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Layton City Policy

Personnel Policy Manual

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1111 - Allocation of Self-Insurance Claims


The Risk Division may budget for "Self-Insurance Claims" in account 10-4125.551002. These claims usually include:

1. Payments within the City's $15,000 per occurrence liability insurance deductible, when the City is determined to be liable, usually in the following areas:

(a) Damages to Private Property
(b) Medical Expenses for Non-Employees
(c) Legal and/or adjuster's fees

2. Costs to repair city vehicles and other self-insured City property.

In addition, funds may be budgeted in the Sewer fund (5400-510-003) to pay for damages within the City's deductible resulting from a City sewer main backup where the City has been determined liable, or to make a humanitarian assistance payment when appropriate, when the city is not considered liable for the occurrence.

The cost of "non-preventable" self-insurance claims is paid from these accounts, while "preventable" claims, as determined by the City Manager, shall be paid for directly from departmental operations budgets to encourage departments to minimize preventable liability occurrences by implementing sound risk management principles.

The Department Director, with the approval of the City Manager, will determine the non-essential account(s) from which funds will be transferred. If the Department Director and the City Manager determine that funds cannot be transferred, the expenditure will be paid from the self-insurance claims account referred to above and the department's budget may be reduced in the next fiscal year.

Enacted, 7/22/1993
Amended, 6/4/2008, Previous Policy 1111
Amended, 1/7/2016, Previous Policy 1111
Amended, 1/12/2016, Previous Policy 1111

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