Long Beach Transit’s liability insurance premiums will jump from $50,000 to $500,000 next fiscal year, said Larry Jackson, president of the transit company. Jackson blamed the soaring cost on the collapse of the liability insurance market for public agencies, adding that the company’s record as an insurance risk is “extremely positive.”
Jackson announced the increase Monday during a meeting of the transit district’s board of directors at which the board unanimously adopted the 1985-86 budget.
The budget is $22,030,000, an increase of 6.2% over last year. Jackson said the higher insurance costs represent 2.2% of that increase.
Also this week, the board of directors allocated $75,000 for a one-time bonus for the bus company’s 60 non-union employees. Bonus checks will amount to about 4% of anemployee’s annual salary. Jackson said the year-end bonus is appropriate because employees have put in “a very tough year.”
The decision comes just one month after the board decided to raise bus fares on July 1, but Jackson said the two decisions are unrelated.