City No Longer Self-Insured, Returns to Best Practices for Risk Management & Claims Resolution
Mayor Rolison announced today that the City of Poughkeepsie, after a thorough review of risk management and the adequacy of insurance protection, has transitioned to coverages offered by the New York Municipal Insurance Reciprocal (NYMIR). The transition back to conventional coverage eliminates the City’s self-insurance retention of $1 Million, replacing it with a $500,000 deductible, increases the maximum total claim from $3 Million to $4 Million, and shifts risk away from the taxpayers of the City: “No plan for fiscal recovery makes sense if we do not simultaneously reduce risk and address operational weaknesses”, said Mayor Rolison. “When it comes to the financial condition of the City, we can all rest just a little easier knowing that we are also protecting the progress we’ve made thus far, while we continue to practice good governance and sound fiscal policies”, said the Mayor.
Under the terms of the transaction, NYMIR will now be responsible for legal defense and adjuster costs for claims made against the City. In addition NYMIR has agreed to commission property appraisals of all city-owned properties valued above $50,000, as the City’s Finance Department begins work later this year on a city-wide inventory of all the city’s assets. NYMIR will also work with the City on training and loss-prevention measures. “The successful completion of this transition addresses another of the chief recommendations of the City’s Strategic Fiscal Improvement Plan, which is the roadmap towards a full financial recovery for our City”, the Mayor said.
NYMIR insures more than 880 municipalities in New York State. These 880 members are also owners of NYMIR, which has a Governing Board of 13 elected and appointed leaders from around the State, and is endorsed by the three municipal organizations in the State, including the New York Conference of Mayors.
Risk management consulting services provided by: Rose & Kiernan, Inc. 60 Merritt Blvd., Fishkill, NY 12524