Hillsboro joins liability pool
Staff writer
Hillsboro moved away from a typical liability insurance provider Tuesday as the city officially joined Kansas County Association Multiline Pool.
The organization pools money from 114 different municipalities to put towards accidents, property damage, and other claims.
Two insurance proposals were heard at Monday’s city council meeting: one from the city’s current provider, EMC, and one from KCAMP.
Joe Allen and Eric Rector gave a presentation on behalf of EMC.
Allen spoke about a “hard” insurance market that has led to high premiums. Inflation, he said, “put a bind” on insurance companies.
“Three years ago, to replace an average home roof it cost $12,000,” Allen said. “Now it’s $18,000.”
Allen noted that pools could force them to pay extra even if they leave the group.
“It’s kind of like me putting on a white shirt, knowing I’m going to a council meeting tonight, and going out to an Italian restaurant for lunch,” Allen said. “It could be a good idea, but there’s also risk.”
Maura Chambers spoke on behalf of KCAMP. She noted the many disasters the pool covers, from “convective storms” to wildfires. She also pointed out a large surplus which KCAMP possesses, as well as the pool’s financial strength.
The deciding factor for Hillsboro was the cost of yearly insurance.
Remaining with EMC would cost the city $208,876 while the city will pay $156,719 with KCAMP.
“The savings are pretty significant,” city administrator Matt Stiles said.
With the extra money, the city may reduce property taxes.
“We’ll wait until we get the numbers,” Stile said.
Mayor Lou Thurston was excited about the switch.
“I see this as one of the ways in which we can be more efficient,” he said.
In other business, a new position for a clubhouse manager at the golf course was approved. Stiles also announced that the three Herington Hospitals at 108-114 Main St. will be auctioned online April 14 to 16.
Owner Emprise Bank owns the buildings and hopes to earn back some of its $3 million investment.
Bidding starts at $1.
“That makes me a little nervous,” Stiles said.