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Zeeland renews $149,318 liability and property coverage while probing coverage overlap with BPW and MPIA
Summary
Council approved renewal of the city’s property and liability insurance for FY2027 with the Michigan Municipal League Liability and Property Pool for $149,318, and staff said they will work with MPIA corporate counsel to resolve potential overlaps between City, Zeeland BPW and MPIA coverages.
City Council voted unanimously on June 1 to renew Zeeland’s property and liability insurance with the Michigan Municipal League Liability and Property Pool for fiscal year 2027 at a premium of $149,318.
Assistant City Manager and Finance Director Kevin Plockmeyer told the Council the renewal represents roughly a 10% increase over the prior year but that staff judged the coverage and pricing reasonable in current market conditions. "Based on current market conditions and the coverage provided, staff believe the renewal is reasonable and recommend approval," Plockmeyer said.
Plockmeyer and City staff also flagged structural questions about how insurance responsibilities are aligned between the City of Zeeland, the Zeeland Board of Public Works (BPW) and the Michigan Public Insurance Authority (MPIA). The BPW participates in MPIA and MPIA has provided key coverages for BPW exposures since 2004. But because Zeeland BPW is legally a department of the City rather than a separate legal entity, staff said overlapping coverage could create uncertainty about which policy should respond first in a claim.
To address the issue, MPIA’s board recommended a review of MPIA governing documents by corporate counsel; that review remains pending. MPIA renewed its coverage as currently structured for now, and Plockmeyer recommended the City do the same for FY2027 while staff and MPIA pursue a clearer alignment. "The recommended approach allows the City to maintain continuity of coverage for the upcoming fiscal year while giving staff and MPIA time to address the structural questions carefully," Plockmeyer said.
Council approved the premium renewal (motion by Councilmember Timmer, supported by Councilmember Langeland) by unanimous vote. City staff said they will continue discussions with MPIA corporate counsel, the City’s insurance representatives and other stakeholders over the next year to clarify differences and avoid duplication or coverage gaps.
Next steps: staff will pursue MPIA counsel’s review results and propose structural adjustments if possible before the next renewal cycle; no coverage changes were enacted for FY2027.
