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City sees insurance premiums increase

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Due to an increase in the number of claims filed, the cost of worker's compensation and personal/casualty insurance for the city of Homewood will increase about $300,000.

Claims filed under the city’s worker’s compensation policy and personal/casualty insurance policy, which covers damage to city property, have increased in the past few years, City Council President Alex Wyatt told the finance committee on Jan. 23. Subsequently, Travelers Insurance has informed the city their insurance costs will rise about $300,000, he said. Part of the increase in worker’s compensation insurance, which is based on payroll costs, is also due to the 5% cost-of-living increase given to all city employees in the fiscal 2023 budget.

It was unclear whether the increase was for the current fiscal year or would take effect in fiscal 2024. This story will be updated with that information as soon as it becomes available.

The city is working to increase safety and reduce the number of claims, Wyatt said. Travelers has advised creating a procedure to review accidents, which will be handled by a committee, and the city is also updating their employee handbook and implementing new safety orientation, he said.

The committee recommended renewing the insurance policies.

In other business, the committee recommended moving $14,000 out of the budget for sidewalk construction along Mecca Avenue to Twin Construction. A retaining wall is needed on a property in the area, and the city is giving the money to Twin Construction, which is working with the property owner to build a nicer retaining wall than what the city can build, City Engineer Cale Smith said. The homeowner will be responsible for any overages, Smith said.

In other news, the committee:

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