Page 52 - Yucaipa Valley Water District
P. 52
Director Memorandum 18-135
Date: October 16, 2018
Prepared By: Kathryn Hallberg, Implementation Manager
Subject: Overview of the Proposed Workers’ Compensation Insurance Policy
Renewal
Recommendation: That the Board authorizes the General Manager to execute the
necessary contracts with Redwood F&C Berkshire Hathaway for
workers’ compensation insurance.
Yucaipa Valley Water District currently has a workers’ compensation insurance policy with EPIC
Brokers with insurance coverage provided by Berkshire and Hathaway. The District maintains a
very good safety record that has allowed the broker to obtain multiple competitive proposals.
The attached spreadsheet details the proposals received. Redwood F&C Berkshire Hathaway
submitted a proposal for $117,066 and has the strongest rating of A++XV, which is the highest
rating given indicating sufficient financial capacity to provide the necessary policy limits.
Cal Mutual JPRIMA’s premium quote of $110,290 with a rating of A XII was less than Redwood
F&C Berkshire Hathaway but requires a 3-year commitment without a guarantee of price locking
the premium in the following years.
The quotes received were based on the Experience Modification Factor of 74%, which was an
increase from 60% in 2017. The methodology for calculating the Experience Modification Factor
is detailed below.
Yucaipa Valley Water District - October 16, 2018 - Page 50 of 151
