Title
Human Resources Department, Risk Management Division, recommending the Board:
1) Approve the County purchase first-dollar workers’ compensation insurance coverage through the Primary Workers’ Compensation Program and eliminate the current $300,000 self-insured retention for workers’ compensation; and
2) Adopt and authorize the Chair to sign Resolution 187-2018 authorizing the Director of Human Resources or the Risk Manager to submit an application to the Director of Industrial Relations, State of California, for a Certificate of Consent to Self-Insure by Interim Self Insurer related to workers’ compensation liabilities on behalf of the County of El Dorado and to execute any and all documents required for such application.
FUNDING: Internal Service Fund.
Body
DISCUSSION / BACKGROUND
Since May 1, 1992, the County of El Dorado (County) has been a member of the California State Association of Counties Excess Insurance Authority (CSAC-EIA), a member-directed risk sharing pool of counties and public entities committed to providing risk coverage programs and risk management services which are competitive, available, responsive, equitable and stable.
The CSAC-EIA currently offers two Workers' Compensation Programs:
1. Excess Workers' Compensation (EWC)
Under this program, a member entity must have a Certificate of Consent to Self-Insure from the Department of Industrial Relations. (The County has had such a certificate since January 1, 1979.) Each member selects from among the available Self-Insured Retention (SIR) levels, currently at $125,000 to $5,000,000. There are approximately 178 members, including 49 counties. Members must bear the cost and provide the administration and defense of claims themselves, which may be in-house or outsourced. The costs to administer the claim, regardless of whether claims administration is done in-house or by an outside Third Party Administrator (TPA), are never reimbursed, not even when the costs exceed the SIR. Likewise...
Click here for full text