Town of Merom advances insurance coverage amid budget constraints

Merom town officials met to discuss insurance options exclusively, reviewing quotes from Springer Insurance and deciding on policies from a new provider and another carrier.

Officials reviewed a new general liability quote for $1,845 annually. The policy would cover the park, cemetery, community building, playing fields, sports courts, racquetball, shuffleboard, town hall building, campgrounds, playgrounds at the bluff, hiking trails and the cemetery at 8522 West Phillips Road.

Clerk-Treasurer Brittany Williams stated the new quote covers everything, compared to a prior policy limited to the cemetery and community building for $5,150.

She noted, "In order to take this policy out, we will be canceling the prior general liability quote."

The board voted to accept the new liability policy for $1,845 a year. They also voted to cancel the prior policy, acknowledging a minimum earned premium of 25 percent, or about $1,250, would still be due.

One participant, an insurance agent attending as a friend, reviewed the new policy limits of $1 million per occurrence and $2 million aggregate. He suggested officials ask whether the per-occurrence limit could be increased to $2 million for minimal additional cost. Products-completed operations and personal advertising injury were excluded, as was medical payments coverage.

The board addressed property insurance from another carrier. Earlier, the full replacement cost quote for all locations was $33,400.65. Officials had previously bound coverage on the community building at replacement cost, later shifting to actual cash value, reducing that portion to approximately $5,000.

Board members discussed adding coverage at actual cash value for additional structures. They approved coverage for the large pavilion shelter house at a premium of $5,725 plus $676 for business personal property, the maintenance garage at $999, and the cook shack at $893 plus $112 for business personal property. Each carries a $2,500 deductible. Restroom facilities and smaller shelter houses were not included.

Vice President Barbara Mahan, absent due to illness, sent a message to be read into the record: "I would like to have it noted, though, that I think top priority for property coverage should be for the community building, the pavilion and probably the town building. Because of the tools and equipment that are stored in that building. I also think actual cash value should be what the insurance should be priced at."

The board agreed with prioritizing the pavilion, cook shack and maintenance garage at actual cash value in addition to the existing community building coverage.

Total insurance costs were estimated at roughly $30,000, including the new liability policy, the 25 percent prior policy cancellation fee, public official liability previously approved at $13,489 and the added property coverages.

The annual budget allocated $4,000 for insurance. Officials voted to fund the premiums from the remaining hail claim proceeds held in the Trust Indiana account, which stood at approximately $60,000 after prior expenditures and a planned set-aside of $12,000. After accounting for the prior policy payment and other obligations, roughly $8,000 remained in the insurance fund before these new costs.

Discussion highlighted that a previous insurer canceled coverage within 48 hours of an inspection, citing maintenance and liability risks. Officials noted improvements already made and plans to address remaining issues, including ADA compliance at the campgrounds with assistance from District 2 Commissioner Brandt.

A part-time laborer was recently hired to assist with upkeep. Participants stressed the need for routine maintenance to avoid future cancellations. One official remarked that insurance companies had reviewed live streams as part of their decisions.

Council President Doug Bates received authorization to visit Springer Insurance the following day to sign necessary documents and bind the new liability coverage. Property additions to the existing carrier policy will follow. Officials planned a meeting early the next week to confirm coverage amounts and reopen parks and facilities.

Springer Insurance was asked to explore whether Merom Improvement Association could be added as an additional insured on the town's policy or obtain its own business liability coverage listing the community building as its address. Rental agreements and certificates of insurance will be required going forward for other users.

The board emphasized maintaining coverage to protect the town while working within severe budget limitations.