Washington Evening Journal
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Concerned about deductibles, Iowa County stays with ICAP
By Winona Whitaker, Hometown Current
Jul. 2, 2024 11:04 am
MARENGO — Frightened by deductibles, the Iowa County Board of Supervisors decided last week to remain with its current insurance provider.
ICAP, a group self-insurance for public entities, raised its contribution requirement by 30%, prompting Iowa County to look for another insurance carrier.
Dan Lillis of Lillis insurance Agency, and Joe Benz, who specializes in municipal insurance, discussed options with Supervisors in June.
Travelers Insurance was the only market company that showed any interest in providing a quote to cover Emergency Management, Iowa County and E-911. The premium would be about $175,000 less, but deductibles were required for each separate weather event rather than yearly.
Supervisor Abby Maas researched the county’s claims over the last five years and said that if the county had had the coverage Travelers is offering it would have spent $156,000 more over five years than it did, about $31,000 a year.
So the county would save about $140,000 going with Travelers, not $175,00, she said.
And that’s only if the county doesn’t have more weather damage than it had in the past five years.
Travelers covers counties in other states, but is not currently providing insurance for any Iowa counties, Maas said. “We would be the first county in Iowa for Travelers, but not its first county.”
Supervisor Chairman Kevin Heitshusen said he’s worried about the deductibles, which would be $100,000 per event.
Supervisor Chris Montross agreed. “I want to save money,” he said, but the way the weather is lately, he’s worried about having to pay deductibles for multiple events.
“I could go either way,” said Maas. But the county doesn’t have the option to switch insurance carriers any time it wants. If the county has a lawsuit pending with ICAP and switches insurance carriers, ICAP will not pay out.
The county has no pending litigation at this time.
“I lean toward Travelers,” said Maas. The way counties are going, ICAP is not competitive any more, she said.
“I’d like to wait another year,” said Supervisor Alan Schumacher, and see how Travelers goes. “I like the blanket right now that ICAP provides.”
Supervisors voted unanimously to stay with ICAP.
“I don’t think there’s a wrong decision,” said Maas. Staying with ICAP is the safe decision.