KYTC Workers Comp Excess Insurance

The Commonwealth of Kentucky, through the Kentucky Transportation Cabinet (KYTC), issued a Request for Bid (RFB 758 2200000059) on July 28, 2021, seeking excess workers' compensation insurance coverage for a one-year policy period commencing August 24, 2021, through August 24, 2022, with four optional one-year renewal periods available by mutual written agreement. The procurement requires bidders to provide excess workers' compensation insurance with a limit of liability of $10,000,000 per accident, employers' liability coverage with a limit of $1,000,000 per accident, and a self-insured retention of $1,000,000 per accident on a flat premium basis without audit, covering approximately 4,800 employees with an annual payroll of approximately $197 million. Bidders must be electronically registered in the Commonwealth eProcurement System and submit bids online only; paper bids are not acceptable, with a bid closing date of August 9, 2021, at 1:30 PM ET. Written questions regarding the solicitation were due by August 2, 2021, at 10:00 AM ET. Award will be made on a best value basis with price as the sole measurable criterion worth 100 points, with the lowest-priced bidder receiving maximum points and other bidders receiving points calculated proportionally based on their submitted premiums. Minimum requirements evaluated on a pass/fail basis include holding a Certificate of Authority from the Commonwealth of Kentucky or qualifying as an eligible surplus lines insurer, maintaining an A.M. Best rating of B+ or better, providing required endorsements, and complying with all applicable federal, state, and local regulations under Kentucky Revised Statutes Chapter 304. Additional mandatory submissions include the completed Bidder Information Sheet, Bid Quotation Form 1, Bid Specification Deviation Form 1A, Bid Specification Enhancement Form 1B, signed Invitation for Bid, Annual Affidavit, Revenue Form 10A100, and EEO forms if applicable, with the selected bidder required to furnish a binder within 10 days of award and no later than two days prior to the coverage effective date, with original policies and endorsements due within 45 days.

Kentucky resident bidders are eligible for reciprocal preference against nonresident bidders registered in states providing preference to their own residents, and qualified bidders including Kentucky Correctional Industries and nonprofit agencies serving individuals with severe disabilities are eligible for preferences up to 20 percent of maximum points. Bidders claiming resident or qualified bidder status must provide supporting documentation demonstrating authorization to conduct business in Kentucky, filing of corporate income taxes, unemployment insurance contributions, and maintenance of workers' compensation insurance for the year prior to contract advertisement, or for nonprofits, employment of individuals with severe disabilities for at least seventy-five percent of direct labor hours. The KYTC currently maintains historical claims data spanning 2011 through 2021, with total incurred claims ranging from $843,814.05 to $3,999,972.47 annually, providing bidders with comprehensive loss run information to inform their premium calculations and risk assessment. Premium payment is due within 30 days on an annual basis, with the Kentucky Premium Surcharge of 1.8% applicable and must be stated separately on all bids. The insurer must provide 90 days' notice for cancellation or non-renewal, and any rate adjustments for subsequent policy years require written notification at least 90 days prior to expiration. No specific budget range or award value is disclosed in the solicitation documents; however, the contract award will be determined by the responsive, responsible bidder meeting all minimum criteria with the lowest annual premium, with prices remaining firm for ninety days after the bid due date and for the first twelve months of the contract term, with any subsequent price increases requiring written justification based on industry-wide cost changes and Commonwealth approval.