Prince William County's comprehensive risk management program covers array of risks
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Prince William County, Va., insures more than $432 million in property risks, says Lori J. Gray, the county government's risk management division chief.
For 2013 coverage, the county paid $197,000 to Affiliated FM, a unit of Johnston, R.I.-based FM Global, for covering those risks with a $25,000 deductible, Ms. Gray said. The premium for the 2013 property coverage is 2.5% lower than the paid cost of the prior year.
The deductible is low, but the county has kept its losses and costs down, she said.
The county reported five claims with losses totaling $15,975 for 2012. Claims falling below the deductible are paid from the general fund.
Other insurance the county purchases includes coverage for aviation liability, crime and fiduciary, with the fiduciary policy written by Travelers Cos. Inc. to handle employee pension plans. The county pays Travelers $6,773 for the cover, with a $1 million limit and no deductible.
National Union Fire Insurance Co. of Pittsburgh, Pa., a unit of American International Group Inc., provides crime insurance with a $1 million limit and a $25,000 deductible. The county pays $24,000 for the coverage, Ms. Gray said.
Meanwhile, Chubb Corp. unit Federal Insurance Co. underwrites an aviation policy for “nonowned” aircraft, for which the county pays $6,864 for $5 million in limits with no deductible.
Ms. Gray also negotiates for excess insurance for two self-insurance pools.
A workers compensation pool retains the first $1 million per claim with excess cover bought from Ace Ltd. for $266,000 for 2013. Ace provides $10 million in limits per claim with a $20 million aggregate.
A liability pool retains $750,000 per claim with the pool paying Stamford, Conn.-based Genesis Insurance Co. $451,000 for 2013 excess coverage with statutory limits.
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