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Parish committee approves insurance renewals amid debate over abuse/molestation coverage and added costs
Summary
An executive committee approved recommended renewals for employee health and several property policies, but brokers warned the parish may face a roughly $76,000 premium increase and higher self-insured retention for sexual abuse/molestation liability coverage; the council authorized administration to proceed while seeking better terms.
During the Feb. 11 executive committee meeting, Iberia Parish officials reviewed renewals for group health and property/liability insurance covering the parish for the 04/01/2026–03/31/2027 policy year.
Committee members were told by brokers that the parish's group health renewal with Blue Cross Blue Shield will increase by about 3 percent — a number described as favorable compared with earlier budget estimates — and that property insurance renewals resulted in an approximately 11 percent decrease on the property side, which the broker said translated to an estimated $45,000 savings from last year.
The most consequential discussion focused on liability coverages, specifically the coverage for abuse and molestation. A broker told the committee that the parish's incumbent carrier would no longer offer that coverage and that the only willing carrier quoted an additional premium of about $76,000 and a raised self-insured retention (SIR) from $200,000 to $250,000; the new carrier would also limit prior-acts coverage to roughly a 10-year window rather than full prior-acts history. The broker summarized the options and advised caution, saying the parish faces a market trend rather than a local idiosyncrasy.
Committee members debated exposure versus cost. One member said, "I think we should do the $70,000 personally. Because it's all it take is 1 incident." Others urged approving the recommended package but authorizing the administration to keep seeking better terms; the broker recommended approval with the ability for the administration to improve the deal if a stand-alone product or better prior-acts terms could be found.
The committee moved forward with the administration's recommendations and directed staff to continue marketing the liability coverages and, if a superior option appears, to execute it under administrative authority rather than delay coverage and risk being uninsured in the interim.
The administration advised the council that this coverage decision primarily affects programs that involve minors (for example, summer day camps) and recommended guarding against being uninsured for that exposure. The committee's action advances contract awards for insurance across multiple lines with the expectation that staff will continue to pursue improved market options and report back if terms change.
