Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Insurance topic
No spam. Unsubscribe anytime.
Parish reviews insurance renewal and considers equipment‑breakdown coverage
Summary
An insurance adviser reviewed Travelers and BFIS fire‑department renewals, explained a large property premium increase tied to facultative reinsurance, and recommended adding a mechanical/equipment‑breakdown policy to cover generators, chillers and other building systems; staff will produce cost/claims comparisons ahead of a voting meeting.
The Police Jury heard a detailed presentation from an insurance adviser about renewal of the parish’s Travelers casualty program and the fire‑department VFIS/BFIS program. The adviser said property premiums increased largely because an insurer (AIG) purchased facultative reinsurance following major hurricane claims; the parish insures roughly $12 million in property value under the current programs.
The adviser recommended the parish consider a mechanical/equipment‑breakdown policy — a relatively low premium that would cover costly failures such as pump engines and chiller systems. He gave two examples from prior storms: a pump engine replacement paid by the equipment policy (~$500,000) and a chiller replacement (~$150,000). Jurors asked whether such a policy would cover courthouse sensor failures and generators; the adviser said it could cover building equipment (air handlers, compressors, phone systems and generators) but would not cover wear‑and‑tear or corrosion.
Staff (S15, S16) agreed to run a cost comparison and claims history for the equipment items that routinely generate repair bills (courthouse sensors, HVAC and generator repairs) and to provide figures before the next voting meeting. The parish is also evaluating whether to move fire‑station property from the VFIS program onto the parish property program, which could save an estimated $150,000–$250,000 annually if underwriters approve and coverage limits remain appropriate.
Why it matters: equipment‑breakdown coverage can reduce out‑of‑pocket costs for recurring mechanical failures; decisions on property placement and deductibles may change annual premiums and affect municipal budgets.
The matter will return to the voting meeting after staff provides the requested cost comparisons and claims data.
