The Bowdon City Council voted unanimously Tuesday to renew its liability insurance coverage with the Georgia Interlocal Risk Management Agency instead of switching to a competitor.

In late April, when Bowdon City Manager Danny Mabry was first taking over his duties, he attended a meeting to hear a proposal from Public Risk Insurance Made Easy (PRIME), another liability insurance provider. He and City Clerk Stacy Folds then reviewed the positive and negative aspects of both insurers’ proposals.

“There is absolutely nothing wrong,” Mabry said of the city’s decision to look at different insurance providers. “In fact, it’s good due diligence to go out and see where you stand in the market.”

According to Mabry’s research, the Georgia Municipal Association created GIRMA in 1987 after a number of cities in Georgia were told that they would be unable to renew their liability insurance; GIRMA now covers 335 cities in Georgia.

PRIME is one division of the Glatfelter Insurance Group that has existed in Georgia for the past three years, according to Mabry’s research.

Mabry said he had a second meeting with PRIME representatives May 14, at which time they presented him with a revised proposal that reduced their total premium from $72,673 to $71,657. Mabry then deducted the additional costs of PRIME’s umbrella coverage and earthquake and fire coverage from the revised premium of $71,657 for a net premium of $68,564.

GIRMA’S premium totaled $65,206, $3,358 less than PRIME’s.

Mabry said that both plans had positive and negative aspects. PRIME’s coverage has no deductible for general/law enforcement liability and for crime coverage, while GIRMA has a $1,000 deductible for both.

PRIME offers public officials and employment practices coverage on a “claims-made” basis; GIRMA’s coverage is based on the losses occurred - meaning the city’s elected officials’ actions during their terms are covered even after they leave office. PRIME’s aggregate limit for this type of coverage is $3 million, while GIRMA’s is $5 million.

“That’s an area where you could find yourself with some pretty high losses,” Mabry said.

Mayor Jim Watts said that the city has experienced good coverage under GIRMA since the 1980s, and the company is currently processing the city’s claims from damages incurred during the storms May 11. Mabry said that GIRMA also provides the city with a loss control and safety program, free safety CDs and DVDs, semi-annual safety inspections and a free hotline for city employees’ legal questions. It also offers the city access to safety education training and safety grants, as well as earthquake and flood coverage, a service PRIME offered for an additional premium.