Lamar council approves $582,411 insurance renewal, expands cyber coverage

The Lamar City Council on Nov. 4 authorized renewal of the city's property and casualty insurance with the Iowa Communities Assurance Pool at a total annual cost of $582,411, following a presentation from the pool's representative.

City staff and Matt Susumil of Perspective Insurance told the council the overall premium is up 7.03% from last year, largely because cyber liability was removed from the bundled general liability line and offered as a separate item with an increased limit. Susumil said the city's total insured value rose to about $174 million and that, excluding cyber, the overall premium increase would be roughly 2% compared with last year.

Council members asked about specific line items: general liability remained at a $5 million limit with a 2.1% increase; auto liability rose modestly because of vehicle usage counts; public-officials/wrongful-act coverage and law-enforcement liability saw roughly 5% increases. Susumil noted inland marine and scheduled equipment values increased and that the cyber line had previously been included in general liability but is now being carved out with an option to raise the limit from $250,000 to $1,000,000.

Council discussion focused on the cyber coverage level and cost. Staff said the higher cyber limit would add roughly $20,000 to $25,000 in annual premium but argued the exposure justified the increase because water and wastewater control systems are connected to networks and could be vulnerable. One councilmember said, "We're delusional if we think that we're not susceptible to any type of cyber activity. So, I'm 100% good with it." The council then moved and seconded the renewal.

By voice vote the council carried the motion to authorize the renewal with ICAP at the quoted terms. The motion passed with all members present voting in favor.

The council did not direct staff to change coverages beyond the quoted options; staff and the insurer will complete the renewal paperwork.