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Insurance agent: town package premium rises 13.1% to $54,344; cyber policy unchanged at $1,371
Summary
An insurance representative told the Robbinsville town board the town's package insurance premium would increase 13.1% to $54,344, citing a recent $346,000 flood claim that drove a five-year 171% loss ratio; a separate cyber policy remains in place at $1,371 with no claims reported.
An insurance agent told the Robbinsville town board that the town's package property and liability premium will rise 13.1% to $54,344 from last year's $48,038, a change the agent attributed to an unusually high five-year loss ratio driven largely by a $346,000 flood claim.
The agent (Insurance agent, S3) said most town buildings and inland‑marine equipment are insured on a replacement‑cost basis, which pays to rebuild or replace assets at current costs rather than paying depreciated cash value. "Most of the, all of the buildings in the town are covered for replacement cost basis," the agent said, adding that the change helps ensure the town would receive enough to reconstruct damaged assets.
Why it matters: replacement‑cost coverage can reduce shortfalls after a major loss but can also raise premiums. The agent told the board the 13.1% increase primarily reflects a five‑year loss ratio of 171% and described that the single large loss (the flood claim) was the principal driver rather than chronic losses.
Policy details and liability limits were discussed. The agent confirmed public‑officials liability is carried and said the policy provides $1,000,000 per occurrence for professional- and management‑liability exposures, with excess liability available. The agent also noted the carrier paper is National Union Fire Insurance Company of Pittsburgh and that the current package policy is with Gladfelter Public Entities.
The board also discussed a separate cyber insurance policy the town has purchased in recent years. "I believe the premium on that has not changed this year. It is $1,371," the agent said, noting there have been no cyber claims on the town's policy and that the coverage pays for post‑breach costs including notification and three years of credit monitoring.
Procedural next steps: the agent said an order form on the package policy will need a signature to bind coverage and that the agent would notify the town contact (Cody) immediately if the insurer issues a cancellation notice for nonpayment. The agent offered to return for a workers' compensation presentation to explore alternatives to the municipal pool.
Board reaction: members asked about employee medical coverage gaps that occurred previously and about how cancellations are handled. The presenters described standard notice procedures and recommended prompt notification if the town receives cancellation notices so the insurer can prepare a defense or restore coverage.
The agent left summary copies and loss reports with the board and said he would provide the longer policy documents upon request. The town did not announce a formal vote on switching carriers during the meeting; staff indicated the budget includes the premium and that, if the board directs staff to bind the coverage, the order form will be signed.
What to watch: whether the board elects to solicit alternative quotes for package or workers' compensation coverage before the next renewal deadline and whether the town accepts any quote that would require a 30‑day notice to leave a municipal pool.
