First State will take over as Boonville’s liability, property and auto insurance provider after Boonville City Council approved the company’s proposal Monday.

The city received four insurance proposals — one from its current provider Savers Insurance Company, two from First State Insurance and one from MIRMA (Missouri’s Municipal Trust).

First State was selected because of the savings available to the city through its second bid with the overarching $5,000 deductible on a majority of its policies.

The council focused on those of Savers and First State, because the city found it difficult to compare MIRMA’s proposal to other policies, according to a council packet.

City Manager Irl Tessendorf welcomed representatives from both Savers and First State to give five-minute presentations to the council Monday. According to packet information, the Savers bid matches current insurance needs, while the first option from First State generally matches city needs with a few exceptions and the second option has a lower overall deductible.

“(Two years ago), the council decided to go with Savers. … By doing that, the city saved between $90,000-140,000,” said Charlie Brown, representing Savers. “My company has been in Missouri for over 38 years. They have over 320 cities insured right now. They have 1,100 policies for cities and municipalities throughout the state.”

The council considered general liability, law enforcement liability, employee benefits, public officials, employee practices, property coverage, inland marine or heavy equipment, auto coverage, cyber in case of IT breach, workmans comp and earthquake insurance. In the Savers plan earthquake coverage was included in property coverage. For First state, it is a separate policy.

Brown focused on the age of Savers and its experience when compared to First State, which is a relatively new insurer in Missouri. First State represents Branson and Hollister municipalities and is owned by Japan-based insurance company, Tokio-Marine.

Curtis Anderson, representing First State, said it is subsidiary of First State Community Bank out of Farmington, Missouri.

“We’re currently managing $80 million to $85 million in premiums. Mr. Connell is the specialist and the representative of the program from Tokio-Marine and its introduction into Missouri and how it is playing,” he said.

Connell said the First State/Tokio-Marine offers a three-year rate option.

For nearly all policies, First State allowed for a $5,000 deductible. Savers, depending on the policy, had deductibles anywhere from $500-25,000. The only potential increase in costs through First State is small sewer claims and claim expenses because of the $5,000 deductible.

According to packet information, First State would have less expensive costs to the city.

Tessendorf reviewed the pros and cons of each proposal with the council.

Savers’ claims expense and defense is outside of deductible costs, there is a zero deductible on sewer claims, a lower deductible on employee benefits and full earthquake coverage. However, Savers also has higher deductible costs, a higher bid price and no blanket coverage in property.

First state had lower deductible costs, blanket coverage for city properties and a lower bid price. It put claims expenses and defense inside deductibles, there is a higher deductible on employee benefits, earthquake insurance would be supplemental and sewer backup would have a $5,000 deductible.