Havasu_Dreamin
09-01-2004, 06:49 AM
A by-product of the problems with CO in the channel. Glad to see that someone elses stupidity is what has caused this.
City seeks new liability insurer
By BRIAN WEDEMEYER
Tuesday, August 31, 2004 10:49 PM MDT
The carbon monoxide issue at Bridgewater Channel appears to have scared off one of Lake Havasu City's insurance carriers.
The city received a notice of non-renewal Aug. 23 from United National Insurance Company, which provides coverage for general liability and public official errors and omission. The one-year contract with United National expires Oct. 31.
The notice identifies "loss history" as the reason for non-renewal. However, the city's local insurance broker, Rick Stephens, and city staff said the company cited potential claims resulting from carbon monoxide poisoning in the Channel. Officials at United National could not be reached Tuesday for comment.
Hundreds of boaters and partygoers gather at the Channel on busy summer weekends, causing hazardous conditions at times from heavy boat exhaust.
In July, the family of Mark Tostado, who drowned in the Channel over Memorial Day weekend in 2003, sued both the city and county for unspecified damages after both entities rejected $2 million wrongful death claims. The suit alleges that public safety was not maintained and that boaters were not adequately warned of potential danger.
The family of another man who drowned in the Channel over Labor Day weekend of last year has retained the same law firm and is also considering legal action.
The city has since taken action to reduce carbon monoxide exposure in the Channel, including an air quality monitoring system and an ordinance prohibiting boats from idling while beached.
"Although the city has taken what I consider very good, proactive steps, I think the insurance carrier decided there was still the potential of future claims and just did not want to be involved with it," Stephens said.
Jaime Schulenberg, the city's risk manager, said the search for a new insurance coverage was already underway prior to receiving the notice. A number of options are being considered including self-insurance, the Arizona Municipal Risk Retention Pool and other conventional insurers.
"We are trying to make sure we get the best product for the city at the best price," Schulenberg said. "Our loss history is excellent, which makes Lake Havasu City a very marketable and desirable account."
The cost for this year's coverage through United National is nearly $250,000. The city's total premium, including other carriers, is more than $700,000.
Stephens said there is a possibility the carbon monoxide issue could lead to higher insurance costs.
"But not all carriers are going to look at this potential threat in the same manner," he said. "I think most carriers will look at it and see the city has done everything it can do."
Reprinted without the permission of the Today's News Herald
City seeks new liability insurer
By BRIAN WEDEMEYER
Tuesday, August 31, 2004 10:49 PM MDT
The carbon monoxide issue at Bridgewater Channel appears to have scared off one of Lake Havasu City's insurance carriers.
The city received a notice of non-renewal Aug. 23 from United National Insurance Company, which provides coverage for general liability and public official errors and omission. The one-year contract with United National expires Oct. 31.
The notice identifies "loss history" as the reason for non-renewal. However, the city's local insurance broker, Rick Stephens, and city staff said the company cited potential claims resulting from carbon monoxide poisoning in the Channel. Officials at United National could not be reached Tuesday for comment.
Hundreds of boaters and partygoers gather at the Channel on busy summer weekends, causing hazardous conditions at times from heavy boat exhaust.
In July, the family of Mark Tostado, who drowned in the Channel over Memorial Day weekend in 2003, sued both the city and county for unspecified damages after both entities rejected $2 million wrongful death claims. The suit alleges that public safety was not maintained and that boaters were not adequately warned of potential danger.
The family of another man who drowned in the Channel over Labor Day weekend of last year has retained the same law firm and is also considering legal action.
The city has since taken action to reduce carbon monoxide exposure in the Channel, including an air quality monitoring system and an ordinance prohibiting boats from idling while beached.
"Although the city has taken what I consider very good, proactive steps, I think the insurance carrier decided there was still the potential of future claims and just did not want to be involved with it," Stephens said.
Jaime Schulenberg, the city's risk manager, said the search for a new insurance coverage was already underway prior to receiving the notice. A number of options are being considered including self-insurance, the Arizona Municipal Risk Retention Pool and other conventional insurers.
"We are trying to make sure we get the best product for the city at the best price," Schulenberg said. "Our loss history is excellent, which makes Lake Havasu City a very marketable and desirable account."
The cost for this year's coverage through United National is nearly $250,000. The city's total premium, including other carriers, is more than $700,000.
Stephens said there is a possibility the carbon monoxide issue could lead to higher insurance costs.
"But not all carriers are going to look at this potential threat in the same manner," he said. "I think most carriers will look at it and see the city has done everything it can do."
Reprinted without the permission of the Today's News Herald