Newsletters - California JPIA

Issue 169 - March 2026

Liability Insurance Market Update

Hard Market

If you follow the news, you are aware that civil jury verdicts in California have been reaching record levels. Large awards that once seemed extraordinary are increasingly common, and the trend shows no sign of slowing. What you may not know is how directly and materially these conditions are affecting the cost of coverage for Authority members and public agencies more broadly throughout the state.

The liability insurance market continues to harden. Carrier capacity has diminished, the number of reinsurers willing to write California public entity business has declined, and those that remain are applying increasingly restrictive terms and conditions. This is an industry-wide problem impacting schools, counties, cities, and special districts alike. Many JPAs and self-insured programs are experiencing reserve depletion as high-severity liability claims continue to escalate.

Root Cause

The root cause is social inflation—a term used to describe the way legal, cultural, and societal trends drive claim costs beyond what can be explained by economic inflation alone. Contributing factors include:

Broader definitions of liability
Third-party litigation financing
Inflated settlement valuations
Social media impact on public opinion
Nuclear verdicts (exceeding $10 million)
An aggressive and well-organized plaintiffs’ bar
Courts and juries favoring plaintiffs
Case law eroding governmental immunities

Claim categories experiencing the most pronounced cost escalation among California cities and municipal service organizations include vehicle accidents, allegations of hazardous conditions of public property, employment practices liability, slip-and-fall incidents, and police use of force cases. Unfortunately, large verdicts set new baselines for future settlement demands in comparable cases, reinforcing the rising cost trajectory.

Member Contributions

Member contributions for liability coverage have increased between 25 and 30 percent on average for most members going into 2026-27. This is a significant cost increase impacting both the primary and excess liability programs. It is a direct consequence of the claim trends described above. Conversely, other coverage lines, including workers’ compensation and first-party property, are performing well and experiencing normal claims activity and stable financial performance.

What the Authority is Doing

During hard markets, the value of Authority membership becomes more apparent. When conditions are difficult, the advantages of shared resources, collective purchasing power, a unified market presence, and specialized expertise prove indispensable. This underscores the importance of the Authority’s longstanding practices, close collaboration with members, and risk management focus dedicated to protecting the communities we serve.

The Authority is actively leveraging its size and collective resources to address rising liability costs—working to prevent, control, and mitigate losses, pursuing meaningful legislative reform, and keeping members informed every step of the way. Our goal is to provide a clear picture of the challenges we face and what we are doing together to address them.

In addition to extensive discussion and analysis at the advisory committee level, individual member meetings are being held upon request to field questions and provide additional information. The Authority’s website will be updated in early April with a new resource page that provides more detailed information on annual contributions, social inflation, and legislative advocacy efforts.

We are grateful for the trust our members place in the Authority and are committed to earning it every day.

13^th Annual Capstone Award Nominations Being Accepted

Are you an individual who exemplifies risk management, or do you know someone who does? We want to hear from you! The Authority is seeking nominations for the 13^th Annual Capstone Award. The award is presented annually at the Authority’s Risk Management Educational Forum to an individual who exemplifies best practices in risk management. To submit a nomination, you will need to complete a brief survey. Submissions will be accepted from March 30 through April 27, 2026.

Nominees can be from any position within a member agency. They need to be champions of risk management! Here are the characteristics that will be considered:

Works to support or improve risk management within your agency.
Influences others in developing or maintaining positive risk management efforts in the work environment.
Exhibits good risk management practices in the workplace.

At the 2025 Risk Management Educational Forum, Dorna Farhadi, human resources manager for the City of Laguna Niguel, was presented with the Capstone Award. Farhadi was selected from four finalists and chosen for her role in advancing the city’s risk management efforts. In her role, Farhadi led the development of a citywide Wellness Program focused on staff well-being. She also worked with the Authority to address significant risk concerns related to the reconstruction of a major arterial road.

The 2026 Capstone Award winner will be recognized at this year’s Forum on October 7–9, 2026, at the Portola Hotel in Monterey. For more information about this award, visit the Capstone Award website page or contact us via email.

Handling Challenging Library Patron Behaviors: Use These Six Choices

By Dr. Steve Albrecht

At every level, library staff play a vital role in ensuring excellent service, a safe environment, and secure spaces for all patrons. To support National Library Week, which runs from April 19 through 25, 2026, the California JPIA is highlighting safety concepts for member agencies with libraries.

Course Developer and Instructor, Dr. Steve Albrecht, who teaches the Authority’s library service, safety, and security workshops, said that during the course, staff often ask if they handled a difficult patron situation correctly. While there is no way to predict every behavior, Albrecht has six criteria related to library safety that provide a service framework for responding to problematic patrons.

While the six approaches listed below do not encompass every scenario, they provide a structure of support that may help during difficult situations.

Intuition

When faced with a difficult situation, what does your gut feeling tell you to do? Does it tell you to get help, back away, call a manager or supervisor, push the panic button, or call 9-1-1? Intuition is a valuable tool, says Hollywood security expert Gavin de Becker in his bestselling book, “The Gift of Fear: Survival Signals That Protect Us from Violence,” because it’s “knowing what to do without knowing why.” The ‘little voice’ that tells us to talk more, talk less, take action, get help, or move away, is built into our DNA. Don’t ignore it. Listen to your intuition.

Code of Conduct

What do the rules built into your agency’s Code of Conduct tell you to do? Is the patron’s behavior a clear violation, meaning they need to be asked to stop it or leave, or is it more about something that can be handled with a verbal warning?

The Code of Conduct can’t cover every problematic library behavior. Still, it’s a useful place to start, especially because it offers one of the best ways to be firm, fair, consistent, assertive, legal, empathetic, patient, and reasonable.

Library Policy

Many libraries have a Policies and Procedures (P&P) Manual that outlines the steps library staff need to take to address a range of issues related to patron behaviors. The P&P can be seen as a larger, more thorough, more in-depth version of the Code of Conduct.

State, County, or City Laws

Librarians do not need to become lawyers, but every state has a collection of law books that address various problematic library behaviors. These include the Penal Code (for crimes that occur in the library, like assault, battery, theft, vandalism, making threats); the Health & Safety Code (often used for drug and alcohol offenses); or the Welfare and Institutions Code (often used to define mental health concerns, like “danger to self or others” or “gravely disabled”).

Cities and counties have Municipal Codes that cover everything from illegal parking at the library to soliciting for money to overnight sleeping in public places.

The purpose of these law books and codes is to help library leaders and their staff enforce consequences for problematic library behaviors that harm the overall library experience and undermine the enjoyment others seek when they walk into the building. Library staff should familiarize themselves with each of these codified statutes.

Precedent

How has your agency addressed similar patron behavior issues in the past, particularly with some of the more persistent or “frequent flyer” patrons? Approaches can vary from branch to branch, as geography often influences both patron behavior and staff response. While what worked previously may not always be effective again, recognizing these patterns can help us avoid escalating situations and instead apply proven solutions based on prior experience.

Reasonableness

Reasonableness is an important concept for librarians to understand and apply when addressing challenging situations. This court-tested principle provides a foundation for determining whether the response given was appropriate. In practice, it means asking collectively, as library leaders and staff, “Did we do the right thing, on behalf of the staff and the patrons? Was our approach thoughtful and measured, making sure we neither overreacted nor under-reacted?” Being reasonable is about making decisions that reflect thoughtfulness and incorporate the previous elements listed above. By doing so, libraries can ensure their actions are grounded in fairness and serve the best interests of everyone involved.

These six approaches can assist your agency in building a safe, secure, peaceful, accessible library, with staff who are trained, empowered, confident, supported, and willing to serve all who want to use the facility properly.

Training

The Authority offers training for those interested in learning more about library safety and security. Library Service, Safety, and Security (in person) or Library Service, Safety, and Security – Virtual both cover the dos and don’ts of handling challenging, entitled, or even threatening patrons, and others who want to disrupt library activities. Other topics covered include safe workplace behaviors, security measures, and activating high-risk customer service skills. These trainings offer practical and realistic tools to make facilities better, safer workplaces.

To attend a training, contact your agency’s training registrar.

Resource Update

We’re pleased to share that the Authority’s Contractual Risk Transfer Manual (CRTM) has been updated to reflect new content and revisions to existing best-practice guidance. These updates are designed to address changing and emerging risk considerations and support members in their day-to-day operations.

New Content Highlights

The latest update introduces expanded guidance across several areas, including:

Self-insured retentions and deductibles
Aggregate limits
Information technology
Crime insurance and fidelity bonds
Unarmed and armed security
Automotive services

These additions are intended to address coverage considerations and align the manual with operational and risk management practices.

Revisions and Enhancements

In addition to new material, a couple of existing sections have been refined. Updates include revised guidance on agreements between public agencies and expanded information on equine insurance.

We encourage members to review the updated CRTM to familiarize themselves with these enhancements and continue alignment with best practices.

Online Contractual Risk Transfer Tool

Members also have access to an online Contractual Risk Transfer Tool that explains how properly executed contractual risk transfer shifts financial responsibility for losses to vendors, contractors, or other parties who control the relevant risk. Unlike traditional self-paced training, this resource serves as both a practical primer on the topic and an on-the-job reference tool to complement the CRTM, designed to guide daily decisions on contractual risk transfer.

Resources can be accessed and downloaded via the online library located in the resources section of the Authority’s website. Resources available in Word format are for members to customize to agency-specific policies and procedures. Trainings can be accessed through the Authority’s online learning management system.

If you have questions, please contact your regional risk manager.

City of Cerritos Celebrates 70^th Anniversary

The City of Cerritos marks its 70^th anniversary this year with a series of community events and initiatives honoring the city’s transformation from agricultural roots to a prosperous suburban community.

Founded as Dairy Valley in 1956, the city was originally an agricultural community. “We had more cows than people!” said Annie Hylton, director of community and cultural services. “We had highly successful dairy farmers, and when the city first developed, you had to have five acres of propery per home because the founders wanted to keep the land for agriculture.” The city changed its name to Cerritos in 1967, following a shift in zoning approved by voters in 1965 that allowed for regular suburban development. Shortly thereafter, Cerritos expanded rapidly, becoming the fastest-growing city in California from 1970 to 1972. The City Council showed visionary leadership in approving a detailed General Plan to guide the city’s development.

To commemorate its anniversary and agricultural past, Cerritos commissioned renowned sculptor Jane DeDecker to create “Milking Time—A Tribute to Dairy Valley,” a bronze sculpture that will be dedicated by the City Council at the Cerritos Civic Center this spring. The artwork features a cow, a farmer, his son and daughter, and the family’s dog. After the design was revealed, the city engaged the community in the project through a “Name the Cow” contest. After reviewing submissions and conducting a community vote, the winning name was Bessie; submitted by six different Cerritos residents.

In addition to the new local art, Cerritos will celebrate its 70^th anniversary with a Spring Fling & Fireworks Spectacular on Saturday, April 25, from 4:00 to 8:30 p.m. at the Cerritos Sports Complex. The free community event will feature a welcome from the Mayor and City Council, dance recitals, a concert, line dancing, games, crafts, food trucks, and a fireworks show at the end of the night.

The same day, the Cerritos Library will launch “StoryCorps: Voices of Cerritos—A Celebration of 70 Years,” a storytelling program inviting community members to record meaningful conversations with family, friends, colleagues, or neighbors. Trained library staff will guide the process. Select recordings will be added to the library’s local history collection and submitted to the StoryCorps Archive at the American Folklife Center at the Library of Congress.

The Cerritos Library is also presenting its 27^th annual Contests for Talented Teens, with anniversary-minded themes focusing on the city’s history and future. Contest categories include art (“Cerritos: Past, Present, Future”), photography (“Life in Cerritos”), poetry (“Heart of Cerritos”), and short story (“Cerritos in the Future”).

Cerritos has been a California JPIA member since April 1, 1978, when the Authority was founded. The partnership has provided, and continues to provide, significant support for the city’s risk management efforts and professional development initiatives. This February, Cerritos graduated its inaugural class from the Supervisor and Administrator Leadership Program, which the Authority helped the agency to launch. “Investing in our frontline leadership is probably one of the most important things that we can do,” said Drew Schneider, director of administrative services. “We really appreciate the support that the California JPIA has given us. And the fact that the Authority provides these resources at no cost, it’s just incredible.”

The city is working with the Authority on multiple initiatives, including participation in a wood chipper pilot program for the public works team. Recently, Authority staff have also supported Cerritos in revising human resources processes, improving driver safety training, and reviewing contract templates across the organization to incorporate best practices and proper duty-to-defend language.

Throughout its 70 years, Cerritos has maintained a strong sense of community pride, grounded in this robust staff support. “Our city has some very beautiful facilities, but what makes them very special is we have extremely dedicated staff who are very passionate about the services and programs that they provide,” Hylton said.

For more information about Cerritos’ 70^th anniversary celebrations and to view historical photos and videos, visit the city’s website and the Cerritos library’s website.

Congratulations to the City of Cerritos on 70 years of service to your community!

City of Pismo Beach Celebrates 80^th Anniversary

The City of Pismo Beach marks its 80^th anniversary this April with a year of community-focused activities highlighting its history, coastal culture, and strong sense of community. “Our goal is to honor the generations who helped shape Pismo Beach while celebrating the vibrant, forward-looking community we are today,” said City Manager Jorge Garcia. Throughout the year, the city will recognize the milestone through city council acknowledgments, historical storytelling across its communication channels, and partnerships with local organizations.

As the city enters its ninth decade, the city council remains focused on infrastructure investment, fiscal sustainability, public safety, environmental stewardship, and maintaining the character that makes Pismo Beach distinctive. The city is in the final stages of constructing new police and fire stations, representing a significant investment in public safety infrastructure. Additionally, Pismo Beach is preparing to go out to bid for an advanced water purification facility to provide a sustainable water resource for the community. Other upcoming priorities include continued street and utility improvements, coastal resiliency planning, park and public facility enhancements, and strategic economic development efforts that support the tourism-based economy while preserving quality of life for residents. “We are committed to long-term planning to ensure the city remains well-positioned to meet future challenges and opportunities,” Garcia said.

This commitment to community preparedness and risk management is linked to Pismo Beach’s decades-long partnership with the California JPIA. Investments in street rehabilitation, facility maintenance, stormwater systems, coastal resiliency, and emergency preparedness all reduce long-term liability exposure and improve public safety. “Over the years, this membership has provided stability, expert guidance, and valuable resources that support the city’s day-to-day operations,” said Garcia. “The city is consistently working with our risk manager, Tim Karcz, to find solutions and to highlight areas of opportunity.”

One of these recent partnerships took shape through a downtown sidewalk assessment and the grinding of concrete lifts to reduce trip-and-fall claims. By leveraging a master agreement coordinated by the Authority, the city secured below-market pricing, mobilized quickly, and reduced risk. Other proactive risk management strategies have included regular safety trainings for staff, property and liability risk assessments, ergonomic evaluations, workers’ compensation programs, and policy reviews to reduce exposure and improve operational safety. “The Authority has also supported the city in strengthening internal controls, updating safety protocols, and participating in loss prevention programs that ultimately reduce risk and protect public resources,” he said. “Risk management is an active endeavor, and Pismo Beach sees the dividends of being present on committees, academies, and training events.”

These active preparedness efforts all center around protecting the city’s character. “Pismo Beach is defined by its strong community identity, natural beauty, and engaged residents,” said Garcia. “At its heart, we’re a community that values small-town connection, responsible governance, and preserving the unique coastal lifestyle that has defined us for 80 years.”

Congratulations to the City of Pismo Beach on 80 years of excellence!

California JPIA Recognizes Five-Year Anniversary of Kelly Trainer Policky

The California JPIA congratulates Employment Practices Manager Kelly Trainer Policky on her fifth anniversary with the Authority.

“I’ve always said that the Authority offered me my ‘unicorn job,’” said Policky, who has managed the Employment Hotline since joining the Authority in 2021. “I have the opportunity to focus on the parts of public sector employment work I enjoy most, alongside an exceptional team, and I’m able to continue working with many of the attorneys and public agencies I have collaborated with throughout my career.”

Policky, who was a partner at Burke, Williams, Sorensen, LLP, prior to joining the Authority, knew she was making the right choice to leave the firm after a conversation with her father, a retired human resources (HR) professional, and her ‘in-house career counselor.’ “I’d been at Burke for 17 years, and I didn’t take leaving the firm lightly,” said Policky. “However, when I was talking to my dad about the offer, he said, ‘Kelly, I don’t know that I’ve ever said this before, but I don’t think there is a downside to this job,’ and he was absolutely right.”

The Employment Hotline is a resource that supports members in addressing employment-related matters on a pre-claim basis. It is a critical risk management resource for California JPIA members, offering support on a wide range of employment matters—from routine questions to complex investigations involving discipline, harassment, and discrimination complaints, as well as accommodation issues. Designed to complement, not replace, member legal counsel, the Hotline provides an additional level of review to help protect both individual members and the pool as a whole.

“The addition of Kelly as a California JPIA staff member was a real defining moment for the organization. Bringing her expertise in house has provided tremendous benefits for the Authority in many different areas,” said Chief Operating Officer Paul Zeglovitch. “While her work on the hotline is invaluable, so is Kelly’s creative contributions to our training catalog, including the Supervisor Essential Skills and HR Practioner programs. In addition, Kelly’s infectious enthusiasm has positively affected everyone around her”

Policky’s efforts have played a significant role in addressing challenging employment issues before they escalate into claims. She’s noted that over time, member Hotline needs have evolved.

“In conversations with members, I’ve seen both an increase in the volume of employment-related issues and greater complexity in many of the matters they are managing,” said Policky. “As demands rise, it can be challenging to keep pace when HR staffing levels have remained the same or, in some cases, decreased over the same period.”

Not only does Policky have an extensive background advising public employers on complex employment matters, but she also has an engaging and innovative training style that has made her a trusted resource for members and colleagues alike. She frequently presents at statewide conferences, including the California Public Employers Labor Relations Association (CALPELRA) Annual Conference, the Public Agency Risk Management Association (PARMA) Annual Conference, and various League of California Cities conferences, regional meetings, and events. A dynamic trainer, Policky says she tries to provide balance in her sessions, “Nothing is better than practical, real-world examples. Most participants want not only to understand the issue, but also to learn what effective solutions look like in practice. I always aim to strike a strong balance between the legal framework and practical application.”

Policky’s work reflects her belief that strong guidance and early intervention are key to reducing risk and supporting effective public sector workplaces. “I enjoy the range of work my role offers. I support members as they navigate complex situations, connect them with the resources they need, and help translate legal requirements into practical, workable approaches,” said Policky. “I also love collaborating with our training team and risk managers to develop innovative learning solutions and resources aligned with the real challenges our members face every day.”

“Kelly has been a dynamic force in shaping many of the trainings we provide, including workplace harassment prevention,” said Training Manager Ryan Thomas. “As one of our most popular trainers, she brings her expertise in curriculum development and passion for training to her role here. She is an invaluable resource, and we are incredibly fortunate to be able to work with her on a daily basis.”

Policky joined the Authority at an opportune time, as specialized courses for supervisors and HR professionals were being developed. Her insights into how to avoid common actions that lead to claims have been invaluable in creating both the Supervisor Essential Skills program and the HR Professional Series, as well as updating the HR Academy. “While many broad topics are available elsewhere, our content provides a deeper, practice-oriented focus tailored to local government HR,” said Policky. “I hope HR professionals at all experience levels—whether new to the field or seasoned leaders—will participate, strengthen their knowledge, share perspectives, and build their professional networks.”

Whether it’s assisting members with the Employment Hotline, training members at conferences and events, or working with colleagues to develop specialized training, we congratulate Kelly on five years of dedication to the California JPIA and its members!

Newsletter

Issue 169 - March 2026

NEWS: WORTHY

RISK SOLUTIONS

RE: MEMBERS

PRO: FILES