Personnel Committee approves insurance renewal, raises property deductible to $10,000

Allegany County’s Personnel Committee voted to approve an insurance renewal package that raises the county’s property deductible from $5,000 to $10,000, the committee chair announced following a presentation by the county’s broker.

A Gallagher representative told the committee the renewal packet contained two quotes: one that maintained the expiring $5,000 deductible and a second that raised the deductible to $10,000. "The other is a proposed increase in those deductibles to $10,000 which would be our agency's recommendation for the renewal program," the Gallagher representative said, adding that the higher deductible is intended to cover catastrophic property losses.

The broker said moving to the higher deductible offers a premium reduction of about $15,000 this year. When committee member Mister Barnes asked whether the increase was common across the state, the Gallagher representative said the insurance market has been trending toward higher property deductibles and that the recommendation depends on whether the county can absorb larger, less frequent losses.

Committee members also questioned how commissions and fees were handled. The Gallagher representative said most broker commissions are included in carrier premiums and that an administrative agency fee of $500 is shown separately in the packet for billing services. He added that his firm’s effective commission on the account is lower than many competitors, "9.1 to be exact," compared with typical market rates above 15 percent.

The broker described the county’s program as a self-insured retention structure, which limits the number of carriers that bid because few offer that program type. He said his agency insures multiple municipalities, referenced Steuben County and Allegany County among clients, and stated that the New York municipal program now insures over 1,000 of the roughly 1,400 insurable municipalities in the state.

After discussion, Mister Barnes moved to accept the renewal option that includes the $10,000 property deductible; the motion was seconded and approved by voice vote.

Votes at a glance: - Approve agenda: Moved by Mister Havey; seconded by Mister Ricky; outcome: approved (voice vote reported as "Aye"). - Accept insurance renewal with $10,000 property deductible: Moved by Mister Barnes; second recorded; outcome: approved (voice vote reported as "Aye"). - Enter executive session to discuss proposed, pending or current litigation: Moved by the chair; seconded by AVL; outcome: approved (voice vote reported as "Aye").

After the vote on the insurance renewal, the committee moved into executive session to discuss litigation matters, as announced by the chair.