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Committee hears insurance scenarios showing modest net savings at higher deductibles
Summary
Staff presented insurance-deductible scenarios showing a $25,000 deductible would reduce premium by $80,000 but raise expected deductible costs by $58,000, producing a projected net savings of about $21,000; members asked for a full schedule of coverages and totals.
City staff presented a review of insurance and deductible options, and committee members asked for a full inventory of coverages and a total cost roll-up before any decisions.
Staff described a scenario in which moving to a $25,000 deductible would reduce the city's premium by $80,000 while pushing up estimated deductible costs by $58,000, for a projected net savings of $21,000. "So he is projecting a savings of $21,000," a staff member stated when summarizing the consultant's illustration.
Committee members asked how the deductible estimates were calculated and whether the data reflected Isle of Palms' own claims experience; staff said the figures were based on the city's experience over the previous five years. Members also asked for a clearer presentation that shows net premium after deductible credit rather than separate columns for current premium and deductible credit.
The committee discussed differences in coverage across asset classes (for example, building coverage versus vehicle coverage) and noted police and fire equipment have minimum deductible requirements. Members requested a schedule showing each insured asset/class, current deductible, coverage limit and the carrier, and asked staff to include flood, workers' compensation and other policies when presenting totals to Ways & Means.
No change was adopted at the meeting; staff will return with a consolidated schedule showing premiums, limits, deductibles and the identity of carriers.
