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Committee reviews insurance bid options, considers swapping excess risk to reduce SIR and premiums
Summary
The committee reviewed two insurance options and discussed swapping the excess‑risk layer to shift from a $1 million self‑insured retention (SIR) to a $500,000 SIR and move liability placement to a new carrier (Palomar); staff were asked to follow up with the broker for changes before renewal.
Sumner County’s Self Insurance Board Committee revisited recent insurer bid results and discussed restructuring coverage layers to lower the county’s self‑insured retention and premium.
Staff reviewed the two options previously presented and told the committee that by pulling liability coverage out of one bid and placing the excess portion with the other option, the county could reduce its SIR from $1 million to $500,000 and materially lower the liability premium. The staff summary said option 1’s liability premium was roughly $412,706 (transcript shows figures described as $4.12 and $7.06 in hundreds of thousands), while option 2’s liability premium was about $371,000; swapping the excess portion would also save approximately $500,000 on the SIR exposure.
Committee members had asked the broker, Jeremy, to confirm whether policies were truly stand‑alone or required bundling. Staff said initial broker communications were unclear because pollution and certain coverages had been moved between options during the bid submission process; after clarification staff concluded the liability layer could be separated and relocated to the lower‑cost option.
A staff member requested the committee amend last month’s direction and instruct the broker to proceed with option 1’s base package while placing the excess liability with the lower‑cost option (the transcript names Palomar as the insurer picking up several former clients). Staff asked committee members to confirm quickly so the broker could lock the change before final renewals.
The transcript shows staff sought prompt direction to proceed and suggested a phone call to the broker to confirm the swap; the committee discussion closed with an instruction to follow up but a formal roll‑call changing the earlier motion is not recorded in the provided transcript.
