Falls City approves multi-carrier insurance renewal, opts for LARM portfolio with Cincinnati boiler coverage

At a City of Falls City meeting, the council voted 6-0 to approve an insurance renewal approach that uses LARM (Local Association Risk Management) for most municipal coverage and retains Cincinnati for the city’s boiler-machinery exposure and certain utility properties.

The action matters because higher premiums and shifting carrier availability — including an apparent change by EMC in the region — had left the city facing substantially higher renewal quotes or multiple separate policies. Council members and staff discussed options from EMC, LARM, Travelers, Continental Western and brokers Miller Ferrell/Miller Farrell, and weighed a multi-year commitment and buy-down options to reduce premiums.

Staff member (Speaker 2) outlined three packaged options in the meeting materials and described how EMC’s portfolio changes and regional market shifts have raised premiums and altered deductibles. The packet showed the government side and the utility side as separate components; staff said EMC’s renewal excluded workers’ compensation and that some buildings (including Pritchard and Christian Auditorium) had been separated out in bids. Speaker 2 told the council that “EMC’s essentially … getting out of Nebraska” and that Continental Western might be closer to past EMC pricing but numbers were not available in time for the meeting.

Councilmember (Speaker 5) argued for consolidating coverage where possible. “I don't see a need to bring Travelers in at all if that's all we need them for and if that's such significantly higher cost,” Speaker 5 said, adding that LARM offers ancillary benefits and a relationship the city could expand into other coverages. Speaker 5 moved to accept “option C” and keep Cincinnati for the boiler-machinery/utility component; another member seconded the motion. The motion passed with six affirmative votes.

During discussion, staff and council members flagged several specifics and uncertainties: a separate policy quote for Pritchard was mentioned at about $55,000; the packet included an “option A” total expressed around $667,000 before adjustments and an “option C” scenario cited near $585,000; LARM’s comparable bid for the government side was discussed at roughly $267,953 (apples-to-apples basis) and a one-year alternative was listed as about $282,055. Staff emphasized that some quoted numbers were estimates or incomplete — for example, a Continental Western quote was not available at the time of the meeting and would require a short-year transition if the city were to switch carriers mid-plan year.

Council discussion also covered deductibles — staff said some carriers were moving to per-building wind-and-hail deductibles of $25,000 — and the unique availability of boiler-machinery coverage through Cincinnati. Staff advised that Cincinnati would not provide the boiler-machinery line without certain utility-property placements, making Cincinnati the only current source for that specific coverage.

Council members discussed a multi-year contract option with LARM that carries a 5% discount for a three-year commitment (smaller discounts for shorter terms) and the need to pick a specific ALARM/LARM option inside the resolution. Staff said adopting the resolution for the government-side agreement (ALARM/LARM) and taking a subsequent action on the Cincinnati/Miller Ferrell component would together finalize the city’s insurance renewal strategy.

The meeting record shows the council approved the insurance action and the related resolution language to allow staff and the mayor to execute the necessary documents; staff indicated they would return or follow up with the Cincinnati/Miller Ferrell component as a separate action.

Less critical procedural items discussed during the session included roll call and agenda approval; no other formal insurance-related amendments were recorded in the meeting minutes.