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Kennett City administrator authorizes short-term renewal after insurance lapsed at midnight
Summary
City Administrator Steve said Kennett City’s vehicle, property and workers’ compensation insurance would have lapsed at midnight, so he authorized a short-term renewal; council will get a broker briefing at the next meeting and the renewal cost will be returned for formal approval.
Kennett City Administrator Steve told the Kennett City Council on July 2 that the city’s vehicle, property and workers’ compensation insurance would have lapsed at midnight and he authorized continuation to avoid any uninsured gap.
The move preserves coverage while staff secures a broker explanation and options for the council. “We did not want to have midnight of last night come, and we go a minute without having vehicle and property insurance done,” Steve said.
Why it matters: an uninsured lapse could expose the city to liability for accidents, property damage or worker claims. Steve said the renewal will be brought back to the council at the next meeting with the broker present so members can review cost and alternatives.
Steve told the council the short-term payment could be replaced if the council chooses a different insurer later. “They said, well, they will just pay it. We will only owe them for the 2 weeks that we had, and And if we do another, contract, we can do it with someone else or you can approve it then,” Steve said. He added that the “worst thing it will cost us is the premium for these 2 weeks.”
Council members did not take a formal vote at the meeting; Steve said staff will bring full documentation and vendor explanations at the next regular meeting so the council can consider formal approval or an alternative contract.
