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Following a July Board of Mayor and Aldermen meeting, rumors regarding the city’s insurance were sparked.

In the meeting, City Administrator Jason Quick informed the board that the city now has a new insurance provider, Travelers Insurance Company. Quick thanked his staff for going through the process of retrieving quotes for the insurance since getting a quote for a municipality “takes an awful lot of information.”

“We saw a reduction of over a $100,000 in premium on our worker’s comp claims,” Quick said. “Property was the same, and we did see a liability increase of $95,000.”

In a statement to The News, Community Engagement Officer Lyle Russell gave further background.

“Tullahoma received a notice of non-renewal letter from Public Entity Partners (PEP) for the 2024-2025 fiscal year, and the reason given per the letter was due to “loss trends,” Russell said.

“Our premium costs with PEP for FY 2023-24 equaled $712, 273. After a short search for a new provider, the City of Tullahoma is now covered by Travelers.”

Russell added that Travelers offered the same coverage totals as the city had with PEP, but for a lower premium of $704,117.

“That amounts to an annual savings of $8,156 for the city while our coverage amounts remain unchanged,” Russell said.

“The part that did change was our deductible, which has increased from $10,000 per occurrence to $50,000 per occurrence.”

The statement added that after a meeting with representatives with Travelers, along with city department heads to learn the different processes regarding the insurance, the city is “comfortable” that their insurance needs are met with the new provider.