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Falls City hears insurance-pool presentation as tight market raises deductibles
Summary
The League Association of Risk Management (LARM) presented an alternative municipal insurance program after staff warned renewal quotes could include much higher wind/hail deductibles; council will wait for full quotes before deciding.
The City of Falls City received a presentation from the League Association of Risk Management (LARM) on municipal insurance options as the city awaits renewal quotes.
Clint Simmons, a LARM representative, told the council that current market conditions are driving much higher wind and hail deductibles and that LARM’s pool can offer lower per-event exposure and a suite of loss-control services for member municipalities.
Simmons said LARM insures about 225 Nebraska communities and provides services beyond a policy, including property valuations, grant opportunities, safety trainings, and a small annual safety reimbursement for equipment. He warned that some commercial carriers are moving to per-building wind/hail deductibles; he cited examples where a per-building approach could raise a deductible to tens or hundreds of thousands of dollars if multiple buildings are damaged. He contrasted that with LARM’s quoted structure where a single, smaller deductible could apply across multiple damaged items.
Simmons recommended keeping public-works coverage with Cincinnati (the carrier for public works facilities) because Cincinnati provides boiler and machinery coverage that LARM would not cover for that exposure. He said LARM would quote municipal liability, property, inland marine, autos and work comp and that members can choose one-year to three-year participation with escalating premium discounts for longer commitments.
Councilmembers and staff said they are awaiting full renewal numbers from the city’s broker and expected full comparables later in the week; no final decision was made at the meeting.
Simmons also outlined member services such as continuing education for law enforcement, contract reviews, annual equipment and property valuations, and a loss-control video library. He said the pool requires an interlocal agreement and a council resolution to join and that most members opt for multi-year participation because of budget predictability and discounts.
