Litchfield Switches Insurance Carriers to IML-RMA, Anticipates Savings and Lower Deductibles

Litchfield City Council Meeting | Nov. 20, 2025

Article Summary: The Litchfield City Council approved a switch in the city’s insurance provider to the Illinois Municipal League Risk Management Association (IML-RMA), a move expected to save money on premiums and significantly reduce deductibles for property and vehicle damage.

Insurance Change Key Points:

• Carrier Switch: The city is moving from ICRMT (Illinois Counties Risk Management Trust) to IML-RMA.

• Cost Avoidance: The previous carrier quoted an 8.45% rate increase, while the new contract offers a decrease in premiums.

• Deductible Drop: Deductibles for property and vehicles will drop from as high as $10,000 or $25,000 down to $500.

• No Payroll Audits: Unlike the previous provider, IML-RMA does not conduct end-of-year payroll audits that can result in unexpected bills.

The Litchfield City Council voted unanimously on Thursday, Nov. 20, 2025, to overhaul its insurance coverage, moving from its current broker-led plan to a direct partnership with the Illinois Municipal League Risk Management Association (IML-RMA).

City Administrator Breann Vazquez reported that the city’s previous carrier, ICRMT, had proposed an 8.45% premium increase for the coming year. In contrast, the quote from IML-RMA represented a roughly 4.76% decrease compared to the prior year’s costs, with a total estimated premium of $903,532.

Eric Little, a membership specialist with IML-RMA, presented the proposal to the council. He highlighted that the association is governed by a board of mayors rather than county administrators, which he argued helps the organization better understand municipal risks.

The most significant change for the city lies in the deductible structure. Little noted that while other carriers often require $5,000 to $25,000 deductibles, IML-RMA offers a $500 deductible for property, vehicles, and equipment.

“That’s where people really struggle to compete with us,” Little said.

Vazquez noted that over the last five years, the city paid over $75,000 in deductibles for equipment damage. Under the new IML-RMA plan, those same incidents would have cost the city only $6,000.

Another key financial benefit discussed was the elimination of workers’ compensation payroll audits. Unlike commercial carriers that bill municipalities retroactively if payroll exceeds estimates, IML-RMA uses a fixed contribution model.

“If you underestimated and now your payroll is actually higher… everybody else will bill you for that difference, and we don’t do that,” Little explained.

The council approved the new coverage, the membership ordinance, and a required return-to-work policy.