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Council approves insurance renewal pending verification after 10% premium rise
Summary
At its Jan. 7 meeting, New Whiteland officials reviewed an insurance renewal that raised property values and pushed the overall premium roughly 10% higher; the council approved the renewal conditionally pending corrected employee/population figures and a cyber-coverage application.
New Whiteland officials on Jan. 7 reviewed the town's annual insurance renewal and approved it subject to a few outstanding clarifications. Dean Rayfield, the insurance presenter, said insured building values on the policy rose about 5 percent — roughly $1.7 million in total — and that changes on the equipment schedule and miscellaneous property increased other limits. That combination helped push the town's premium from about $124,607 to roughly $139,000, a 10.4 percent increase.
"The values went up 5 percent," Rayfield said, explaining the carrier's inflation adjustments and schedule changes. He noted the cyber-coverage application was still pending, and he asked the council to confirm the town's population and the full-time-equivalent calculation for paid-standby employees in the fire department that had been reported to the underwriter.
Council member Angela pressed on the employee counts and said she believed the population was "definitely over 5,000," which affects rating tiers. Rayfield described how the insurer calculates full-time equivalents (divide annual pay by hourly rate, then back into hours) and said he would correct the underwriter's numbers if the council supplied adjusted figures.
The council voted to approve the renewal on the condition that the pending cyber quote is received and that corrected population and employee-hour figures are provided to the underwriter. The motion was made and seconded and carried by unanimous voice vote.
Why it matters: A higher premium will affect the town's insurance line in the general fund, and follow-up corrections to payroll/population figures and the cyber application could alter the final premium. The council asked staff to circulate corrected numbers to Rayfield and to share the final underwriting terms with the full membership by email once received.
Next steps: Staff will send the corrected employee/population information to the underwriter and provide the pending cyber-coverage response to council members. The conditional approval allows staff to finish renewals on schedule if the outstanding items do not increase the presented premium further.
