News - Local News

POSTED: Monday, Sep. 28, 2009

Whatcom County to pay more for new ferry insurance next year

An insurance company has dropped much of Whatcom County's coverage for its Whatcom Chief ferry to Lummi Island, and new insurance is going to cost more.

The company, MOAC, which provided primary coverage of the vessel, dropped the county because claims have been higher than the premiums the county paid, according to a letter from the county insurance broker.

Over the past five years, the county paid $134,342 in premiums for the primary coverage while claims in that time totaled $280,220, the letter stated. New insurance to cover the county for another year is going to cost nearly $29,000 more than last year, an increase of 84 percent.

"Our objective is going to be to try to bring insurance rates down in the future, but that will require us reducing some of the claims for damages that have been occurring thus far," said Dewey Desler, director of administrative services for the county.

The County Council on Tuesday, Sept. 29, will consider approving buying the new insurance for the next year.

The claims problem is because of injury claims by employees, Desler said.

A September 2009 study, conducted by Seattle-based Aasgard Summit Management Services, stated the county's system is well run and is a "desirable risk" for an insurance company, but it had several recommendations for improvement:

Set job standards, including physical requirements, and institute a yearly physical qualifications process for employees to ensure they're still able to meet the standards. "There appears to be an issue with employees remaining in positions in which they may no longer be able to perform the essential functions of those positions," the report stated.

Adopt a specially designed injury report form, which would "freeze the facts as the injured party is aware of them so that they cannot be changed later," the report stated.

Use a specially designed statement that witnesses to accidents can fill out.

After an injury report is done, the ferry system manager should do an investigation, sticking to the facts of the situation.

After an injury, fill out specific forms both for the U.S. Coast Guard and the Occupational Safety and Health Administration.

The broker recommended other companies to provide insurance, but the annual costs will be higher. Also, the primary policy's deductible is now $25,000, up from $5,000.

The county administration is recommending the County Council approve the purchases suggested by the broker. As in past years, it's not recommending spending the $2,750 for a year of terrorism coverage, made available after Sept. 11, 2001.

ATTEND THE MEETING

What: The County Council will consider approving buying new insurance for the next year for the Whatcom Chief ferry to Lummi Island. The coverage will cost 84 percent more than last year's policy.

When: 11 a.m. Tuesday, Sept. 29 (committee discussion), 7 p.m. (full council consideration).

Where: County Council Chambers, 311 Grand Ave. in Bellingham.