FY 27 Proposed 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 fiscal year, these budgeted funds are transferred into the Self-Insurance Fund, from which all claims are paid. Costs of insurance for the Libraries, Sheriff's Office and Detention Center are reflected 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 benefits in the State of Maryland and maintaining excess of insurance covering catastrophic losses.

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