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Monroe chair rebukes departments for last-minute transit insurance renewal; Travelers defended by representative
Summary
Chairman McFarland criticized staff for presenting a transit insurance renewal at the 'ninth hour' days before the policy expiration; insurance representative Peyton Pharr said Travelers stepped in when First Transit's program ended and the insurer's premium rose about 3%.
Chairman Rodney McFarland I sharply criticized staff Sept. 23 for bringing a renewal of insurance for the Monroe Transit System late in the process, saying the policy was presented "two weeks before it expires" and that departments must provide renewal materials earlier for proper review.
The council approved Resolution No. 9004 authorizing the City to enter into an agreement with Travelers Indemnity Company of Connecticut for transit insurance. McFarland said he did not want the Transit system to be without insurance but said he expected more timely submission of renewal information.
Insurance representative Peyton Pharr explained that the municipal transit insurance market in Louisiana is limited. He said First Transit's program ended years ago and Travelers stepped in; despite past losses, he said the premium increase this year was only 3% and that Travelers often provides coverage other carriers cannot match. Pharr said the renewal process typically begins 30'60 days in advance but market conditions sometimes prevent earlier pricing.
McFarland asked why the matter arrived late; Pharr apologized for miscommunication and said staff will coordinate with the chair in advance of future renewals. The council approved the insurance authorization unanimously.
