Peachtree

City has decided to guard itself more closely against the

unforeseen.

The city is

considering the purchase of catastrophic property and

casualty insurance to supplement its own self insurance

program. Bids from three companies were received and

considered at last week's City Council meeting before the

matter was tabled until the Sept. 16 meeting.

The lowest

bid was given by the Georgia Interlocal Risk Management

Agency and the Willis-Corroon agency, at a cost of

$54,152 annually. This coverage would provide up to $1

million on automobile liability, automobile physical

damage, general liability, law enforcement liability, and

public officials liability. All categories would have a

$25,000 deductible.

The other

two bidders - J. Smith Lanier (American

International Group) and Saville & Associates

(Zurich/Hanover) - each provided proposals that

would cost the city slightly more than $100,000 per year.

Joe Byrd,

the city's insurance consultant, briefed the council on

the bid specifications and the bids received. He

recommended the Georgia Interlocal plan and said it was

similar to the workers' compensation fund that the city

has participated in for a number of years.

City

attorney Jim Webb asked about the inclusion of legal

expenses arising from zoning disputes in the coverage.

Byrd said that those would be included, and that the

insurer would have the right to settle if it so desired,

which is standard procedure in insurance-related

litigation.

Council

members decided that it would take some time to

understand the net cost increase, and they voted

unanimously to table the proposal until the next meeting.

City staff

said that the bids had been received about 60 days before

the meeting, so they would be valid for at least another

30 days.