MARCH 14, 2006, FARMINGVILLE, NY – Brookhaven Town can increase its insurance coverage and cut its insurance costs by more than half, according to presentations from seven insurance firms the Town Board heard at a work session Thursday. Fees from the firms reviewed would average $216,000 for the year, as opposed to the more than $600,000 in commission fees paid in 2005.
“The Town of Brookhaven will receive increased insurance services while saving some $400,000 this year,” said Supervisor Brian X. Foley. “This is a win, win situation for taxpayers. The town has been throwing money away in its insurance coverage for decades. That is going to stop now. This outrageous waste of taxpayer money is over.”
The board is expected to select a new insurance provider at its regular meeting Tuesday.
The town received 19 bids for new insurance coverage, and its Insurance Working Group assessed all the proposals and selected the top nine firms for review by the Town Board. The board reviewed proposals from those nine firms at its work session last week. All the firms offered better coverage at a cost of less than half of what was paid last year.
The town relied on the services of two insurance brokers, Thomas M. Neppell and Sons, Inc. and Edwards and Company, for more than 20 years. Last year, Neppell received $375,703 in commissions and Edwards received $237,186, for a total of $612,889. The town’s insurance needs were not secured through a competitive bidding process—until last week.
The town’s next step in correcting the insurance mess will be to issue a reference for proposals for next year’s insurance coverage.
The Insurance Working Group that spearheaded the review of the town’s insurance coverage is comprised of Deputy Supervisor Jack Schnirman, Insurance and Risk Manager Robert Froehlich, Finance Deputy Commissioner Thalia Bouklas, Councilman Steve Fiore-Rosenfeld, and Town Attorney Robert Quinlan.
Office of the Supervisor
One Independence Hill • Farmingville • NY 11738 • Phone (631) 451-6955 • Fax (631) 451-6677
www.Brookhaven.org