Cleburne County commissioners consider short-term binding with insurer after steep premium increases

Cleburne County commissioners held an emergency meeting to decide how to keep the county's property, vehicle and equipment insurance in force after the county's broker reported a large premium increase and limited market responses.

Lisa, identified in the meeting as the county's insurance contact, said: "As you all know, I talked to you about this at the last meeting, that we had a significant increase somewhere on the order of a 100 and 25% increase in property insurance." She told commissioners the county's longtime underwriter is no longer writing municipal property policies and that the broker had received very few offers.

The discussion centered on whether to bind an interim policy with Parnell Insurance and use a payment-plan structure that would give county staff time to seek alternative lower-cost offers. The broker initially quoted roughly $155,000, Lisa said, and later reduced that amount somewhat while continuing to search for better rates.

Commissioners were presented with three practical options, as explained in the meeting record: pay the entire year's premium up front; pay a 25% deposit to bind the auto coverage (a broker-imposed minimum that would provide roughly three months of auto coverage) and put buildings and equipment on month-to-month billing; or pay other combinations of partial amounts with refunds available if the county cancels after finding a better rate. The meeting record shows the county administrator recommended paying the 25% deposit on autos and using month-to-month arrangements for buildings and equipment to buy time to solicit further quotes.

Commissioners and staff discussed how large deductibles would affect the county's out-of-pocket costs for vehicle claims. One participant noted that even a deer strike often produces repair bills above typical deductible amounts. The meeting record includes a suggestion to consider a lower vehicle deductible but indicates that the decision on exact deductible levels rested with the commission.

The county clerk or staff read a draft resolution that referenced a proposal from Parnell Insurance for 2025 and directed use of a payment plan while staff sought other insurers. The draft specified a $10,000 continuing deductible on property coverage for buildings and left spaces to fill in automobile and equipment deductibles and exact payment amounts. Under the payment configuration discussed in the meeting (25% deposit on autos; one month on buildings; one month on equipment or full-year payment for equipment to obtain a discount), staff said the total required to bind coverage under that arrangement would be $38,649.

A commissioner moved to accept the resolution as drafted and to fill in deductibles and payment details as discussed; a second was recorded, and the meeting continued with additional discussion about claim history and regional trends in municipal insurance pricing. Meeting audio and transcript provided no recorded final roll-call vote in the excerpt provided.

Staff indicated they will continue to seek lower rates and that any month-to-month payments for buildings and equipment would be refundable if the county cancels after finding a better policy. The broker advised that the auto coverage requires a minimum three-month commitment (paid as a 25% deposit) while buildings and equipment can be placed month-to-month with prorated refunds if cancelled.

Because the transcript excerpt does not record a formal final vote, the outcome of the motion to accept Parnell Insurance on the interim terms is not specified in the provided record. The commission's apparent next step is to bind short-term coverage to avoid a lapse while staff pursues additional quotes and confirms final deductible levels and payment amounts.