Lawsuits Might Trigger Modest Michigan Village to Lose Insurance coverage

A small village in Michigan’s Saginaw County is facing the prospect of losing its insurance coverage coverage following problems which includes a variety of lawsuits towards its officials and police chief.

The lawsuits and mounting legal charges drew the consideration of the village of Oakley’s insurance coverage supplier, the Michigan Municipal League, The Saginaw Information reported. It plans to drop the policy for the local community of about 300 when it expires July 1.

The Michigan Municipal League mentioned the decision is primarily based in element on the frequency of claims against the village, situated about 75 miles northwest of Detroit, as effectively as what the league explained was a lack of cooperation and commitment with chance management efforts.

Police Chief of Police Robert Reznick disputes the lack of cooperation allegation.

“I don’t know what they are talking about,” Reznick mentioned. “We never had an audit or a phone call from them.”

Mike Forster, administrator of the Municipal League’s insurance coverage pool, mentioned about 400 government authorities take benefit of the insurance coverage offered by the nonprofit self-insurance plan that is owned, operated and governed by its member communities.

“The choice to not renew coverage with a community is not taken lightly,” Forster stated by way of electronic mail. “It is unusual … to take this action, but it is not distinctive.”

The policy covers the police department, village officials, automobiles, the Village Hall and a lot more from civil claims, property damage and other liability. A new policy could expense Oakley upward of $ 100,000 a 12 months, which is virtually 10 times the recent fee.

Village President Doug Shindorf mentioned he understands why Oakley’s insurer would like to part ways with the local community.

“It’s been over $ 180,000 to defend these cases,” Shindorf explained. “They can’t afford it. This is a pool for all the villages.”

Oakley was incorporated in 1887. The lawsuits, mostly filed by owners of the Household Tavern of Oakley, query among other things the village police department’s need to have to have a reserve officer force of nearly 100 volunteers, who are allowed to carry weapons.

Dennis and Shannon Bitterman own the Family members Tavern and Dennis Bitterman has been a village trustee because 2012, but that hasn’t stopped him and his wife from taking legal action. Shannon Bitterman takes situation with the way the police department is run.

“We cannot inform an officer from a reservist,” she said. “They dress in a police-like uniform and report to the police. We do not know who they are. Others are in plain clothes.”

The police division is funded nearly completely by donations. Reznick stated his police department’s operation is not the dilemma.

“It’s not about sides or `us towards them,’ it’s about what’s correct,” Reznick said. “And what’s going on with them is not appropriate, and it hasn’t been.”

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