Franklin County hears risk-pool briefing as liability costs and assessments rise

Chuck Boyd, executive director of the Washington Counties risk pool, told Franklin County commissioners on March 25 that steep increases in claims and large jury verdicts have pushed up costs for pooled liability coverage and tightened the pool's reserves.

At a presentation to the Board of Commissioners, Boyd said the pool now reports roughly $112 million in assets and $103 million in liabilities, leaving a net position that fell from about $26 million in 2021 to $8.9 million at the end of 2025. ‘‘We’re very short of our target funding model,’’ Boyd said, noting actuarial targets between $129 million and $256 million. He said the board injected $15.4 million in the most recent rate action to help close the gap.

Why it matters: Boyd said Washington’s legal environment — notably the lack of tort-cap limits and recent ‘‘nuclear’’ jury awards — has amplified volatility and driven the pool to raise self-insured retentions (SIRs). That combination makes coverage more expensive for member counties and complicates budgeting.

How Franklin County’s bill was calculated: Boyd explained the liability assessment math for Franklin County is based on reported worker hours, deductible choice and a modification factor tied to claims history. Franklin reported 539,589 worker hours in its most recent L&I reporting; the county’s chosen $25,000 deductible contributes a small discount in the actuarial model. Boyd summarized the result as about $1.9 million in liability assessment for the group, and he reviewed separate assessments for property ($252,000 catastrophe component example), cyber (based on operating budget) and crime/terrorism coverages.

Claims, settlement and litigation strategy: Commissioners asked whether the pool routinely fights cases to deter high-value claims. Boyd and county counsel described recent trial experience — including employment and civil-rights cases taken to verdict — but noted the pool resolves the vast majority of claims through settlement because a trial’s uncertainty (and the possibility of very large jury awards) can be more costly than settlement. ‘‘We’re not afraid to try a case,’’ Boyd said, ‘‘but I’m afraid to try the wrong case.’’

Pool services and loss-control incentives: Boyd highlighted member services — training, scholarships, small risk‑reduction grants (up to $5,000 per county per year), cyber reimbursements and a pre-defense review program — designed to reduce future claims. He also described a Lexipol-style training reimbursement for law enforcement and a technology funding program for inmate health monitoring as examples of risk-mitigation investments.

Next steps and context: Boyd’s presentation was informational; no formal action was taken on the pool membership during the meeting. Commissioners pressed for further detail to compare alternatives (purchasing commercial insurance, self‑insuring or remaining in the pool) and asked staff to provide more county-specific costing scenarios before a planned decision on the county’s withdrawal scheduled for December 31, 2026.

Ending: The briefing closed with technical questions about claims and trial strategy; Boyd left commissioners with his contact information and offered to share the slide deck and marketing booklet he provided to underwriters.