I have two pieces of info that didn’t make it in our draft report I thought people might be interested in.
Initial information on the police budget is here. Our committee is still taking comments at pdpsrc@cityofmadison.com until midnight Monday night.
COST OF POLICE SHOOTINGS
City of Madison pays $500,000 and the insurance company pays the rest up to $12M.
- Paul Heenan (11/09/2012): Settlement amount – $2,300,000; Settlement check had a date of 9/23/2015
- Ashley DiPiazza (3/15/2014): Settlement amount – $4,250,000; Settlement check had a date of 6/17/2019
- Tony Robinson (3/6/2015): Settlement amount – $3,350,000; Settlement check had a date of 3/22/2017
With the other costs the city had, it goes up as follows:
Total claim costs above the settlement amount include the City’s legal and related costs (e.g., expert witnesses):
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- Paul Heenan – settlement amount $2,300,000; total claim cost $2,771,476
- Ashley DiPiazza – settlement amount $4,250,000; total claim cost $4,692,085
- Tony Robinson – settlement amount $3,350,000; total claim cost $3,953,767
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TOTAL = $11,417,328
More information – see full memo Insurance Fund information — Kemble — 6-10-2020
It is difficult to quantify the impact that these losses had on the City’s premium. The premium did increase in response, but the exact relationship cannot be determined due to the extent of the factors that are included in premium calculations. Some of these factors are reinsurance costs (both as a result of WMMIC’s experience and the reinsurers’ book of business across the United States), exposures changes, retention changes (both the City’s and other WMMIC members), loss experience of other WMMIC members, and WMMIC’s administrative costs.
These losses did directly result in the City’s retention increasing from $300,000 to $500,000 in the last couple of years. This change was an underwriting decision made by WMMIC and its board as a result of the three law enforcement claims described above
COSTS OF OTHER SWORN OFFICERS
