TITLE
title
APPROVE FY2025-2026 PROPERTY AND EXCESS WORKERS’ COMPENSATION INSURANCE
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SPONSOR
sponsor
Jason Jones, Assistant County Manager for Quality Government / Interim Risk Management Director
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BACKGROUND
background
Arthur J. Gallagher Risk Management Services LLC (Gallagher), on behalf of Guilford County, competitively marketed both excess workers’ compensation and property insurance coverage for FY2025-2026 (FY26). Excess workers’ compensation insurance coverage has been recommended by Gallagher to transition to Midwest Employers Casualty Company from Safety National Casualty Corporation and property insurance has been recommended by Gallagher to transition to Hiscox/Liberty Mutual etal from Travelers Indemnity Company for July 1, 2025, through June 30, 2026.
The County’s excess workers’ compensation insurance premium for FY26 will decrease by $77,223 from $327,091 to $249,868 which is a decrease of 23.61%. The County’s property insurance premium for FY26 will decrease by $177,932 from $776,514 to $598,582 which is a decrease of 22.91%. With the premium decrease, we will also see significant coverage enhancements across the board.
The total proposed premium cost for both policies for FY26 is $848,450 compared to our total premium cost of $1,103,605 for FY25. This represents an overall premium decrease of $255,155 or 23.12%. No additional County funds will be required, pending the adoption of the FY26 budget, as all premiums and adjustments have been planned for in the FY26 budget. Gallagher binds coverage and the County reimburses Gallagher for the insurance premiums paid by them to bind coverage.
Midwest Employers Casualty Company has also offered their coverage with a two-year premium guarantee, meaning, with Board approval we would lock in the same premium amount for our excess workers' compensation insurance policy for FY27. We do typically see premium increases with any increases in overall payroll from year-to-year so staff are reco...
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