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Commission votes to rely on county insurance rather than renewing $15,000 trustee surety bond
Summary
After debating coverage limits and audit recommendations, the Hamblen County Commission voted to stop renewing a separate $15,000 surety bond for the trustee and to rely on the county's insurance program; staff will adjust the trustee's proposed budget accordingly.
The commission debated whether to renew a $15,000 surety bond for the county trustee that provided roughly $3.5 million of surety coverage. Finance staff said the county’s insurance policy would cover losses differently and would provide a lower indemnity level (reported in the meeting as $400,000) without an extra premium; auditors had recommended a bond in the past but the county attorney and state guidance indicated insurance coverage could be acceptable.
Commissioner Carden moved "that we go with the insurance policy and not accept the bond at this time" and Commissioner [role label used for the second] seconded. The motion passed on a roll‑call vote. After the vote staff recalculated the trustee budget lines to reflect the change in coverage and the new proposed trustees budget total was adjusted downward to account for the non‑renewal of the bond.
Why it matters: The decision reduces a recurring insurance/bond line by roughly $15,000 and shifts the county’s risk posture from a separate surety bond to claims against the county insurance program; commissioners noted audit and legal viewpoints and asked for future review after elections.
The commission instructed staff to re-run the trustee's budget with the new assumption and to bring final budget numbers back for approval.
