Dickson Insurance Costs Drop Despite Growth in City Assets
City’s overall insurance premium expected to decline about 2.1% as favorable workers’ compensation record helps offset rising property and vehicle values
The City of Dickson is expected to pay slightly less for insurance in 2027 despite adding vehicles and increasing the value of property and equipment covered under its policies.
During the Oct. 5 Dickson City Council meeting, council members unanimously approved the city’s 2027 property, liability and workers’ compensation insurance package through Public Entity Partners, with Fusen Insurance Agency serving as the agent of record.
City officials were told that the overall premium is expected to decline by approximately 2.1 percent compared with the previous year.
That decrease comes even as several of the city’s insured values have increased.
City Assets Continue to Grow
The city currently has nearly $62 million in property coverage, according to information presented to the council.
That coverage includes city buildings and other property and generally carries a $5,000 deductible.
The policy provides replacement-cost coverage, meaning damaged property would generally be replaced based on current costs rather than depreciated value, up to applicable policy limits.
The city also carries coverage for millions of dollars in mobile equipment.
Officials said Dickson has nearly $3.2 million in covered equipment, including both smaller mobile items and higher-value equipment that is specifically listed on the policy.
Vehicle values have also increased.
Insurance representatives told the council that the city added 22 units during the past year, while the value of covered vehicles increased by a little more than $2 million.
Those additions pushed the city’s automobile premium higher, but savings in other areas were enough to offset the increase.
Workers’ Compensation Performance Helps Reduce Cost
One of the biggest reasons for the lower overall insurance cost is the city’s workers’ compensation record.
Insurance representatives said Dickson has had strong claims experience, resulting in a favorable modification factor that substantially reduces what the city pays for workers’ compensation coverage.
The city is receiving what was described during the meeting as roughly a 50 percent reduction in the workers’ compensation premium based on its modification factors and claims history.
Dickson also benefited from a dividend credit through Public Entity Partners.
Officials said the city received approximately $72,000 off its workers’ compensation premium because of favorable experience across the insurance pool.
Together, those factors helped bring the city’s total insurance cost down despite increases in payroll, vehicles and equipment.
Cyber Coverage Increasing in 2027
The city will also receive additional cyber-liability protection in 2027.
Dickson currently has $1 million in cyber-liability coverage, which is intended to help protect the city if sensitive personal or financial information is compromised through its computer systems.
Beginning Jan. 1, that coverage is expected to increase to $2 million under Public Entity Partners’ updated plan.
The city also carries coverage for employment-practices liability, errors and omissions, crime, automobile liability and other risks associated with municipal operations.
Council Approves Coverage Unanimously
After reviewing the proposed coverage, the City Council approved Resolution 2026-72 by a 7-0 vote.
The result gives Dickson slightly lower overall insurance costs at a time when the city continues to grow its vehicle fleet, equipment inventory and other assets.
While the reduction is relatively modest, the city’s claims history — particularly in workers’ compensation — appears to be helping keep those rising values from translating into a larger insurance bill.