Skip to main content

Risk Management

PACIF Rate Update and a Look Forward

December 05, 2023

Those of you who are PACIF members should have received your municipality’s 2024 PACIF renewal invoice during the week of November 27. Please keep in mind that PACIF invoices are now sent quarterly, so the amounts listed on the current invoice are one-quarter of the annual contribution and one-quarter of the applicable contribution credit. If your organization has a volunteer fire department, rescue squad, or other entity that has the workers’ compensation in assigned risk, one-quarter of that amount is also included on the invoice. Along with the invoice are Property Casualty (PC) and Workers’ Compensation (WC) Breakdown reports. Note that payroll and contribution amounts for the assigned risk program do not appear on the 2024 WC Breakdown of Coverage Costs sheet because assigned risk is separate from PACIF workers’ compensation payroll. Please direct any questions about the invoices to VLCT’s Finance staff. 

As was mentioned in an October 31 email from Joe Damiata, VLCT’s Director of Risk Management Services, most members did see price increases this year. In some cases, the increases were substantive. While each member’s own loss experience plays a significant role in their overall annual contribution, PACIF did increase property rates by 8.7 percent. Additionally, member property values increased to ensure that the scheduled values continue to reflect the reconstruction value of structures – rather than an actual cash value  which may appear on a lister card. The combination of these factors led to a significant increase in the cost of most members’ property coverage. We also noticed that many members increased their estimated renewal payrolls more than in past years. Such increases in payrolls generally translate into higher workers’ compensation contributions because rating is based on estimated payroll. The 1.6 percent rate decrease in overall rates for workers’ compensation did help to temper price increases for that line of coverage. 

The primary drivers of the increased rates were higher reinsurance costs that PACIF has to pay to manage its own risk. Both property and general liability reinsurance pricing was adversely affected by external market trends, such as climate change for property and nuclear verdicts for general liability. The July flood event also had a significant effect on the cost of property reinsurance. 

However, all PACIF members need to keep in mind that they themselves play an important role in controlling coverage costs. To the extent that each member manages their own risk and controls claims, they also control their own loss experience rating. Beyond that, because PACIF is a risk-sharing pool, the more members that take steps to manage their municipality’s risk, the better the results are for the entire risk-sharing pool. Everyone’s efforts can help control the future cost of coverage. 

Key ways to manage your municipality’s risk include (but are not limited to): 

  • Take full advantage of member programs such as PACIF grants and scholarships, EPL referrals, law enforcement consultation, contract review service, etc. 
  • Use sound contracts and agreements that limit risk to the municipality when engaging with other entities. Make sure contractual language requires the municipality be added as an additional insured on external vendor’s general liability policies. 
  • Work closely with your loss control consultant to keep your employees safe, keep your facilities in good operating condition, and limit liability risk within municipal operations. For members with a higher number of claims, these consultants can analyze the loss data and develop specific risk management recommendations that, if implemented, can improve long-term loss performance. Contact your consultant directly or via email at losscontrol@vlct.org for assistance.  
  • Keep your employees trained and current on relevant safety and risk management topics with PACIF Learn (our learning management system) and PACIF loss control consultants. 
  • Evaluate risk to flood exposed buildings and develop risk mitigation or hardening strategies. Such capital improvements may even be eligible for a PACIF Grant. 
  • Always feel free to ask us questions when risk is a concern. If you don’t know who to speak with, our receptionist will make sure your request finds its target! 

Members that had flood losses this year should note that those claim values were not included in the loss experience and pricing for 2024. Instead, they will affect the 2025 renewal. Members can discuss how those claims might affect next year’s renewal by contacting a member of the underwriting team at underwriting@vlct.org.  

While 2023 has been a challenging year on many fronts, the PACIF team looks forward to working with you all to improve your risk management and safety practices, answer your questions, and assist you in any way that we can. Above all, we are here to serve you. 

Improve Accessibility Toolkit

According to the Centers for Disease Control and Prevention, up to 1 in 4 adults (24%) in Vermont have some type of disability.  The most common disability types are related to mobility and cognition.

About the Americans with Disabilities Act and the Rehabilitation Act

The Americans with Disabilities Act (ADA) is a federal civil rights law that prohibits discrimination against people with disabilities in everyday activities. The ADA prohibits discrimination based on disability just as other civil rights laws prohibit discrimination based on race, color, sex, national origin, age, and religion. It guarantees that people with disabilities have the same opportunities as everyone else to enjoy employment opportunities, purchase goods and services, and participate in state and local government programs. 

The Rehabilitation Act prohibits discrimination based on disability in programs conducted by federal agencies, in programs receiving federal financial assistance (i.e., grants and contracts), in federal employment, and in the employment practices of federal contractors.

Visit the ADA.gov website for an overview of federal civil rights laws and answers to common questions.

For questions about the ADA, call the U.S. Department of Justice ADA Information Line at 800-514-0301 (voice) or 1-833-610-1264 (TTY). Accessibility specialists are available to answer questions from individuals, businesses, and state or local governments. All calls are confidential.

About the Architectural Barriers Act (ABA)

The Architectural Barriers Act (ABA) applies to facilities designed, built, altered, or leased with federal funds. Passed in 1968, the ABA is one of the first laws to address access to the built environment. The law applies to federal buildings. It also covers non-federal facilities built or altered with federal grants or loans. Coverage is limited to those funding programs that give the federal agency awarding grants or loans the authority to establish facility standards.

While the ADA and ABA are very similar, there are also some differences between what the ABA standard requires for accessibility and what the ADA standard requires. According to the U.S. Access Board, the ABA and ADA Standards are different in these areas,: modifications and waivers (§F103), work areas, additions (§F202.2), leased facilities (§F202.6), exceptions for vertical access/elevators (§F206.2.3), emergency transportable housing (§F233, §809), and outdoor developed areas (§F244 - §F248, §1011 – §1019). The ABA is more restrictive than the ADA for some requirements. 

When reviewing federal funded grant agreements, it is advisable to pay attention to the grant conditions as to whether the ABA or other accessibility requirements apply. USDA Rural Development uses ABA for its Community Facilities program, whereas the Department of Transportation and the Department of Justice have provisions in their specific ADA Standards that are not found in ABA Standards.

Visit the U.S. Access Board’s Architectural Barriers Act website for information about ABA accessibility standards. The Guide to the ABA Accessibility Standards explains requirements, recommends best practices, and provides animations to explain some concepts.

For questions about the ABA Standards, contact the U.S. Access Board at 202-272-0080 or ta@access-baord.gov. Accessibility specialists are available to answer questions.

About the Vermont Access Rules

Vermont law has required that new construction, additions, and alterations in public buildings be accessible to people with disabilities since 1977. In some cases, Vermont law exceeds the requirements of the ADA. Vermont law is codified at 20 V.S.A. Chapter 174: Accessibility Standards for Public Buildings and Parking. 

The Vermont Access Board adopts rules on technical requirements for accessibility to public buildings. The Board also has Legislative authority to hear and grant variances from provisions of Vermont Rules. The Vermont Access Rules are available from the Division of Fire Safety, which enforces the Rules.

Disclaimer: Information contained in this toolkit is intended only to provide an overview, not legal advice.

  • Information about the Americans with Disabilities Act and the Rehabilitation Act is from the Guide to Disability Rights Law. Readers can learn more about the full requirements of these laws on the ADA website.
  • Information about the Architectural Barriers Act is from the U.S. Access Board. Readers can learn more about the full requirements of these laws on the Access Board’s ABA website.
  • Information about Vermont’s accessibility law is from the Division of Fire Safety. Readers can learn more about the full requirements of Vermont laws on the Division’s ADA and Accessibility website.
Publication Date
11/13/2023

Reasonable Suspicion Testing Training

This session will help fulfill the DOT 49 CFR §382.603 minimum training requirement that all persons designated to supervise commercial motor vehicle operators must receive training that consists of 60 minutes on alcohol misuse and 60 minutes on controlled substance use. Attendees will learn 

• how alcohol and controlled substances affect the human body 
• practical ways to approach drivers who are suspected to be under the influence 
• the importance of documentation in complying with these federal regulations

This training is a federal requirement for anyone who supervises or manages commercial motor vehicle operators. This includes Selectboards, Town Managers, and Road Foremen. PACIF recommends that more than one person at each municipality receive this training. First time attendees and anyone seeking a “refresher” are welcome. 


Recorded sessions reflect current applications of the law at the time of the recording and may expire at any time if the information becomes out of date.   Check out our other upcoming events here: Training & Events.

Board/Committee Meeting Date
Publication Date
12/30/2022

Planning Construction? Let PACIF Review the Contract!

With many municipal facilities aging, it is not uncommon for members to pursue construction of a new building. While this is generally a major undertaking process that may involve architects, engineers, contractors, legal counsel, and certainly the citizens who ultimately approve funding for the project, don’t forget that PACIF can also play a key role.

Most contracts for new buildings are complex enough to require a thorough legal review. This very important step is often best performed by municipal counsel. In addition to construction details and specifying who is responsible for what, the contract will include detailed insurance requirements for the project – contractual obligations for both the contractor and the building owner (municipality). This is where PACIF can help by reviewing the contract’s insurance requirements and providing feedback on several elements, such as:

  • the adequacy of the coverage limits that the contractor must maintain throughout the project,
  • special language or clauses that unnecessarily attempt to transfer risk to the municipality,
  • verifying that the municipality’s coverage limits meet the contract’s requirements, and 
  • identifying who is responsible for providing builder’s risk insurance.

The contract detail about builder’s risk insurance is important. These policies cover losses to the building from a variety of perils while it is under construction and may also be extended to cover things like construction materials before they are installed, sewer backups, and materials in transit. This coverage has an important role in protecting the interests of both the building owner and the contractors until the building is occupied. Virtually every construction contract will require it, particularly the ones that use an American Institute of Architects (AIA) template.

The contract will typically specify whether the builder or the building owner (municipality) will obtain and maintain the builder’s risk coverage. If the municipality is responsible for purchasing this coverage, PACIF can help. Working with our external insurance partners, we can obtain competitive quotes for coverage that meets your contractual needs.

In summary, when your municipality has received approval to build a new facility, or will be making major renovations to an existing facility, remember to contact PACIF so that we can review the contract  from an insurance perspective to make sure it has appropriate coverages, limits, and risk transfer language. We are here to protect your interests. After the contract is signed, we can help you obtain builder’s risk coverage if you are required to do so. Not buying builder’s risk insurance when you are contractually required to do so unnecessarily exposes your municipality and PACIF to substantial liability risk.
For assistance with contract reviews or getting builder’s risk insurance, contact a member of PACIF’s underwriting team at 800-649-7915 or underwritingdept@vlct.org.

Fred Satink, Deputy Director, Underwriting and Loss Control
VLCT Risk Management Services

Subscribe to Risk Management