Guam – Workers compensation insurance was the focus of discussion during today's Port Authority of Guam board meeting.  The agency is required by law to have the insurance but for years has been self-insuring paying for expenses from their regular budget.  For the last three years, the Port has spent between $100,000 and $150,000 on workers compensation claims.

In order to comply with the law, the Port put out a bid for insurance but only one vendor submitted a proposal and it's estimated it will cost close to one million dollars for three years of coverage. Christine Baleto said, "This is a substantial increase. We can't afford it," leading chairman Dan Tydingco to add, "I don't disagree with you. That's why I'm saying it's very cost prohibitive based upon the stuff we've received through the normal course of the procurement process but it's very cost prohibitive so I can appreciate the limitations we have here financially but we have to also understand that we have to respect that little thing called the law."

The board passed a motion agreeing to draft a resolution asking Senator Tom Ada introduce legislation that would change a single word in the current law that states the port "shall" have workers compensation insurance.  The board is asking that the language change to "may" to allow the port to continue self-insuring. Tydingco is set to meet with Senator Ada on Monday to further discuss the matter. 

In case the legislation isn't introduced, the port has asked if the vendor will consider providing a quote to insure the agency through the end of the fiscal year.