The City of Indianola has liability insurance for 2024, but it did not come cheap.
Indianola Insurance representatives Doug Russell and Ed Robinson appeared before the board during a special called meeting this past Wednesday afternoon to offer the city its insurance options.
Under a traditional policy, the city’s liability deductible would rise from $10,000 in 2023 to $150,000 per claim in 2024.
“That’s really not insurance,” Robinson told the board. “We’re not that big. That’s the main reason why we went elsewhere to get other quotes.”
The news is not totally unexpected, as Russell had told the board during a November meeting that the city had multiple liability claims, including law enforcement claims, that threatened the city’s coverage.
Of the five claims Russell noted back in November, two of them are from this year.
Robinson said they found a zero deductible quote with the Mississippi Municipality Service Company, which apparently already writes the city’s workers compensation insurance.
Under the plan, Russell said, MMSC proposed to take on the city’s automobile liability, general liability, law enforcement liability and public official liability insurance.
The only catch is that company required a check for $259,334.60 by certified mail to arrive by today.
In order for the city to insure everything under one company with the $150,000 deductible, there would be a total premium of $437,000.
With the alternate plan that includes insurance through Arthur Gallagher & Co., Travelers and the Mississippi Municipality Service Co., the total premium would be $398,257, $259,334.60 of which would be due to Mississippi Municipality Service Co. before the end of the year.
Although the city paid a little over $200,000 in premiums for liability insurance this past year, according to Russell, contracted CPA Dr. Phyllis Rhodes told the board on Wednesday that only $170,000 was budgeted for liability premiums in the fiscal year 2024 budget.
A motion was made by Ward 1 Alderman Gary Fratesi, who was present by phone, to go with the lower bundled premium, authorizing a check for $259,334.60 to be sent this week to Mississippi Municipal Service Company.
Ward 3 Alderman Ruben Woods and Ward 4 Alderman Marvin Elder voted yes. Ward 2 Alderman Darrell Simpson and Ward 5 Alderman Sam Brock Jr. were not present.
Mayor Ken Featherstone was present by phone.
Also tabled during Wednesday’s meeting were two prospective motions regarding changes to the bank accounts associated with the Indianola Municipal Airport.
Those will apparently be added to the agenda of the January 4, 2024 meeting.
