By:Chris Munzing
Long Beach Corporation Counsel Charles Theofan said he is confident that Marsh USA will provide better and more organized coverage for the city than City Underwriting could. "It seems to be exactly what we need," Theofan said. "They'll see what areas we may be underinsured and overinsured. They will be providing a full range of services."
As the city's insurance broker, it will be Marsh USA's duty to seek out insurance providers for the city. Theofan said Marsh USA, the largest insurance broker in the country, is better equipped to shop for insurance than City Underwriting because of its size and experience. "Marsh will be able to go out and get the most competitive rates for the City of Long Beach," he said.
Besides its function as the city's insurance broker, Marsh USA will also provide the city with a full risk management analysis. Theofan said that all of the city's property and equipment, from lawnmowers to the boardwalk, will be assessed to determine what coverage is needed and where.
"It deals with pointing out ways to do things differently," Theofan said. "They'll make recommendations to minimize liability risks."
Theofan could not guarantee, however, that Marsh USA would save the city money. "If we were to maintain the level of coverage we have now, they will save us money," he said. "However, the costs could rise if they find that more coverage is needed."
Theofan added that the city can expect the best service from Marsh USA because the city is not locked into a contract, and can dissolve the relationship at any time. "It means [Marsh USA] always has to perform if they want to keep the relationship going," he said.
The health benefit controversy that made headlines recently will not be affected by Marsh USA, Theofan said. He explained that the city and the unions within it will be meeting to talk about switching from an Aetna plan to an Empire plan. Theofan said Empire deals with city and state workers and does not require a broker.
