Harrison County hears update on multi-jurisdiction property-insurance pool; administrators to finalize terms before May 1

Frank Bordeaux, representing Gathering Insurance, updated the Harrison County Board of Supervisors about changes to a multi-jurisdiction property-insurance pool and said those changes would increase the pool's coverage and reduce premium costs.

Bordeaux told the board that "long story short, all of your limits are increasing" and that carriers had agreed to revised policy terms and conditions. He said equipment-breakdown coverage that had previously been at or near zero would now show $100 million in limits and that the pool's total property limit has been raised to $375,000,000. He said the program currently shows roughly a $100,000 premium savings for Harrison County.

Why it matters: the county holds significant property (jails, courthouses and other facilities) and higher pooled limits and broader coverage could reduce the county's out-of-pocket exposure for large losses and reduce recurring premium costs.

Bordeaux said the new program removes many exclusionary provisions that had been common in the "hard market" of recent years and that the new paperwork is written so that "if it's not specifically excluded in this program, it's covered." He also said the pool's limit on a previously-capped sub-limit had been increased from an earlier $350 million estimate to $375 million and that all carriers had filled the new layer.

Board members identified two outstanding issues: the final actuarial study and the pool's policy-and-procedures/bylaw language. Bordeaux said the county should receive actuarial results within days; he and county legal counsel are drafting the policies. Board members discussed whether to hold a special session before May 1 or to authorize county staff and counsel to finalize documents and allocations so coverage is in place by the effective date.

The board did not place a finalized contract on the record at this meeting. Officials instructed county administration and legal counsel to continue negotiating and to present final findings at the next meeting; staff said they expect to have actuarial information and draft policy language shortly.

Ending: Bordeaux said the county could see only modest changes to the current numbers as the actuarial review completes; staff indicated they will bring final documentation and recommendations to the board at the next scheduled meeting or call a special meeting if necessary.