Self Insurance Fund
The Self Insurance Fund was established as a cost savings tool to address the high cost of purchasing commercial liability insurance. The City/District currently has a liability self-insured retention of $100,000, meaning that the City/District pays all expenses associated with a claim up to the first $100,000.
The City of Foster City is a member of a self-insured insurance pool known as Pooled Liability Assurance Network (PLAN) JPA that provides general liability coverage from $100,000 to $25,000,000 per claim. Any claim over $25,000,000 is the City’s responsibility. The pool also jointly purchases all-risk (property) and public officials’ bond insurance coverage for member agencies. PLAN JPA offers additional insurance, and the City participates in an enhanced cyber insurance program.
Expenditures in this fund represent the PLAN JPA premium and an allowance for expenses that may be incurred below the $100,000 liability self-insured retention, as well as property and vehicle damage deductibles. PLAN JPA premiums are largely based on the member’s payroll, services provided, and the value of property insured.
Revenues are derived from assessments to the City General Fund, vehicle replacement fund, water fund and wastewater/sewer fund; interest earnings; and any rebates of the PLAN JPA premiums based on positive experience and PLAN policy. PLAN JPA also offers a grant fund program to support member agencies with their safety and risk management programs.
The Self-Insurance Fund is funded to a target reserve level of $1 million.