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Broken Bow council votes to join LARM, citing roughly $100,000 in near-term savings
Summary
The council approved Resolution 2024-13 to join the League of Risk Management (LARM) and the related interlocal agreement, selecting the '90-day notice only' commitment; officials emphasized lower catastrophic deductibles and potential savings while noting power-plant engines remain excluded from coverage.
The Broken Bow City Council voted Oct. 8 to join the League of Risk Management (LARM), approving Resolution 2024-13 and an interlocal agreement that binds the city to LARM coverage under the option requiring 90 days’ written notice to terminate.
Mayor Rod Sonnichsen introduced the resolution and highlighted the expected cost savings, saying the selected option "will already save the city approximately $100,000." Administrator Dave Schmidt recommended the 90-day notice option as a cautious first step while the city becomes familiar with LARM’s programs.
Clint Simmons, an independent agent with Simmons Insurance Services representing LARM, outlined differences between the city’s current carrier, EMC, and LARM. He said LARM’s standard catastrophic deductible is $5,000 per event compared with $25,000 per event under EMC in current market conditions, and noted that reinsurers commonly exclude power-plant engines from coverage. Simmons also described member services LARM provides, including a property-evaluation specialist, a small safety grant and a vest-reimbursement program.
Council moved and approved the resolution and the interlocal agreement by roll call vote; Councilmembers Russ Smith, Luke Wassom and Paul Holland voted aye and no councilmember voted no.
Officials said LARM coverage could begin as early as Oct. 13 to align with cancellation of the city’s existing EMC policy. The council approved the interlocal agreement separately on the same evening.
