The Carroll City Council is pleased to report a more than five percent decrease in the city’s property, liability, and workers’ compensation insurance renewal for Fiscal Year (FY) 2026. The FY26 premiums for the Iowa Municipal Workers Compensation Association (IMWCA) and Iowa Communities Assurance Pool (ICAP) policies total $610,416, nearly $34,000 less than FY25. Finance Director Laura Schaefer says the decrease can largely be attributed to a drop in the city’s mod factor, which rates an insured’s risk for workers’ compensation claims.
While premium decreases are always welcome, Ward 3 Councilman Kyle Bauer questions why IMWCA was the only insurer to submit a proposal to the city for FY26. Josh Axman with Mid-Iowa Insurance says most companies are unwilling to take on a client with an open workers’ compensation claim.
This creates a challenge for city officials if they want to consider other workers’ compensation insurers, as a single unresolved claim would prevent other companies from submitting a proposal. Axman says there is rarely a schedule for when workers’ compensation claims may be settled.
The budget gains in workers’ compensation insurance premiums were offset slightly by an approximately $23,000 increase to the ICAP liability and property insurance premiums. The final $610,416 cost still fell below the city’s FY26 budgeted amount of $679,142. The council voted unanimously at the June 9 meeting to approve the FY26 insurance renewals.
