t°
Scott K. James ther . Gesi k, Clerk to the Board
ti
Title: Chair, Board of Weld County Commissioners ��,fi t
- �4v2
rr =� •
Date: JAN 0 2026 �����, p ty C er tote Board
Nothing herein contained shall be held to vary, waive erms, conditions, agreements or limitations of
this policy other than as stated above.
Page 3 of 3 WC 99 06 25A (9-2005)
Contract Form
Entity Information
Entity Name* Entity ID* 0 New Entity?
PINNACOL ASSURANCE @00012504
Contract Name* Contract ID Parent Contract ID
WORKERS COMPENSATION RENEWAL 2026 10188
Requires Board Approval
Contract Status Contract Lead* YES
CTB REVIEW BPETERSON
Department Project#
Contract Lead Email
bpeterson@weld.gov
Contract Description*
THE COST FOR THE 2026 PREMIUM SHOWS AN OVERALL 3% INCREASE FROM 2025 WITH A TOTAL PREMIUM
ESTIMATED AT $477,790. THE INCREASE IN PREMIUM IS PRIMARILY DUE TO THE INCREASE IN WAGES.
Contract Description 2
REVISED TO REFLECT RENENAL PREMIUM REDUCTION FROM $452,796.00 TO $437,739.00
Contract Type* Department Requested BOCC Agenda Due Date
RENEWAL HUMAN RESOURCES Date* 12/18/2025
12/22/2025
Amount* Department Email
$477,790.00 CM- Will a work session with BOCC be required?*
HumanResources@weld.g NO
Renewable*
ov
YES Does Contract require Purchasing Dept. to be
Department Head Email included?
Automatic Renewal CM-HumanResources-
Grant DeptHead@weld.gov
IGA County Attorney
GENERAL COUNTY
ATTORNEY EMAIL
County Attorney Email
CM-
COUNTYATTORNEY@WEL
D.GOV
If this is a renewal enter previous Contract ID
If this is part of a MSA enter MSA Contract ID
Note: the Previous Contract Number and Master Services Agreement Number should be left blank if those contracts
are not in OnBase
Contract Dates
Effective Date Review Date* Renewal Date*
01 /01 /2026 12/01 /2026 01 /01 /2027
Termination Notice Period Committed Delivery Date Expiration Date
01 /01 /2027
Contact Information
Contact Info
Contact Name Contact Type Contact Email Contact Phone 1 Contact Phone 2
Purchasing
Purchasing Approver Purchasing Approved Date
Approval Process
Department Head Finance Approver Legal Counsel
JILL SCOTT RUSTY WILLIAMS BYRON HOWELL
DH Approved Date Finance Approved Date Legal Counsel Approved Date
12/18/2025 12/18/2025 12/19/2025
Final Approval
BOCC Approved Tyler Ref#
BOCC Signed Date AG 010526
Originator
BOCC Agenda Date BPETERSON
01 /05/2026
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