Campbell council updates insurance claims policy to streamline settlement authority and reporting

The Campbell City Council unanimously approved updates to Administrative Policy 2.8 on Nov. 18, changing how the city processes and reports insurance claims.

Finance Director (transcript: Wolf Fentes) outlined proposed changes intended to reflect rising claim costs, speed up the settlement process and align with Bay Area best practices. The revisions would clarify who has authority to settle routine claims, remove a subcommittee in favor of full-council oversight for certain approvals, and formalize the city attorney’s role in the settlement process.

A council member asked whether the police chief and the risk manager have authority to settle claims; staff confirmed that routine claims (for example, minor property or vehicle claims) are typically handled within specified limits by the police chief and designated risk manager with awareness of the city manager and city attorney. The policy also includes quarterly reporting requirements: the city manager and designated risk manager will meet to review the status of general liability claims and keep the council apprised of pending activity. Council members requested removing the word “significant” from the reporting language so the council receives broader information rather than only what staff considers significant.

Vice Mayor Fado and other council members expressed support for increasing settlement authority while ensuring the council receives periodic, informative reports about claim types and amounts. With those clarifications, the council moved and unanimously approved the policy updates as recommended by staff.