Scott County Commissioners approve new insurance carrier amid tight market conditions
0
2
0
Scott County Commissioners have approved a transition to a new insurance provider, Enbridge, following Liberty Mutual's non-renewal of the county's policy. The decision comes amidst a challenging insurance landscape driven by high claims, jail liabilities, and rising auto-related incidents.
The county will now operate under a self-insured retention (SIR) program, which includes significantly higher deductibles. Property claims will have a $150,000 deductible, capped at $500,000 annually. The package includes $1 million in property coverage, supplemented by $47 million in excess property coverage from Travelers.
A Third-Party Administrator (TPA) will handle claims and work directly with the Auditor's Office. Departments retain flexibility in selecting legal counsel for claims, and training resources will be provided to improve risk management practices.
Commissioners emphasized the need for departments, particularly the sheriff's office, to reduce accidents and claims. Auto-related incidents have been a major driver of insurance challenges, with two recent years resulting in losses exceeding $300,000 and $500,000. Ideas such as fleet reductions, safety incentives, and stricter accountability measures were discussed to curb costs and improve loss ratios.
The insurance industry's tightening conditions, combined with high-risk exposures like jails, have limited the county's options. Commissioners explored alternative providers but faced denials. Enbridge's proposal, though not ideal, offers stability in the short term while allowing for continued exploration of more cost-effective solutions.
This shift aligns Scott County with other Indiana counties navigating similar challenges, as insurance providers increasingly withdraw from high-risk sectors.
With the SIR program in place, future goals include finding more affordable insurance options and strengthening protocols to ensure long-term financial stability.
The motion to accept Enbridge as the county's new insurance provider passed unanimously.
