SARATOGA SPRINGS — The city of Saratoga Springs may face the loss of its liability insurance coverage in 2026, as rising costs and mounting legal claims place pressure on insurers. According to estimates from the city’s Finance Department, liability insurance premiums are set to rise another 10 per cent, bringing the annual cost to nearly $2.4 million.
Although this increase of approximately $224,000 is far less than the $1 million rise seen in 2024, outgoing Commissioner of Accounts Dillon Moran has warned that the city could lose its current liability insurer if it continues to face a high volume of lawsuits, particularly civil rights claims.
Moran, who has also served as the city’s purchasing agent and Risk and Safety Department supervisor, noted that three pending federal lawsuits filed last year could result in substantial insurance payouts. These claims stem from the alleged mistreatment of Black Lives Matter protesters, including unlawful surveillance and arrests deemed unsupported by evidence, following a state attorney general investigation.
“We have a poor record, a high loss rate,” Moran said, citing prior incidents such as fires at the public works garage in 2017 and City Hall in 2018, in addition to the BLM cases. Moran expressed concern that ongoing ticketing of unhoused individuals and housing activists under the city’s new public camping ban could trigger further civil rights lawsuits, potentially jeopardising insurance coverage.
Insurance Cost History:
| Year | Insurance Provider | Annual Premium |
|---|---|---|
| 2023 | Travelers Property Casualty Co. | $972,430 |
| 2024 | New York Municipal Insurance Reciprocal (NYMIR) | $1,942,000 |
| 2025 | NYMIR | $2,184,000 |
| 2026 (estimated) | NYMIR | $2,408,000 |
Travelers Property Casualty Co. previously threatened to withdraw coverage in 2023, citing “an unacceptable increase in hazards” due to the city’s risk management practices. Subsequent disputes over departmental oversight, resignations, and lawsuits further complicated the city’s insurance position.
Legal experts note that repeated claims directly impact premiums. John Bailey, a municipal attorney, explained that while not all lawsuits result in insurance payouts, insurers consider the city’s overall claims history when setting fees. If NYMIR withdrew coverage, self-insurance could cost the city up to $10 million annually.
Pending Lawsuits:
| Type of Lawsuit | Details |
|---|---|
| Federal civil rights | Alleged mistreatment of BLM protesters |
| Police misconduct | Arrest of Uber driver in March 2026 |
| Wrongful death | Darryl Mount, 21, died during police chase in 2023 |
| Employment disputes | Former commissioner and city employees suing for alleged mistreatment |
| Land use and FOIL disputes | Sidewalk falls, stormwater damage, denied public record requests |
In total, 18 lawsuits are pending in state Supreme Court records, not including county-level cases. Over the past three years, the city has spent more than $441,000 on outside legal counsel to defend officials, boards, and employees, with additional costs for negotiating civil rights claims.
Moran has suggested repealing the public camping ban and implementing police reforms to reduce future claims, while Mayor John Safford expressed confidence that insurance coverage is secure, citing improved council cooperation. Moran, however, insisted that the risks arise from the city’s history of claims rather than interpersonal dynamics.
Bailey commented that the litigious culture reflects a broader national trend. “Instead of resolving disputes through discussion, people increasingly resort to litigation,” he said, noting that this trend affects municipalities nationwide.