FY 25 Harford County Approved Operating Budget

INSURANCE

ORIGIN & PURPOSE: The County maintains a Self-Insurance Fund for the purpose of paying Workers' Compensation, General and Automobile Liability claims and County Property Damage losses. Self-Insurance funding is determined on the basis of an annual contracted actuarial analysis and internal evaluation of loss experience and exposures. Funding requirements are allocated to the following budgets: General Fund Insurance, Highways Fund Insurance, and Water and Sewer Operating Fund Insurance. At the start of each fscal year, these budgeted funds are transferred into the Self-Insurance Fund, from which all claims are paid. Costs of insurance for the Libraries, Sherif's Ofce and Detention Center are refected in their budgets. The Self-Insurance Program is administered by Risk Management. The County implemented a policy of combining commercially purchased insurance with the retention of higher deductible levels, the use of selective self-insurance programs and the implementation of a risk management program, which includes a Countywide safety program. Workers' Compensation: Harford County, Maryland is an approved self-insurer with the State of Maryland Workers' Compensation guaranteeing its payments of workers' compensation benefts in the State of Maryland and maintaining excess of insurance covering catastrophic losses. General and Automobile Liability: Harford County, Maryland is self-insured for liability exposures and is subject to the Local Government Tort Claims Act, which limits our liability exposure. The County maintains a Self-Insurance Fund, based on actuarial recommendations, for the purposes of paying liability claims. Since 1991 the County has maintained excess liability coverage catastrophic liability claims. Property Damage: Harford County, Maryland has property insurance coverage with varying deductibles on real property and physical damage to County owned vehicles.

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