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Insurance pool representative outlines coverage options, retro coverage and costs to council
Summary
A South Dakota Public Assurance Insurance Pool representative briefed the council on occurrence vs. claims-made coverage, retroactive coverage options, deductible structure and example cost quotes (e.g., $156,689 for $4M occurrence; two-year retro option ~$54,108). Council asked follow-up questions about statutes of limitation and comparisons with,
A representative of the South Dakota Public Assurance Insurance Pool presented coverage options and pricing to the Beresford City Council, explaining the difference between occurrence-based and claims-made policies, and outlining retroactive coverage and extended-reporting alternatives.
The presenter said occurrence coverage responds to losses that happen while the policy is in force; claims-made coverage responds to claims reported while the policy is in force and may rely on a retroactive date to pick up earlier incidents. The pool offered retroactive coverage options (one- or two-year lookback) and three limit options for retro coverage (examples: $1 million, $3 million, $4 million). The presenter cited a sample quote of roughly $156,689 for the city to move to the pool with a $4 million per-occurrence limit; adding two years of retro coverage was quoted at about $54,108 (bringing the approximate total to $161,000).
Council members asked about statutes of limitation and types of claims that might require longer reporting windows (e.g., civil-rights claims or latent building defects). Staff noted many state personal-injury statutes are three years; federal claims can differ. Council also discussed deductibles (example: a $5,000 all-peril deductible on property covering multiple buildings in a single storm) and how the pool’s layered property program and reinsurance structure would operate.
No formal decision was recorded at the meeting; staff said they will obtain additional pricing (particularly for extended reporting periods from the city’s broker Jensen) and address the item in executive session and future budget discussions.
