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Home My WebLink About20243377.tiffcunkt/ada �l lol BOARD OF COUNTY COMMISSIONERS PASS -AROUND REVIEW PASS -AROUND TITLE: Workers Compensation Renewal DEPARTMENT: Human Resources PERSON REQUESTING: Kelly Leffler, Jill Scott DATE: December 5'fl, 2024 Brief description of the problem/issue: As we prepare to flialize our Workers Compensation renewal for 2025 Gallagher needs final approval from the BOCC to move forward by providing signature on the attached documents. The total premium cost for 2025 will be $477,652 showing a 6% decrease from premium of $507,972 in 2024. Attached to this pass around you will find the Client Authorization to Bind agreement that authorizes Gallagher to bind the renewals, the workers compensation and the two bonds, on behalf of Weld County. You will also see the Pinnacol Proposal document from Pinnacol outlining the terms of the renewal. This is requested by Pinnacol to confirm that Weld County agrees to cover the deductible amount of $750k and the claims handling charge of 10% of paid losses. The third document is the Pinnacol Collateral Agreement that confirms Weld County agrees to post financial collateral in the amount of $250k, which the Travelers bond is put in place to meet this requirement. What options exist for the Board? The B0CC can rev ew the attached documents and agree to sign to allow Gallagher to move forward with the Workers Compensation renewal for 2025, or the BOCC can decline to move forward. Consequences: If declined to move forward, the County is at risk of not having workers compensation insurance to cover injuries that take place while on shift. If signed, Weld County will remain using Pinnacol as our workers compensation insurer. Impacts: If declined to sign, Weld County could suffer financial loss from a large workers compensation claim because we no longer are insured. If the attached documents are approved and signed, there will be no negative impact, as we will remain using Pinnacol as our workers compensation insurer. Costs (Current Fiscal Year / Ongoing or Subsequent Fiscal Years): The cost of the 2025 premium is showing a 6% decrease from 2024. with a total cost of $477,652. Each year the premium is subject to change and is decided upon through the renewal process. Recommendation: It is recommended that the BOCC approve to move forward with the attached documents by signing the bottom of page 2 on the Client Authorization to Bind document, signing the bottom of page 5 on the Pinnacol Proposal and by signing the bottom of page 1 on the Pinnacol Collateral Agreement. can POTXCSLLU leart3/Z4 c_cf:.()nba [LI L3/Z4 2024-3377 FOO3Cc Support Recommendation Schedule Place on BO00 Agenda Work Session Other/Comments: Perry L. Buck, Pro -Tern Mike Freeman Scott K. James Kevin D. Ross , Chair Lori Saine y4/ Karla Ford From: Sent: To: Subject: Approve Sent from my iPhone Mike Freeman Monday, December 9, 2024 8:14 AM Karla Ford Re: Please Reply - HR PA On Dec 9, 2024, at 9:36 AM, Karla Ford <kford@weld.gov>wrote: Please advise if you support recommendation and to have department place on the agenda. Karla Ford X Office Manager Board of Weld County Commissioners 1150 O Street, P.O. Box 758, Greeley, Colorado 80632 :: 970.336-7204 :: kford weld.gov :: www weldgov.com **Please note my working hours are Monday -Thursday 7:00a.m.-4:00p.m.** <image009. jpg> Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Kelly Leffler <kleffler@weld.gov> Sent: Friday, December 6, 2024 8:53 AM To: Karla Ford <kford@weld.gov> Cc: Cheryl Pattelli <cpattelli@weld.gov>; Jill Scott <jscott@weld.gov> Subject: FW: Please review PA Good Morning Karla! Will you please process the attached PA! Thank you! PINNIACOL ASSURANCE 7501 E. Lowry Blvd. Denver, CO 80230-7006 www.pinnacol.com December 3, 2024 Weld County 1150 O Street Greeley, CO 80632 Subject: Large Deductible Collateral Requirements — 2025 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 fail.ire 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. Kevin D. Ross, Chair Board of Weld County Commissioners ATTEST: B ad441‘ lerk to the Board Deputy Clerk to the E3 and CC: Alec Hagen, Pinnacol Assurance Sarah Bensman, Sr Business Director, Pinnacol Assurance 3fenzei Michael Smith Sr Underwriter, Pinnacol Assurance 207J-1 -3311 PINNIACOL ASSURANCE 7501 E. Lowry Blvd. Denver, CO 80230-7006 www.pinnacol.com WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE PROPOSAL Weld County 4234402 POLICY PERIOD 01/01/2025 to 01/01/2026 PART ONE - WORKERS COMPENSATION INSURANCE Colorado Statutory Requirements. PART TWO - EMPLOYERS LIABILITY Bodily Injury by Accident - Each Accident Limit Bodily Injury by Disease - Each Employee Limit Bodily Injury by Disease - Policy Limit PREMIUM BASIS Total Estimated Annual Payrolls NCCI -Experience Modification Standard Premium Adjusted Standard Premium Expense Constant TER CAT Total Expense Constant/TER/CAT (due in addition to deductible premium) $1,000,000 $1,000,000 $1,000,000 $159,486,698 .72 $1,708,785 $1,540,590 $160 $7,974 $15,949 $24,083 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) DEDUCTIBLE FACTOR DEDUCTIBLE PREMIUM LOSS FUND No Aggregate Limit 286 $440,609 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 01/01/2025 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 1/9. 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 Cou endorsement effective 01/01/2025 12 01 A M standard time (The information above is equired 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 requir d of you by the workers compensation or occupational disease law of the states listed in the sched le of premium factors, plus all sums you legal must a as damages, b 9 Y payPlus 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 Bodily Injury By Accident $750,000 Bodily Injury By Disease $750,000 All Covered Bodily Injury Aggregate * Unlimited Loss Conversion Factor 1 10 Basis each Occurrence each Occurrence No aggregate Limitation *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 Colorado Premium Factor 286 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 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 aiy 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 amcunt 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 erdorsement 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 endorsemert. 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 payme jil all claims are closed. Name of the Insured: By: Kevin D. Ross Title: Chair, Board of Weld County Commissioners Date: CEC 2 3.. ATTEST: 4`` Deputy Clerk to the°Board 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. Page 3 of 3 WC 99 06 25A (9-2005) Weld County, Colorado Client Authorization to Bind Coverage Gallagher •CORE 360 After careful consideration of Gallagher's proposal dated December 20, 2024, we accept the following coverage(s). Please check the desired coverage(s) and note any coverage amendments below: 1 Accept ❑ Reject EX Accept ❑ Reject Workers Compensation - CO Pinnacol Assurance Company Self -Insured Bond Travelers Casualty & Surety Company of America XI Accept ❑ Reject Pinnacol Collateral Bond Travelers Casualty & Surety Company of America *For this coverage, TRIA cannot be rejected Included* N/A N/A Additional Recommended Coverages Gallagher recommends that you purchase the following additional coverages for which you have exposure. By checking the box(es) below, you are requesting that Gallagher provide you with a Proposal for this coverage. By not requesting a Proposal for this coverage, you assume the risk of any uncovered loss. Other Coverages to Consider Malicious Attack/Active Shooter O Pollution Liability The above coverage(s) does not necessarily represent the entirety of available insurance products. If you are interested in pursuing additional coverages other than those listed in the Additional Recommended Coverages, please list below: Coverage Amendments and Notes: Exposures and Values You confirm the payroll, values, schedules, and any other information pertaining to your operations, and submitted to the underwriters. were compiled from information provided by you. If no updates were provided to Gallagher. the values. exposures 27 Ga agher Insurance ( Risk Management Consulting Weld County, Colorado ••• Gallagher *CORE 360 and operations used were based on the expiring policies. You acknowledge it is your responsibility to notify Gallagher of any material change in your operations or exposures. Additional Terms and Disclosures Gallagher is not an expert in all aspects of your business. Gallagher's Proposals for insurance are based upon the information concerning your business that was provided to Gallagher by you. Gallagher expects the information you provide is true, correct and complete in all material respects. Gallagher assumes no responsibility to independently investigate the risks that may be facing your business, but rather have relied upon the information you provide to Gallagher in making our insurance Proposals. Gallagher's liability to you arising from any of Gallagher's acts or omissions will not exceed $20 million in the aggregate. The parties each will only be liable for actual damages incurred by the other party, and will not be liable for any indirect, special, exemplary, consequential, reliance or punitive damages. No claim or cause of action, regardless of form (tort, contract, statutory, or otherwise), arising out of, relating to or in any way connected with the Proposal, any of Gallagher's services or your relationship with Gallagher may be brought by either party any later than two (2) years after the accrual of the claim or cause of action. Gallagher has established security controls to protect Client confidential information from unauthorized use or disclosure. For additional information, please review Gallagher's Privacy Policy located at https://www.ajg.com/privacy-policy/. You have read, understand and agree that the information contained in the Proposal and all documents attached to and incorporated into the Proposal, is correct and has been disclosed to you prior to authorizing Gallagher to bind coverage and/or provide services to you. By signing below, or authorizing Gallagher to bind your insurance coverage through email when allowed, you acknowledge you have reviewed and agree with terms, conditions and disclosures contained in the Proposal. By: Kevin D. Ross, Chair, Board of Weld County Commissioners Date: Print Name (Specify Title) Weld County Government Company Signature cA 2 ' 2024 ATTEST: By: lerk to th Board t Deputy Clerk to the Bob d 28 zoZy-33-T 1 allagher ce Risk Management I Consulting Contract Form Entity Information Entity Name * PINNACOL ASSURANCE Entity I D * @00012504 O New Entity? Contract Name* Contract ID WORKERS COMPENSATION INSURANCE RENEWAL 8961 Contract Status CTB REVIEW Contract Lead* ADYER Contract Lead Email adyer@weld.gov Parent Contract ID Requires Board Approval YES Department Project # Contract Description* WORKERS COMPENSATION RENEWAL WITH CLIENT AUTHORIZATION TO BIND AGREEMENT AUTHORIZING GALLAGHER TO BIND RENEWALS INCLUDING $750,000 DEDUCTIBLE AND CLAIMS HANDLING CHARGE OF 10% OF PAID LOSSES. Contract Description 2 THE PINNACOL COLLATERAL AGREEMENT CONFIRMS WELD AGREES TO POST A FINANCIAL COLLATERAL $250,000 TRAVELERS BOND. Contract Type * RENEWAL Amount * $477,652.00 Renewable* NO Automatic Renewal NO Grant IGA Department Requested BOCC Agenda Due Date HUMAN RESOURCES Date* 1 2 /14,'2024 12/18/2024 Department Email CM- HumanResourcesgweld.g ov Department Head Email CM-HumanResources- DeptHead@weld.gov County Attorney GENERAL COUNTY ATTORNEY EMAIL County Attorney Email CM- COU NTYATTORN EY@WEL D.GOV Will a work session with BOCC be required?* NO Does Contract require Purchasing Dept. to be included? NO If this is a renewal enter previous Contract ID If this is part of a MS.A 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 Termination Notice Period Contact Information Contact Info Contact Name Purchasing Purchasing Approver CONSENT Approval Process Department Head JILL SCOTT DH Approved Date 12/18;'2024 Final Approval BOCC Approved BOCC Signed Date BOCC Agenda Date 12/23/2024 Review Date* 12 05 2024 Committed Delivery Date Contact Type Contact Email Finance Approver CONSENT Renewal Date Expiration Date* 12/15:2025 Contact Phone 1 Purchasing Approved Date 12/18/2024 Finance Approved Date 12;"18/2024 Tyler Ref # AG 122324 Originator MRAIMER Legal Counsel CONSENT Contact Phone 2 Legal Counsel Approved Date 1 2 / 1 8. 2024 Hello