City rewarded for risk management
June 12, 2008 · Updated 12:33 PM
The Association of Washington Cities Risk Management Service presented the Port Orchard City Council with a check on Monday to offset an increase in insurance assessment payments and a decrease in claims filed by the associations member cities, including Port Orchard.
As a member of AWCs Risk Manage-ment Service Agency, the city pays an annual assessment for a broad-based insurance package and risk-management services. The money is pooled with assessments from other member cities to manage loss prevention and reduce the impact of risk loss to any one city.
AWCs Risk Management Service Agency closed its 1996 and 1997 policy years with a surplus because the assessments that cities paid exceeded their paid claim expenses.
Because of the loss-control efforts of cities like Port Orchard, the city received a member equity check.
The city of Port Orchard is saving money because they are practicing good loss-control and risk-management, said Paul Chasco, AWC Assistant Director for Insurance Services. The City Council has passed effective policies, the city staff is doing a good job of implementing those policies and they are working well with our staff to keep cost down. This is a great example of good government in action.
Founded in 1989, the Association of Washington Cities (AWC) Risk Management Service Agency is an insurance pool that provides stable long-term liability and property coverage for cities in Washington State.
The program is a management tool for cities that want to control insurance costs and minimize liability exposures and still provide coverage broad enough for normal municipal operations.