Council approves 2026 property, liability and workers’ compensation renewals and adopts deductible strategy

City staff introduced a renewal recommendation for the city’s property, liability and workers’ compensation coverage and turned the presentation over to Lance Spence of USI Insurance.

Spence summarized a generally favorable renewal market this year and recommended retaining EMC for property and casualty coverages because EMC offered a flat $75,000 property deductible, which Spence said is uncommon in the current marketplace. He proposed implementing a workers’ compensation deductible, arguing the city could reduce the number of small claims reported in the experience-modification calculation (NCCI), and showed analysis indicating the proposed deductible would have removed about 20 claims from the experience mod over the last three years. He also noted EMC’s mutual-company dividends can reduce the net premium difference versus other carriers.

Council members asked whether unused deductible amounts return value to the city; Spence explained there is a premium credit for having a deductible and the long-term benefit flows from controlling the experience modification, not a direct refund of unused funds. After discussion, a council member moved to approve the 2026 policies with EMC, VFIS and coalition in the amount of $558,499 (motion SEG 601; second SEG 605). The motion carried unanimously.

The council’s action authorized staff to finalize the insurance placements and implement the recommended deductible approach. No policy language changes beyond the deductible and carrier selections were acted on at the meeting.