Commission opts to use county insurance instead of separate $3.5 million trustee surety bond

Hamblen County commissioners voted June 1 to abandon a separate $3.5 million surety bond for the county trustee and instead rely on the county's existing insurance coverage, a choice county staff said will reduce an estimated $15,000 annual premium from the trustees' budget.

Finance staff explained that the county's insurance policy provides $400,000 of coverage through the insurer, while the separate surety bond that has been held on the trustee provides $3.5 million of coverage at an additional cost. ‘‘No — it’s only $400,000 through our insurance company,’’ the finance director said when commissioners pressed for the difference in coverage and cost.

Commissioners debated the risk trade‑off. Supporters said the county insures elected officials and that sticking with the insurance would save taxpayer dollars; others cautioned a lower insured limit could leave the county exposed if an extraordinary loss occurred. One commissioner noted that past auditors and the county attorney had different recommendations on whether a separate trustee bond was required.

After discussion a motion to rely on the county insurance policy rather than renewing the separate $3.5 million surety bond was made and seconded; the commission held a roll‑call vote and the motion carried. Staff then adjusted the trustees' proposed budget downward to reflect the savings from dropping the separate bond.

The decision was procedural: commissioners voted on the funding approach and instructed staff to reflect the change in the trustees' budget that will be finalized in subsequent budget paperwork.