By BECKY KISER
Hays Post

The city of Hays is anticipating a five percent increase in its 2016/2017 commercial insurance premium. The current policy for liability and property insurance with BRIT Insurance expires July 1, 2016.

“We’re not entirely unhappy about it,” Hays Finance Director Kim Rupp told city commissioners during their Thursday night work session. “We’ve experienced about a five percent decrease over the past couple of years so this increase isn’t terrible.”

Christina Pyle with the city’s insurance broker, Arthur J. Gallagher & Co., explained how market factors resulted in just one quote–by BRIT.  Six other companies declined to bid primarily “due to the aggressive pricing BRIT is providing,” she said.

“The city has just had a couple of property claims and a couple of auto claims that have knocked the loss ratio up a little bit higher…and also with the market in this part of Kansas–with the wind and hail–(BRIT) did have to get a little bit of rate (increase) this year,” Pyle concluded.”

That increase is 4.9 percent or $9,197 more than the prior period.  Total cost is $196,220.

Pyle called it a “flat renewal” and also offered some better news.

“We were able to save pretty significant money on the cyber liability side.  We moved the coverage from AIG to a company called BCS Insurance.  It’s actually a program that Gallagher developed specifically for cyber liability.  It saved about $5,000 and is very good coverage,” Pyle said.

Vice-Mayor Shaun Musil was a little concerned there was just one bid.  “I think it’s unfortunate we didn’t have any bidders, but I guess maybe it’s good that we’re low enough that they can’t beat that.”  He encouraged Pyle to “keep an eye on it.  Having several bidders is always a good thing.”

Commissioners agreed to move forward with the recommendation to renew the BRIT insurance policy.  It will be considered at the June 23 regular commission meeting.

Commissioner Henry Schwaller was absent from Thursday’s work session.