Abbeville’s insurance package jumps $150,000 this year

It’s no secret insuring property in Louisiana costs more at this moment in time.
With the renewal of its property insurance, the city of Abbeville discovered firsthand that the cost is increasing.
During a special meeting last Monday, the Abbeville City Council approved an insurance package for property coverage, auto physical coverage, boiler and machinery coverage, airport liability, and inland marine/equipment coverage. The renewal is effective as of March 1.
This year’s premium is $280,735, an increase of $150,083 compared to 2022.
“Property insurance is in a crisis in Louisiana,” said Councilman Brady Broussard Jr., who chairs the city’s insurance committee. “We are not exempt from that crisis.
“We have seen a rise in premium.”
However, it could have easily been more.
“When we got the quotes in last Thursday,” Mayor Roslyn White said during the meeting, “it was another $50,000 more than this.”
Members of the insurance committee and the mayor worked throughout the weekend, and even until a couple of hours before the special meeting, reviewing every option for quotes.
“We worked all weekend to whittle it down,” White said, “and come up with the best option for the taxpayers, with the most coverage that secures our city for the least amount of output on our budget.”
Ben Rivera, the city’s local agent from Thomson Smith & Leach Insurance Group, Inc, said that negotiations were extensive.
“We negotiated with the carriers on a couple of different levels,” Rivera said. “We did agree on some things that reduced that premium cost to the city. But, you have to work within a budget, and sometimes that doesn’t leave us the room that we would want to cover the exposure like we would like.
“We had to look very hard at all the coverages, all the packages and all the line items to make recommendations and moves where we could reduce the premium as effectively as possible.”
The package renewed is a change from last year in that the city will now have $2.5 million in property coverage per occurrence.
“For years, the city carried a $5 million policy which was considered in this renewal,” Broussard explained after the meeting, “but with the significant cost, over $400,000, and we have not had a city claim reach that limit. So the Committee, Mayor and Council felt this was a good degree of insurance, especially per occurrence, and to remain fiscally responsible.”
For many years, the city had more companies from which it could receive quotes. Unfortunately, that is no longer the case.
“Few companies will even provide a quote to our agents,” Broussard said. “Fewer companies to quote and the tremendous property losses from hurricanes Delta, Laura and Ida have created the crisis in property insurance all persons find themselves in now.”
Monday’s meeting also included a renewal for general liability with Risk Management, Inc.
“The general liability carrier for the city is Risk Management Inc., who can and does provide the city with first dollar coverage and a large team to work with the city for efficient response and resolution to claim activity,” Broussard said.
That renewal did not come with an increase.
“This year’s renewal saw a reduction in premium of $216,562.54, which saves $6243.02 over last year,” Broussard said. “We attribute that to fewer claims and a history of an employee safety program in the city that was paused for the pandemic and is planning to resume.”