Cincinnati Insurance dumps Thurmont

By James Rada Jr.
News Editor

THURMONT, Md. – Thurmont has lost its insurance coverage as a result of the court award against the town involving sewer back-ups in houses in town.

The town has been using Cincinnati Insurance for 10 years, but as of September 1, the town will have to find a new insurer.

“We’ll probably use the Local Government Insurance Trust, but that will be more expensive,” said Mayor Martin Burns.

The town had expected to pay $88,875 for its property, liability, police liability and public official liability this last year. With the new premium expected to be more costly and taxes already set, the town will either have to draw on its rainy day fund or hope that revenues come in higher than expected.

In May, a Frederick County Circuit Court jury awarded seven Thurmont families nearly $3.5 million for damages resulting from a sewer backup occurring in their homes in 2003. There has been a question of whether Cincinnati Insurance would cover that amount.

“Our policy is significantly larger than $1 million, but they (Cincinnati) may argue that parts of the jury award aren’t covered,” Burns said.

The town is appealing the jury award, but a final decision could take years. If there is any final award amount, the town will then have to argue with Cincinnati Insurance to make sure the full amount is covered.

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