Peachtree City has decided to guard itself more closely against the unforeseen.

The city is considering the purchase of catastrophic property and casualty insurance to supplement its own self insurance program. Bids from three companies were received and considered at last week's City Council meeting before the matter was tabled until the Sept. 16 meeting.

The lowest bid was given by the Georgia Interlocal Risk Management Agency and the Willis-Corroon agency, at a cost of $54,152 annually. This coverage would provide up to $1 million on automobile liability, automobile physical damage, general liability, law enforcement liability, and public officials liability. All categories would have a $25,000 deductible.

The other two bidders — J. Smith Lanier (American International Group) and Saville & Associates (Zurich/Hanover) — each provided proposals that would cost the city slightly more than $100,000 per year.

Joe Byrd, the city's insurance consultant, briefed the council on the bid specifications and the bids received. He recommended the Georgia Interlocal plan and said it was similar to the workers' compensation fund that the city has participated in for a number of years.

City attorney Jim Webb asked about the inclusion of legal expenses arising from zoning disputes in the coverage. Byrd said that those would be included, and that the insurer would have the right to settle if it so desired, which is standard procedure in insurance-related litigation.

Council members decided that it would take some time to understand the net cost increase, and they voted unanimously to table the proposal until the next meeting.

City staff said that the bids had been received about 60 days before the meeting, so they would be valid for at least another 30 days.

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