Brainerd City finance committee approves insurance renewal, lowers equipment deductible

The Brainerd City Finance Committee voted on June 1 to renew its coverage with the Minnesota League of Cities Insurance Trust and to reduce the portable-equipment deductible from $5,000 to $1,000.

The decision follows a presentation from insurance representatives, who recommended keeping vehicle and equipment deductibles aligned at $1,000 to limit combined out-of-pocket exposure in the event of a claim. "My suggestion would be to keep them both at $1,000," said Nate, one of the presenters, arguing that matching deductibles reduces total exposure compared with keeping equipment higher than vehicle deductibles.

Connie Hillman, Brainerd's finance director, introduced the item and turned the discussion over to the insurers. Presenters said the premium increase to lower the marine/portable equipment deductible to $1,000 would be about $1,556, as stated during the meeting. They also noted that overall premium rates were largely stable this year and that the net rate change was about 1.6 percent.

The insurers reviewed cyber-insurance trends for municipal clients, reporting that since the League's cyber program began in 2012 it has handled just over 160 claims. "Last year, it peaked at 30," Nate said, and presenters added that of those, roughly 25 were tied to compromised email or phishing attacks. They urged continued employee training and said training may become mandatory for some coverages going forward; presenter's advice was summarized as, "Stay with the training."

A committee member moved to proceed with the renewal and the deductible change; the motion was seconded and approved by voice vote. The committee chair reported the motion carried.