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Cresco City hears insurance renewal with small net increase and options to raise deductibles
Summary
Insurance broker Kelly O'Donnell told the Cresco City Council on Oct. 6 that the city's renewal showed a modest net increase after a dividend; staff was asked to return cost comparisons for higher property deductibles (including $10,000, $20,000 and higher buyback options).
Kelly O'Donnell of the O'Donnell agency presented Cresco City's 2025–26 insurance renewal Tuesday and described a package that, after a dividend, produces only a modest overall increase for the city.
O'Donnell said the city's itemized premiums for the prior period were $297,082 (after the council previously requested an umbrella increase to $3 million) and that the current renewal lines sum to roughly the low-$300,000s; after a 2025 dividend of $24,562 the broker calculated an estimated net increase of about $5,427, or roughly 1.8 percent. "Once we back that out, your actual increase for this year is 5,427 for an increase of 1.8%," O'Donnell said.
The presentation unpacked several line items the council asked to review: property, general liability, work-comp, inland marine (equipment such as the fire department drone and a camera), business auto, commercial crime and law-enforcement coverage. O'Donnell explained the city's general-liability per-occurrence limit is $2 million with an added $3 million umbrella for a combined $5 million of potential per-occurrence coverage, and noted the city's aggregate GL limit is $4 million.
On property-deductible options, O'Donnell told councilors that raising the deductible on buildings from $5,000 to $10,000 would reduce the premium by about $9,000 and that the agency can run illustrations for higher levels (including $20,000 and percentage deductibles with buy-back endorsements used by larger entities). "If we went from a $5,000 deductible for property to $10,000, you would save another $9,000," O'Donnell said, urging the council to consider the tradeoff and asking whether staff wanted a follow-up comparison.
On worker-compensation, the broker highlighted a favorable change to the city's experience modification factor, from 1.42 at the prior renewal to about 1.16 now, a shift that reduces the city's premium multiplier. O'Donnell also warned that law-enforcement liability costs have upward pressure statewide and nationally, and that the city's 'linebacker' (claims-made) coverage requires careful reporting and attention to retroactive dates.
Nikki (city administration) and other staff asked O'Donnell to provide modeled quotes showing the premium savings at several deductible levels; O'Donnell agreed to return with figures for $10,000, $20,000 and other options, and to prepare material for the council's next meeting if they wish to act on changing deductible levels.
The presentation closed with O'Donnell noting inland-marine items are now split between the City of Cresco (first named insured) and the Cresco Fire Department (second named insured) and confirming auto-deductible guidance (a $2,000 deductible on city vehicles remains recommended because higher deductibles do not yield material savings).
The council did not take a final vote on changing deductibles at the meeting; staff will receive the detailed cost comparisons and bring recommended options back for council consideration.
