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Monroeville budget hearing: sharp rise in workers’ comp and liability premiums forces larger 2026 request
Summary
Monroeville’s insurance broker told council the borough faces substantially higher workers’ compensation and liability premiums after several large claims, prompting staff to propose adding roughly $270,000 to workers’ comp and to prepare for larger excess‑liability costs in 2026.
Monroeville’s insurance broker warned council on Thursday that a series of large claims has pushed the borough’s workers’ compensation costs sharply higher and will increase liability and excess‑liability premiums in 2026. Mark Forrester of Nova Insurance Services told the council that the municipality’s experience modification — a factor the market uses to price workers’ compensation — rose to 1.463, and the carrier is charging materially higher premiums as a result.
Forrester said staff are budgeting an increase to the workers’ compensation line, asking the borough to plan for roughly $900,000 for 2026, about $270,000 more than the amount shown in earlier drafts. “This is the best outcome,” he told council while explaining underwriting limits; he cautioned that without a willing market insurer the borough could be pushed to the state fund known as SWIF, where premiums would be significantly higher.
The broker and staff attributed the jump in the experience modification to several high‑cost claims over recent years, including a line‑of‑duty fatality that will remain in the calculation for multiple years. Forrester and staff outlined steps the borough can take to limit future costs, including safety committee work, targeted training (emergency vehicle driver training was highlighted) and other loss‑control measures that the insurer considers during renewal negotiations.
Finance staff and council members discussed the budgetary implications: the manager and finance director said they had already adjusted the advertised totals to account for the new quotes and urged council to minimize mid‑advertisement edits that could confuse public notice. Council members asked whether the borough should increase the legal services or other contingency lines as insurance and litigation expenses grow.
Next steps: staff will finalize the 2026 figures, include the updated workers’ compensation and liability estimates in the budget to be acted on next week, and return with any refined premium numbers once underwriters provide final invoices.
