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Arapahoe County commissioners approve parameters to bind 2025 insurance program, decline terrorism coverage
Summary
At a county meeting, commissioners authorized parameters for the county's 2025 insurance renewals, accepted broker IMA's recommendation to decline terrorism liability coverage (saving roughly $20,000'$30,000), approved a two-year workers'compensation option with Midwest, and authorized staff to bind final property and other lines with the lowest-priced bindable carriers.
Arapahoe County commissioners on Monday authorized staff to finalize the county's 2025 insurance renewals after receiving recommendations from broker IMA and county legal staff.
The board set parameters allowing County Attorney Ron Karl and broker staff to bind policies later this month if final quotes match the ranges presented. Sydney of IMA told the board the overall market is showing more carrier capacity on the property side and improved pricing, while liability—especially law-enforcement liability—remains tighter. "We're seeing new capacity in the marketplace," Sydney said, "which gives opportunity to dilute rate increases."
Why it matters: commissioners were told the presented program would lower the county's overall cost by about $100,000 annually compared with the current structure and that some changes could cut costs further depending on final carrier quotes. The board's choices affect multi-million-dollar liability layers, workers'compensation retentions and term length, cyber limits, and property premiums that appear in next year's budget.
Key outcomes
- Terrorism liability: IMA and risk-management counsel recommended declining terrorism liability coverage because it attaches only to federally declared terrorist events and is unlikely to be used. Sydney said the terrorism premium is about $20,000 annually and described it as liability coverage that would apply only if the president declared a qualifying terrorism event. Commissioners indicated support; the board recorded five thumbs-up in favor of declining terrorism coverage (Option 2).
- Liability program: The board reviewed a proposed restructuring that would shift layers so Metis would provide a primary $5 million layer above the county's $2 million retention and Munich Re would provide excess coverage. IMA reported the proposed arrangement is slightly cheaper than the county's current three-layer program and would move the county away from Berkeley.
- Workers' compensation: IMA recommended switching from the current carrier to Midwest, which offered lower retentions and the uncommon option to lock a two-year policy term at the same rate. The broker recommended taking the two-year term to secure the lower rate; commissioners supported that recommendation.
- Cyber insurance: The broker recommended remaining with Resilience at the current $5 million limit and $100,000 retention. The renewal premium presented was roughly flat with last year (about $89,633 vs $89,923 expiring). A risk-control services option would cost about $40,000 more; IMA and commissioners noted county IT capacity may make the add-on unnecessary.
- Property insurance: Renewals from Travelers (~$549,000) and Chubb (~$558,000) were both below the county's expiring premium (~$590,000). Zurich provided an additional option pending a site visit. The board authorized IMA to bind with whichever of the quoted carriers proves cheapest once final terms are received.
- Crime and fiduciary coverages: IMA recommended staying with current structures (crime with Travelers at $1 million limit and $10,000 retention; fiduciary with RLI at $3 million limit and $15,000 retention). Commissioners agreed.
Quotes and authority
County Attorney Ron Karl introduced a consent-agenda resolution authorizing him to bind the county's insurance within board-set parameters when final bindable quotes arrive. IMA emphasized the presented numbers are bindable quotes in most cases but said secondary-layer carriers were still "sharpening their pencils," meaning premiums could improve before binding.
Next steps
Staff and the broker will finalize program summaries and, under the parameters set by the board, bind policies later this month once remaining carrier terms (including Zurich's site-visit quote) are received. Commissioners requested staff notify them if a material change arises before binding.
"This year we're in a great spot," Sydney said in the meeting, noting the combination of new market capacity and the county's positive loss history. The board adjourned after brief closing remarks.
