Commissioners briefed on insurers, premiums and deductible tradeoffs for county property and casualty coverage

Newton Jennings, presenting insurance renewal options, told the Carroll County Board of Commissioners that the county’s loss history has improved since 2022 and described two primary options for property and casualty insurance: the incumbent carrier (Liberty Mutual) and a newer market entrant (Obsidian).

Jennings said Liberty Mutual offered continuity and lower deductible tiers (current liability/auto/property deductible structure includes $50,000 on liability and lower physical‑damage deductibles on many vehicles) and that Liberty’s renewal proposal had been negotiated down to an overall premium increase of roughly 7.9% (about $127,000) over last year in the package shown. He said a $50,000 deductible option would not require collateral; a $100,000 deductible option would require an estimated $345,000 of collateral to secure the higher self‑insured retention.

Jennings described Obsidian’s proposal as carrying a lower face premium but substantially higher deductibles: a $100,000 deductible on general liability, umbrella and auto, and a flat $100,000 physical‑damage deductible on vehicles (meaning the county would self‑insure most claim amounts under that threshold). He said Obsidian would require the county to engage a third‑party administrator (TPA) for claims handling; the broker estimated average TPA costs could be about $40,000 yearly and the high end near $70,000 depending on claim frequency and complexity. Jennings also noted Obsidian is A‑minus rated and smaller financially than Liberty Mutual, which is a much larger, A‑rated carrier.

Commissioners asked about flood and earthquake coverage; Jennings said both carriers will require separate flood policies if a county location is in a flood zone. Commissioners also requested a historical average of losses to calculate likely out‑of‑pocket exposure under higher deductible options. Jennings and staff emphasized that premium comparisons must include expected deductible and TPA costs to be apples‑to‑apples.

Chairman Morgan said he left Liberty Mutual in the draft budget with a $50,000 deductible for Tuesday’s budget vote because of Liberty’s market presence, the county’s recent history with the carrier and uncertainty about third‑party fees from Obsidian; he reminded commissioners they could make motions on Tuesday to change the budget item. No final procurement decision was made during the work session.

Staff made documents available showing four years of loss summaries, the Liberty Mutual proposal and the Obsidian proposal; Jennings and county staff offered to provide additional breakdowns and a five‑year average of losses to support the commissioners’ decision prior to the budget vote.