Henry County Faces $1.1M Insurance Bill After ‘Excessive’ Claims
NEW CASTLE, IN — Henry County officials are navigating a “catastrophic avalanche” of rising costs that has effectively forced the municipality into a self-insured model.
Following an “excessive” volume of claims—primarily concentrated within the Sheriff’s Department—the county’s insurance premiums have nearly doubled in just two years, skyrocketing from $2 million to over $4.4 million.
The crisis reached a breaking point when the county’s previous provider, Travelers, dropped coverage mid-term in 2024 due to “increased risk.” After being categorized as a “troubled account” and rejected by nearly every standard municipal market in Indiana, the county has been forced into a specialty “large deductible” program via Obsidian and JWF Specialty.
During recent emergency work sessions, insurance broker Josh Estelle presented figures that left Council members reeling. To maintain any form of coverage, the county was forced to accept massive jumps in out-of-pocket liabilities, essentially making the local government responsible for almost all small and mid-sized accidents.
Under this new “high-risk” structure, Auto Liability deductibles skyrocketed from a previous range of $0 to $25,000 up to a staggering $250,000 per claim. General Liability also saw a significant spike, jumping to a $100,000 deductible, while Auto Physical Damage moved from no deductible to a $25,000 aggregate.
While Law Enforcement Liability remained stable at $150,000, the overall shift in exposure represents a dramatic fiscal burden for the county.
“When you’re sitting in a meeting and you hear those things, you kind of do a slight gasp,” said County Council member Bobbi Plumber. “It’s difficult to budget for the deductibles because they’re unknown. Nobody intends to wreck a vehicle… but we have to pay for the repairs.”
While officials have avoided “bashing” specific personnel, the data points directly to law enforcement as the primary driver of the premium surge. The Sheriff’s Office is currently facing 14 active tort claims, a historical high for the county.
Because the county’s total vehicle assets are valued at nearly $10 million, officials are also weighing an additional $17,500 premium to protect against “Yard Cat” losses—catastrophic events like tornadoes or fires that could wipe out a concentrated fleet of vehicles at the Highway or Sheriff’s departments.
The “One Bite at a Time” Solution: Seven New Funds
In a vote, the Henry County Council opted to create seven distinct “non-reverting” funds to manage these liabilities. Rather than one general account, separate funds were created for:
Health, Park, EMS, Highway, Commissioners, Sheriff, and Community Corrections.
The reasoning is two-fold: it allows the public to track claim “trends” by department and ensures that departments relying on different tax levies are handled appropriately.
Since these deductibles were not included in the 2026 budget, the Council has authorized departments to “run in the red.” As claims come in, the funds will show a negative balance, which the Council will then “backfill” using additional appropriations from the county’s $11 million unappropriated general fund.
A Warning for the Future
“For all intents and purposes, we’re self-insured now,” officials noted during the session. “Short of a catastrophic earthquake or nuclear blast… that’s where you’re at.”
The Auditor’s office will now be on the front lines, physically processing claim bills every week—a task previously handled privately by insurance carriers. While the county has the reserves to survive the immediate $1.1 million premium payment due on March 21, the long-term sustainability depends on reducing the frequency of accidents.
Key Timeline for Residents
March 21: Deadline for the $1,076,000 premium payment.
April Meeting: Council to review “actuarial math” to establish more reasonable budget estimates.
July: “The Moment of Truth”—when the full weight of other annual insurance payments hits the budget.
The Henry County Council will continue these discussions in public sessions, which are live-streamed on the Henry County YouTube page.
