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Insurance agent reviews Mercer County coverage; spotlights discounts, equipment schedules and property valuations
Summary
An insurance adviser reviewed Mercer County’s general liability, inland marine and property coverage and suggested steps to claim cybersecurity discounts, adopt blanket equipment schedules and update building valuations to avoid coinsurance penalties.
An insurance specialist recommended several changes to county insurance practices at Wednesday’s Mercer County Commission meeting, highlighting potential premium savings, coverage gaps for mobile equipment, and outdated property valuations that could trigger coinsurance penalties.
Scott Fenrich of Bravera Insurance gave the commission a structured review of the county’s coverages, focusing on general liability, inland marine for mobile equipment, and commercial property limits. He said the county’s expiring general-liability premium is about $26,000 and described a state-initiated cybersecurity initiative that could yield roughly a 4% premium credit if the county documents certain IT monitoring and scanning protocols.
Inland-marine and equipment coverage: Fenrich pointed out that the county maintains a scheduled list of equipment totaling roughly $5 million and said items not on the list may not be covered. He recommended a “blanket option” that groups equipment into categories (computer, contractors equipment, miscellaneous, emergency services) so replacements or newly acquired items are covered without updating serial-number lists each time.
Property valuations and coinsurance risk: Fenrich said several county building valuations on the property schedule have appraisal dates between 2000 and 2019 and that replacement-cost estimates have risen. Using the courthouse as an example, he said the county’s insured limit of about $13.3 million may be below NDRF’s suggested $16 million replacement estimate; that shortfall can expose the county to coinsurance penalties when settling partial losses. He recommended adopting a blanket statement of values that provides a 125% margin clause to partially offset inflation-driven reconstruction costs.
Optional coverages and deductible structure: Fenrich described optional coverages the county currently lacks — single-deductible wind/hail options that combine multiple-building deductibles, larger sewer-backup limits (from $10,000 to $25,000) and inexpensive debris-removal endorsements. He also suggested the county evaluate auto deductibles as a savings strategy if its claims history supports higher self-insurance.
Agent-of-record and next steps: Fenrich said Brevera would not charge Mercer County an additional fee to act as agent of record; rather, the agent is compensated through standard commissions embedded in premiums. He offered to prepare forms and work with county staff ahead of February renewals for property, liability and inland marine lines if the commission chooses to appoint a new agent.
Commission response: Commissioners discussed internal inventory practices and asked if the county’s fair board or other entities are covered under the county policy. Fenrich said some local entities (water resource district) appear to be covered by the county policy, but recommended the commission confirm the fair board’s legal status and whether it should be included or handled separately. Commissioners asked staff to verify scheduled serial numbers and property appraisal dates.
Ending: Fenrich left contact cards and offered further help; commissioners asked staff to inventory equipment schedules annually and to consider the recommended property valuation updates and coverage options ahead of renewals.
