Hampshire staff recommends switching liability and workers—omp coverage despite higher bid; board authorizes staff to proceed

Village staff recommended moving to a new insurance option for workers' compensation and general liability after reviewing bids from Gallagher (the incumbent broker) and a trust-based program (ICRMT-like provider). Staff said the recommended bidder offers coverage that better matches the village’s expanded liabilities and replacement-cost appraisal process even though the proposal was more expensive than the incumbent.

Trustees pressed staff on procurement practices, whether Gallagher should be invited to requote with expanded coverage, and the limited pool of insurers that will underwrite municipal accounts. Staff said the request-for-proposals packet provided current coverage levels and asked bidders to quote those limits; one bidder declined to quote those limits because it considered them insufficient, and the recommended provider proposed higher limits appropriate for municipal exposures.

Several trustees argued for courtesy outreach to the incumbent broker given a long-standing relationship; others said the municipal insurance market is small and market behavior (locking underwriters or broker 'lockouts') can explain limited bids. Staff noted the decision is for a one-year contract and that renewing procurement next year would allow updating coverage specifications.

After discussion, the board voted on a motion authorizing staff to secure workers' compensation and village liability coverage as recommended; a roll-call vote recorded the individual responses and the chair announced the motion passed.