Delaware River Waterfront Corp. saves on insurance because insurers consider riverfront parks a single park system

The Delaware River Waterfront Corporation will pay about $41,000 less for commercial insurance for fiscal year 2012 than it did for FY 2011, in part because insurers are considering Race Street Pier, the multi-purpose trail, Washington Avenue Green and other park space as a single park system.

DRWC will spend nearly $7,000 of that savings for some new insurance, however – terrorism coverage. DRWC did not purchase this type of insurance last year, according to a report prepared by Director of Finance Rinku Modi, because it was so expensive. Costs dropped considerably this year, she said.

The total premiums paid for insurance in the dozen different categories DRWC had last year – including automobile, three types of liability, and workers’ compensation – dropped from $552,000 to $511,000. The two biggest savings came in the general liability category ($24,029) and workers’ comp ($23,778).

“Last year, we went up $40,000 because of Washington Avenue Green and the bike trail,” said DRWC Vice President Joe Forkin. “When the companies looked at it this year, they actually characterized the parks as one park system, and then we realized the savings,” he said.

The workers’ comp savings, Modi said, is the result of a smaller payroll.