Board approves insurance renewal, opts for higher deductible to cut premium by roughly $600,000
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Summary
The board approved an insurance renewal package recommended by broker Cliff Taylor, selecting Option 2 which raises the village's self-insured retention to $500,000 and lowers the annual premium by about $600,000 (from approximately $2.1M toward $1.5M).
The Village of Dalton Board of Trustees voted Aug. 4 to approve a new liability insurance renewal recommended by broker Cliff Taylor. Trustees approved the broker’s Option 2, which raises the village’s self-insured retention (SIR) to $500,000 and reduces the annual premium to roughly $1.5 million — a reported savings in premium of about $600,000 from the prior arrangement.
Cliff Taylor told the board the Cook County insurance market has been difficult and that last year the village lost a major carrier, requiring split coverages. Taylor said the new carrier offers combined coverage limits of $5,000,000 for many lines and an option to buy up to higher excess limits if the board chooses. “I do recommend option 2,” Taylor said during his presentation.
Why it matters: Trustees said the premium savings will help near-term budgeting, but Attorney McGrath later noted that increasing the SIR means the village must pay defense and claim costs up to the $500,000 retention per claim; that exposure appears by design to lower premium costs.
Supporting details: Taylor read premium-summary figures in the packet and explained Option 2 increases the SIR (deductible-like retention) to $500,000, lowering the premium to about $1.5 million. The board approved the motion by roll call (motion by Trustee Stan Brown; second by Trustee Andrew Holmes) with all trustees voting aye.
Next steps and limitations: The village will proceed with the new carrier and the Option 2 structure; attorney and administration acknowledged the SIR increase will require continued effort to reduce claim volume so retention liabilities do not outpace savings.
Ending: Trustees and the broker described the renewal as a positive development in a tough market; staff will monitor claims and discuss excess-coverage options in the future.
