Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the County Finance topic
No spam. Unsubscribe anytime.
Board approves higher liability deductible to reduce premiums, saving about $500,000 annually
Summary
Supervisors voted to increase the county’s per‑incident liability deductible from $10,000 to $100,000 after a staff briefing on rising insurance costs and large jury awards. Risk management said the change could save roughly $500,000 per year if county reserves are available to cover higher self‑insured retentions.
After a staff briefing on rising liability insurance costs and recent “nuclear verdicts” affecting public‑entity pools, the Board voted to raise the county’s per‑incident liability deductible from $10,000 to $100,000 to reduce premium expense. Risk manager Sarah Duarte explained that shifting to a higher deductible reduces pooled premium charges and that the county’s reserves would be held available to meet the higher deductible exposure.
Supporters said the change should produce about $500,000 in annual premium savings; supervisors stressed the need to maintain adequate reserves for claims, noting the volatile environment created by very large jury awards in other jurisdictions. Board action authorizes staff to proceed with the deductible change and to monitor claims experience; the vote was unanimous.
Why it matters: The move reduces near‑term premium expense but increases the county’s exposure to larger up‑front claim payments. Supervisors instructed risk management to continue close monitoring and to bring back any needed adjustments.
