Granite County approves Mako insurance renewals as appraisals push property values higher

Granite County commissioners voted to approve a package of insurance renewals and a recommended carrier change for cyber coverage after a presentation from Mako representatives and brokers.

Hope Barker of the Montana Association of Counties and Roie Homeman of Marsh McClennon Agency told the board that recent appraisal cycles and rising construction costs have increased building-and-contents total insured values, producing a headline 15.59% renewal rate in the comparison materials. Barker said the pool structure helps limit exposure compared with private-market alternatives and cited last year’s liability claims as a stress test for reinsurance placement.

The presentations included several specific items: the board’s vote this year reduced the property rate by 4% for counties that completed appraisals; the liability base rate rose 7.5%; vehicle and equipment rates were unchanged; and fidelity-and-crime coverage renewed on a three-year contract that increased to $23.86 per employee. Barker also said that the insurer’s actuary authorized adding three defense endorsements—zoning, ethics and floodplain defense—at a $10,000 deductible with no additional county cost.

Commission discussion focused on whether to keep replacement-value appraisals or adopt stated values to smooth future rate volatility. Barker described options: phase-in higher replacement values over several years or accept a stated value that would reduce premiums but limit what the county would receive on a total loss. She warned that opting for stated values reduces replacement payouts in the event of a complete loss.

The board also considered workers’ compensation changes presented by the same team. County payroll used for premium estimates rose from about $2.45 million last year to $2.658 million in the renewal worksheet, and the county’s NCCI experience modification increased from 0.97 to roughly 1.26. Presenters said the increase in the mod accounts for a substantial portion of the workers’ compensation premium rise; they also reported negotiating a roughly 20% reduction in scheduled rating with Montana State Fund that partially offset the impact.

Rodie (staff) and safety presenters emphasized operational steps to moderate future experience-mod increases: early return-to-work programs, prompt supervisor completion of accident and investigation packets, and tighter claims follow-up. A presenter explained that medical-only costs are discounted in the mod calculation, while wage-loss payments are fully counted, making return-to-work an important cost-control measure.

On cyber coverage, presenters showed a bound renewal with a renewal premium listed at $11,446 and recommended switching carriers from Coalition to CFC Corporation after remarketing. Presenters said the CFC proposal preserves certain coverage features and would reduce the county’s cyber premium by an estimated $67,000 compared with the current pricing; commissioners made and seconded the motion to switch and approved it.

Motions to approve the property and casualty renewal and the workers’ compensation renewal were made, seconded and carried during the meeting. The transcript records the motions and that each was seconded and approved; roll-call tallies were not recorded in the transcript.

The presenters repeatedly urged commissioners to confirm local appraisal details (including any historic-value appraisals that can drive substantially higher replacement assessments) and to consult county counsel before changing coverage for property registered as historic.

The board adjourned the insurance portion and moved into a quarterly safety meeting where minutes were approved and staff outlined changes to emergency-action plans and orientation checklists to ensure department heads distribute and retain signed acknowledgments for new employees.

The meeting closed with follow-up tasks: county staff will verify appraisal documentation for courthouse and jail historic-value status, circulate updated return-to-work and accident reporting forms, and confirm the cyber carrier switch paperwork with the insurer.