Insurance Cost Projections

Insurance Budget Projections for FY '22/23

This is preliminary information for budgeting your allocated insurance expenses for FY '22/23. Departments that are funded as auxiliary operations will be charged insurance premiums for each of the insurance coverages indicated below. Education and General funded departments will only be charged premiums for any vehicle or medical malpractice exposures that may apply to their operations. Based on the information we have at this time, it is recommended that you budget insurance expenses as indicated below. However, please know that these are estimates based on projections at this time, and that greater than expected self-insured losses or premium increases by DRM could increase these rates.

Automobile Insurance Program

In preparing your FY'23 budget please use the auto liability rates below as they apply to each of your owned/long term leased vehicles.

  1. Busses and Ambulances - $1,100 per vehicle
  2. Trucks - $700 per vehicle
  3. Cars, Vans, Pickup Trucks, and Motorcycles - $375 per vehicle
  4. Scooters - $175 per scooter
  5. Trailers - $90 per trailer

Regarding Automobile Physical Damage Insurance, coverage will be provided for vehicles on the basis of Actual Cash Value (ACV-the depreciated value of the vehicle). We will provide coverage for physical damage on all vehicles that departments want insured. The cost is estimated to be $1.35 per $100 of each vehicle's ACV. 

Please be sure to immediatley notify Property & Liability Risk Management of any newly acquired vehicles during the year, especially vehicles valued higher than $25,000.

General Tort Liability

Please budget for this premium cost at approximately $38 per FTE for your department. (FTE count includes the full time equivalency of all full-time salaried and wage employees.) We obtain FTE counts for each area from the Human Resources Information System on a quarterly basis, and then we use the average FTE count for the previous twelve months prior to billing.

Medical Malpractice Liability

Those departments allocated a portion of the Professional Liability Insurance premium should anticipate that the premium charges for FY '22/23 may increase 10% over the current fiscal year's premium charge. This estimate may be revised upwards if losses are higher than expected.

Property Insurance

Included in the Property Insurance premium is coverage for the following: buildings, contents, business interruption, equipment breakdown (boiler & machinery), crime, and employee dishonesty. Departments that are allocated a portion of the property insurance expense should determine their building and contents replacement value, and anticipate a 10% increase in values for inflation. The anticipated premium rate for FY '22/23 is estimated to be about $.08 per $100 of the total value for buildings and contents.

Miscellaneous Insurance Policies

If your department requires other insurance policies tailored for a specific activity, such as watercraft, aircraft, and campers' insurance, please estimate an increase of about 10% over the current fiscal year's premium cost, unless you have been advised otherwise by Property & Liability Risk Management.

Risk Management Fee

The Property & Liability Risk Management operation is fully self-funded by charging a percentage of the insurance premiums. The anticipated Risk Management Fee, which will be loaded onto all insurance premiums, will be approximately 18.5%. Therefore, please increase your anticipated insurance premiums noted above by this percentage to determine the total cost of insurance and risk management services to your department.

If you have any questions, please contact Gretchen Kriebel at 434-924-3524 or