b"City of Dover Tuscarawas County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2019 Note 11Risk ManagementThe City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.During 2019, the City contracted with the Hartford Steam Boiler for boiler and machinery insurance.EMC covers the general liability and property insurance.AutoOwnerscoverselectronicdataprocessing,whilepoliceandprofessionalliabilityare protected by Hudson Insurance Group with a $1,000,000 limit and a $10,000 deductible.An umbrella policy withMerchantsMutualcoversa$5,000,000excesslawenforcementliability.TheCityhasacyber insurance policy with Axis Insurance.Boilerandmachinerydeductiblelevelsvarybyobject.VehiclesarecoveredbySelectiveInsurance Companyandholda$1,000deductibleforcomprehensiveandcollision. Automobileliabilityhasa $1,000,000 combined single limit of liability.There has not been a significant reduction in coverage from the prior year.Settled claims have not exceeded this commercial coverage in any of the past three years.The City pays the State Workers Compensation System a premium based on a rate per $100 of salaries.The rate is calculated based on accident history and administrative costs.The City has elected to provide employee medical/surgical benefits through a self-insured program.The City maintains a self-insurance internal service fund to account for and finance its uninsured risks of loss in this program.A third-party administrator, Aultcare, Inc., located in Canton, Ohio, reviews all claims which are then paid by the City.An excess coverage insurance policy covers claims in excess of $175,000 per employee and an aggregate of $3,167,889 per year.The City pays into the self-insurance internal service fund $1,000 family coverage or $500 individual coverage per employee per month which represents the entire premium required.This premium is paid by the fund that pays the salary of the employee and is based on historic cost information.In 2012, a resolution was adopted which allows an additional $500 premium to be paid for each employee monthly on an as needed basis.The claims liability of $241,869 reported in the fund at December 31, 2019, was estimated by a third-party administrator and is based on the requirements of Governmental Accounting Standards Board Statement No. 30 which requires that a liability for unpaid claims costs, including estimates of costs relating to incurred but not reported claims, be reported.The estimate was not affected by incremental claim adjustment expense and does not include allocated or unallocated claims adjustment expenses.Changes in the fund's claims liability amount in 2018 and 2019 were as follows:Balance at Current BalanceBeginning Year Claim at Endof Year Claims Payments of Year2018 $459,754 $2,176,450 $2,430,383 $205,8212019 205,821 2,288,572 2,252,524 241,869 - 50 50 -"