There was broad agreement with the need for a safety net provision in the form of a premium threshold. Many writers also point out that by using an absolute dollar threshold, insurance companies will quickly price their products to meet that threshold. Quite a few writers suggest that a threshold based on a percentage of an entity's operating budget would be a better way of offering a safety net. No writer suggested an actual percentage to be used in this regard. There is a lot of interest in this area.
All comments support the idea that self-insurance be an option for all entities.
In many cases, writers felt that self-insurance is a more sensible risk management technique than commercial insurance. They suggest that this would be unreasonable, particularly for a very low probability hazard. The remedy put forth is to treat an uninsured building as self-insured, which would disqualify it for Public Assistance below our schedule of eligibility criteria coverage, but would allow it to remain qualified for Public Assistance above that amount. This is one area where we received opposing viewpoints. They point out that the size of the deductible is a major factor for the premium amount, and is a calculated business decision on the part of the building owner.