Council approves higher municipal insurance policies after briefing on rate surge

The Parma City Council on Feb. 18 adopted two insurance measures after a detailed finance committee briefing that described sharp market-driven premium increases.

Council amended and passed Ordinance 214-24, authorizing municipal excess liability insurance through a package of carriers (Vantage Risk Specialty, Munich Insurance, Travelers, Tokyo Marine and Lloyd's of London) with an indicated total of $667,080 for the policy period. The ordinance was placed on third reading and adopted after amendment.

Council also amended and adopted Ordinance 215-24, authorizing a special multiperil property policy (FM Global-affiliated and Hanover through Jackson Daikin Insurance Agency) for $205,312 as the third reading was waived and the ordinance adopted as amended.

During committee discussion, the law department and administration explained the increase was driven by a tightening market and consolidation among municipal insurers. An assistant to the law director told council the city’s overall coverage level would remain at $10 million but premiums “approximately doubled” over the previous cycle. Officials also said deductibles have increased: general claims deductible moved from $50,000 to $100,000 and police-related claims now carry a $250,000 deductible.

Council members asked for details about outstanding claims; the law representative said two claims were currently in litigation and that the city resolved one jail-death claim in the prior cycle. Auditor Brian Day confirmed funding sources for the insurance payments come from general fund transfers and other established accounts; he said some money had been set aside but that he would follow up with exact balances.

The ordinances authorizing the two contracts passed on roll calls recorded during the Feb. 18 council session.