Fountain Valley : City May Join Insurance Pool to Avoid High Cost
Faced with tripling insurance premiums, Fountain Valley may join an insurance cooperative financed by a group of Los Angeles County cities, according to Assistant City Manager Don Contraman.
The city’s insurance, now obtained through a private carrier, will come up for renewal March 1, and the premium is expected to increase by almost $200,000 for the coming year, he said.
Fountain Valley is considering joining the Southern California Joint Powers Insurance Agency, a cooperative of about 50 cities. Buying into the group would cost the city about $150,000.
The cooperative and the private insurance company are expected to notify the city next week about whether they will provide insurance and at what cost.
If the city is unable to obtain insurance by March 1, it will be self-insured until it buys coverage, Contraman said.
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