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County staff warn insurance and stop‑loss costs are pushing up the budget; carrier changes increased deductibles
Summary
County risk staff told commissioners that moving carriers increased deductibles and stop‑loss exposure, and that property and liability insurance quotes are expected by the end of May; staff cited a 257% increase in premiums since 2018 on an illustrative slide.
County staff and the risk manager told commissioners that insurance costs are a growing driver in next year’s draft operating budget. Lisa Lynch and the county risk manager described rising employee health‑insurance stop‑loss and property/auto liability premiums as factors that contributed to the proposed budget gap.
The risk manager explained the county’s deductible structure and a recent carrier change. He said the county formerly had a $0 auto liability deductible under a prior carrier (Travelers) and when coverage moved to Safety National the liability deductible became $350,000 per claim; staff said final quotes on property and liability are not expected until the end of May. Lynch noted a slide showing a 257% increase in insurance premiums since 2018.
Staff described the county self‑insurance design for employee health care (multiple plan options and an on‑site clinic) and the role of stop‑loss coverage for very large claims: the county retains the initial portion of claims (examples discussed included $25,000 for some damage handling and larger stop‑loss attachment points), and the stop‑loss carrier pays excess amounts. Commissioners asked about historical claim volumes and the risk manager said some claim activity had been concentrated in certain years but that recent years show fewer such incidents.
No procurement decisions were made in the session; staff said they will continue negotiating with carriers and expect formal quotes near the end of May.
