Board members accepted a $3 million policy quoted by the Royal Surplus Lines Insurance Co. last week, and that action raised their coverage limit to $10 million — a ceiling that looked to be unreachable earlier this year.
When the CAA first solicited bids for liability coverage, the best response it got was a $7 million policy from Federal Insurance Co. for an annual premium of $17,600.
Board members approved that policy last month and accepted the fact that their liability limit would be lower than in the past.
But then Arthur J. Gallagher, an insurance broker, told Kent County Risk Manager Phil VanDyke that Royal Surplus offered to fill the missing $3 million gap with an excess policy for $6,000 plus a 2.5 percent surplus line tax.
Now board members have $10 million worth of liability coverage for about $24,000, or $2,400 per $1 million of insurance.
Three years ago, that coverage cost the CAA $13,500, or $1,350 per million.