By Raychael Moseley / Managing Editor

Marshall Municipal Utilities has discontinued its boiler and machinery insurance coverage after receiving a quote that would have increased its annual premium by nearly $200,000.

Controller Tony Bersano reported the decision during the Board of Public Works meeting Wednesday, Oct. 14.

According to Bersano, Cincinnati Insurance Co. declined to renew MMU’s existing policy, which expired Sept. 30.

MMU sought alternative coverage from other insurance providers, but only Travelers Insurance provided a quote.

“Everyone declined except for one,” Bersano said.

The proposed annual premium would have increased from $80,561 to $279,696, an increase of $199,135, or approximately 247%.

“So, we’ve decided to not have any more of the machinery coverage going forward,” Bersano said.

The decision means MMU will no longer have the same insurance protection for certain equipment failures.

The discussion came as Bersano reported an additional insurance payment for repairs to generating Unit 6.

Cincinnati Insurance agreed to pay MMU an additional $750,209.16 after the utility disputed its original insurance settlement.

MMU previously received approximately $1.17 million in April 2025 based on estimated repair costs. However, actual repairs totaled approximately $3.6 million, leading the utility to request additional reimbursement.

The new payment brings MMU’s total insurance recovery for Unit 6 to approximately $1.92 million.

Officials said they would continue investigating potential insurance alternatives while operating without the previous machinery coverage.