SARATOGA SPRINGS, N.Y. (NEWS10) – While Saratoga Springs deals with the potential loss of their insurance provider, Mayor Ron Kim cleared up confusion about which coverage would actually be dropped. “Social media is now saying we’re not covered,” he said. “That is simply not true.”
“We have insurance for both liability and our health care insurance for our employees. We have that and we will have a new company for a liability policy within the next week or so,” Kim went on to say.
Travelers insurance company sent a letter of nonrenewal to the city in September, saying in part: “The City of Saratoga Springs’ approach to risk and safety management creates an unacceptable increase in the hazards contemplated by the city. Therefore, we are nonrenewing your policy effective 01/01/2024.”
“We are going through the process with our broker to talk to alternative insurance companies,” Kim said. He said that switching companies could increase the cost by more than 60%.
Public Safety Commissioner Jim Montagnino said that the city needs insurance for just about anything you can think of. But, he said, “The biggest part of insurance, particularly for a municipality, is not indemnification from losses. It’s defense against claims.”
Montagnio said that the increase will cost taxpayers about $800,000 annually. “In the end, it’s paid for by the revenue sources the city has. We are in the budget process right now and it’s fairly clear that our budget is going to be extremely tight already,” he said.
That budget is expected to be introduced on November 30.