Liability insurance coverage for the city of Owensville will cost an additional $12,130 for the coming year under an agreement approved June 6 by the Board of Aldermen.

Amy DiBlasi with Daniel & Henry Insurance Risk Management, told aldermen at their June 6 meeting the increase is 8.5 percent from the $143,403 paid this past year to the new policy which will cost $155,533.

DiBlasi to aldermen the city’s insurable value on property increased to $15.2 million. It had been valued at $14.8 million the previous year.

She said the city’ s claims for property loss and automobile damages were “nothing, really” but the increase in value of city-owned property “moved the needle on premiums.”

Of the 12 categories listed for insurance coverage, nine had increases, according to a comparison chart showing a summary of the premiums being charged the city. There were two decreases in premiums and one stayed the same.

An increase of $2,559 is listed on property coverage, up to $25,515 from $23,066. The city’s general liability coverage will increase by $1,376 to $9,850. The rate had been $8,474.

Commercial automobile coverage will increase by $4,399 to $39,607. The prior rate was $$35,208. Workers compensation coverage will cost an additional $1,920 as the new rate is $41,569. It had been $39,649.

Cyber liability coverage will cost the city an additional $1,862 as the previous rate of $2,738 under one carrier goes to $4,600  with a different carrier.

DiBlasi complimented City Administrator Randy Blaske and city staff for their due diligence in their efforts to address the potential dangers of cyber crimes against the city through insurance coverage. But, their current carrier was no longer offering this type of coverage for municipalities due to ransomware exposures.

The new coverage for cyber crime liability has an increase in the deductible from $2,500 to $5,000 and carries a $1 million limit.

City coverage also includes an “umbrella” policy for $3,922, an increase of $466 from last year’s rate of $3,456.

City Clerk Peggy Farrell, responding to a board member’s question about the need for umbrella coverage, said “you gotta have it.”

She explained the umbrella policy includes everything from windows broken by thrown rocks from city-operated mowers,  slips and falls, to sexual assault claims. It provided an additional $1 million in coverage on top of the $3 million “cap” on the claims limit. The new policy has a cap of $3,065,000.

Completion of the new police station was cited as a reason for a $1,582 decrease in the police professional liability category. Also cited were upgrades to “policy and procedure paperwork” completed by the city’s administrator and staff. DiBlasi also noted the coverage decreased slightly since the police department had two fewer patrol staff at the renewal deadline.

“The law enforcement policy is very good,” said DiBlasi.

She noted the city has not had any workers compensation claims in the past year but the increase is based on numbers from claims made in the previous three years.

Blaske, noting he was on his “safety soapbox,” said these prior claims came from avoidable incidents such as unsafe lifting of heavy objects. “Both of these were avoidable,” he said. “We have had some exposure and we’ve had some lawsuits.”