The Town Council has approved remaining with the Primex Property and Liability and Workers’ Compensation Contribution Assurance (CAP) program for another three years.
Chief Financial Officer Frank Childs presented the proposed agreement at the Oct. 1 Town Council meeting.
Childs explained that CAP, which has been offered by Primex since 2011, provides a guaranteed maximum rate for towns using its services. The program provides “cost stability to its members by committing to a maximum percentage increase in each of the years.”
Primex is offering Derry a not-to-exceed 7 percent increase in Property and Liability and a not-to-exceed increase of 8 percent in Workers’ Comp, Childs said. Agreeing to the three-year commitment would provide coverage from July 1, 2014 to June 30, 2017, he said.
Committing to another three years of CAP would help the town in budgeting, Childs said. “It allows us to project for the long term and provides stability,” he said.
Childs said the town has had its Property and Liability insurance with Primex since 2003, and Workers’ Comp since 1987. “I find them very professional to work with,” Childs said. He also serves on the Primex Member Advisory Council.
“Seven percent is a lot,” Councilor Tom Cardon observed. “How is it determined?”
The cap for each town, Childs said, is determined by its usage.
The Council voted 7-0 to approve another three-year commitment to CAP.
