By Ryan Lewis
Correspondent
JASPER, Tenn. – Since every local governmental entity can be liable for its actions, and sometimes even its inactions, they have to seek insurance from lawsuits.
In Tennessee, many towns prefer the Tennessee Municipal League Risk Management Pool as an alternative source of tort liability insurance.
At its March meeting, the Jasper Board of Mayor and Aldermen approved a resolution to renew the city’s membership in the TML Risk Management Pool.
Basically, the TML pool allows government entities to combine their liability risks. Each pays a contribution, or a premium, and receives coverage.
Since it’s not an insurance company, the risk management pool bases those premiums on how much loss the municipalities have experienced, officials said.
Jasper City Attorney Zach Kelly said the pool is simply an interlocal agreement between various entities across the state.
“It was initially set up to where they could assess (risk for) a participating municipality,” he said. “If their claims exceeded what the premiums were, they could come back and assess (collect from) everybody.”
Mr. Kelly said the TML pool’s right to reassess municipalities for risk had been eliminated a few years ago, and it had been slow to make revisions to the overall agreement.
He said assessment of risk is crucial, and the new agreement allows for reassessment when needed.
“What they’ve done now is written it to essentially benefit all the participating cities, and they’ve recommended and requested we approve it,” he said. “It looks like to me it’s the thing to do.”
Jasper Mayor Billy Simpson said the TML Risk Management Pool had always worked well for the city.
“It saves us a lot of money,” he said. “A lot of money.”
Ryan Lewis is based in Marion County. Contact him at ryanlewis34@gmail.com.