Library faces 52 percent raise in insurance costs [The Pantagraph, Bloomington, Ill.]

Dec. 01--BLOOMINGTON -- The Bloomington Public Library's insurance costs likely will increase by nearly 52 percent, in part due to an ongoing workers' compensation case filed two years ago.

The library's insurance agency, Snyder and Snyder, presented coverage quotes to a library board of trustees committee Wednesday. The lowest set of quotes from Chubb Group of Insurance Companies, for property and general liability insurance, and from Zenith Insurance Co., for workers' compensation insurance, totaled about $49,100, a nearly $16,700 increase from the $32,400 the library last paid its current provider, The Hartford.

About $9,400 of the increased cost is due to rising property insurance rates seen across the country, said Brenda Niederbrach, the Illinois marketing manager for Arlington/Roe & Co., who's serving as an adviser to Snyder and Snyder and who presented the quotes on Wednesday.

The rest of the increase is due to the library's workers' compensation history, she said.

The Hartford, which currently handles all of the library's insurance, told the library in September that it would not renew any of the library's insurance policies because it was losing too much money on claims. In the last eight years, the library filed eight workers' compensation claims, causing the insurance company to pay out $278,069.

One claim -- a lower-back injury due to lifting boxes -- remains open and accounts for about $228,000 of the insurance company's losses so far. The Hartford, which must continue paying on the claim even after it no longer insures the library, expects to pay an additional $83,900 before closing the claim, according to The Hartford documents provided by the library.

Library Director Georgia Bouda said the additional costs would come out of various other budget areas yet to be identified.

The board of trustees is expected to accept the low insurance quote of about $49,000 when it meets Dec. 13.

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