The Fort Scott City Commission decided Tuesday evening to change insurance methods after spending the past few years with Berkshire Hathaway for property and liability insurance, instead going with the cheaper option of joining KCAMP.
When the time for renewal came along, the commission decided to look at other options to see what was available to them, though City Manager Dave Martin emphasized that the decision was not because of any failure on Berkshire’s part.
“We’re not leaving because of Berkshire’s misperformance,” Martin said. “Berkshire has done a great job.”
While the city’s premiums were rising to $264,283 a year with Berkshire, the city will pay $194,158 annually with the Kansas County Association Multiline Pool (KCAMP). Because KCAMP runs according to the calendar year, the city would pay half of that sum this summer and is guaranteed the same rate when they pay for 2018.
Because KCAMP is a pool, it is considered an association run by a board, but still legislated by the Kansas Insurance Department. This pool has been in existence since 1991 and now includes about 90 members, the majority of them being counties, including Bourbon County.
City contractor James Charlesworth described the differences between entering an associational pool versus using insurance, saying a pool charges contributions instead of premiums and are more accessible than insurance agencies.
The city is already a part of two pools for workman’s compensation and health benefits. Commissioner Jim Adams said he is comfortable with the change because of how positive their participation in pools have been up until now.
The last time the city sought an insurance company was in 2014, and the city decided they would look at other options every three years.
One thought on “City Joins KCAMP”
I know very little about insurance, but I would ask the following questions before I became involved in pools like this:
(1) If you leave, are still responsible for some of the losses incurred by the other participants?
(2) If the losses of the program exceed estimates, what is the maximum additional premium you could pay?
(3) If other municipalities have financial problems and don’t/can’t pay, what is the maximum you could pay to cover their shortfall?
Actually, there are a lot more questions, and I hope someone asked them before signing up for this program.