By BRADEN LAMMERS
Jeffersonville’s Board of Public Works was presented with two insurance renewal packages, approving one, at its meeting Wednesday.
The first policy presented was a renewal for the city’s property and workers compensation plans.
Jerry Rauck, agent of record with ISU Insurance and Investment Group, said the city, during the past year has added $42 million worth of additional property that needs to be insured compared to last year. At the beginning of 2012, he said the city insured $58 million in property and through upgrades to properties — like lift stations and sewer treatment plants — and property acquisitions the total jumped to about $100 million.
He said the city also added 34 vehicles that were not on the city’s policy when it was renewed at the start of 2012 and throughout the year Jeffersonville purchased 26 vehicles, increasing the net vehicles covered by 60.
Two premiums were offered, one through HCC and Bituminous totaled $1.139 million annually, and the other through Travelers that totaled $1.14 million annually.
“Their recommendation is that effective Jan. 1 the city changes its insurance coverage to Travelers,” Rauck said.
He said the advantages of going with the Travelers insurance policy was that property and workers compensation would be with one carrier and real-time claims analysis will help with the worker’s compensation.
Another recommendation was that the city change its deductible on property from $5,000 to $10,000.
“Regarding the increase in deductible, I think the city as a whole can afford the out-of-pocket [expense] of $10,000,” said Controller Monica Harmon. “I think that as a whole the city would be better off with the savings on an annual renewal.”
Public Works Coordinator Rick Lovan said he did not want to move forward with the vote on Wednesday, because Mayor Mike Moore was not in attendance.
The board agreed to table the approval until its next meeting.
The second insurance policy up for renewal was for the city’s health insurance coverage.
Cindy Orem, with Humana, presented the renewal which changed from a six-month policy to an annual policy with a fixed-cost savings of $46,574. The savings was based on doubling the cost of the six-month premium and comparing it to the anticipated annual cost to determine the difference.
Changes in the policy included switching from an $85,000 deductible to a $100,000.
She added that the change in deductible will not result in any change for the employees.
The renewal was unanimously approved.