Buffalo Grove exploring partnership with other suburbs to try and save on liability insurance
By forming a coalition, a group of 10 northwest suburban municipalities potentially could pool together funds and limit costs related to general liability insurance. Officials with many of those municipalities said they would want to know more about the potential cost savings before committing to the idea.
For example, if one of the municipalities faced a damaging loss of property, would the other local governments have to help cover the incoming rise in premiums? Or would the group buy together, but operate and pay individually?
Those are just some of the questions that officials are trying to figure out as they start to explore forming a coalition addressing general liability insurance, said
"'What's the best way to manage risk?' is the question on the table," Owen said. "Each community has to determine, 'What's the best way to manage that risk?'"
The 10 northwest suburban municipalities thinking about the idea include
To better study the idea and weigh the cost issue, the group is seeking proposals from consultants, who could provide answers on how much individual risks the group could share and other issues, officials said. Interested consultants have until
General liability insurance tends to be a major one for local governments since it usually covers incidents related to vehicles, buildings and other kinds of property owned by municipalities, as well as claims involving police and other officials, according to village officials.
Regarding the possible coalition, the 10 municipalities all need to be comfortable with the amount of savings that could come with the new partnership, officials, including Owen,
"We are committed to it, as long as it is something that would be a benefit for us in the long term," Logan said. "We're very early in the process. I don't know that anybody is committed to it completely at this stage."
But Bragg said the potential coalition could help the 10 municipalities one day save enough money to be self-insured.
"Ultimately, you want to be self-insured," he said. "There's always that opportunity out there."
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