Fullerton : City May Insure Itself or Join Others in Collective
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Fullerton appears to be the next Orange County city forced to become self-insured.
The city’s insurance company plans to drop its coverage when the policy expires March 25, City Manager Bill Winter said. Like other companies, Harbor Insurance Co. is going out of the municipality-coverage business.
On Tuesday, City Council members will discuss Winter’s recommendation to “go bare” and cover city claims itself.
Meanwhile, other options will continue to be studied, such as joining a pool of other cities in an authority. Last month, for example, Villa Park joined the Southern California Joint Powers Insurance Authority, comprising about 50 Southern California cities. Villa Park had been without insurance since Dec. 11, when its insurer, the Chicago Insurance Co., stopped covering municipalities. Last December, the City of Orange was the first Orange County city to carry no insurance and rely on its own reserves rather than pay a sharply increased premium.
Fullerton’s premium this past year was about $250,000, with a $200,000 deductible, Winter said.
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