Fergus County opts to keep insurance handling in‑house, declines outside agent

Fergus County commissioners voted Feb. 26 to keep property and casualty insurance administration inside county staff and not hire an outside third‑party agent.

The action followed a report that the county had been paying about 10% of the semiannual insurance cost in agent compensation — figures noted in the meeting as roughly $36,000–$38,000 last year and an estimated $40,000 for the coming year — on a policy base described in the meeting as about $400,000 in coverage. Chair moved to remove the RFQ for a local insurance agent from the table and then moved that the county not hire a third‑party agent; the motion was seconded and approved by voice vote.

Commissioners discussed that the county’s long‑time agent had sold the business and the county had solicited RFPs; Blue Stem Insurance submitted a proposal but the board had tabled the matter in November. During a recent MACO Property Casualty Trust (PCT) membership meeting, the PCT membership voted to amend bylaws to allow a county to designate an internal staff member rather than require a separate local agent to interface with MACO claims and administration. Chair described that change as the key factor allowing the county to proceed with in‑house handling.

Supporters framed the decision as a taxpayer cost‑savings measure, noting the in‑house option would avoid a roughly 10% agent compensation fee and keep claims interface within county processes. The board recorded the motion, second and an approving voice vote; no opposing votes were recorded in the transcript.

The county will continue to work with MACO for claims administration and has left open the ability to revisit the arrangement if circumstances change.