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Council extends League Association of Risk Management participation to secure insurance discount
Summary
Council approved a resolution to extend written notice and enter a multiyear commitment with the League Association of Risk Management to secure contribution credits and a discount on insurance premiums.
The Scottsbluff City Council voted to authorize a resolution extending the date for written notice of termination and to participate in a multi-year agreement with the League Association of Risk Management (LARM) that will preserve contribution credits.
Staff told the council that entering a three-year agreement preserves a 5% discount on coverage. “As long as we extend it by 3 years, or enter into a 3 year agreement, we get a 5% discount,” a staff member said, noting the cost increase was not as large as anticipated but remains substantial. Staff noted the total annual impact discussed during the budget workshop was about $125,000.
Council discussion touched on whether the city periodically shops insurance rates and whether coverage could be split (for example, liability through LARM and workers’ compensation elsewhere). Staff said neighboring jurisdictions are evaluating options and that LARM’s package is typically bundled: “Generally it is.” The council recorded an affirmative roll call and authorized the mayor to sign the resolution.
Background: LARM is a mutual-risk pool many Nebraska municipalities use; multi-year commitments can preserve contribution credits and reduce short-term premium volatility. The council requested continued monitoring of other jurisdictions’ decisions and noted staff will report back if market options change.
