Failure To File Insurance Claim May Cost City

By Gordon HopkinsThe City of Fairbury has yet to file an insurance claim for losses caused when a company that contracted to purchase thousands of dollars of machinery from the city’s defunct municipal power plant left town without paying nearly two years ago, well past the filing deadline.FJN has obtained copies of insurance policies carried by the city with EMC Insurance Group, Inc. The Government Crime and Fidelity Coverage requires proof of loss be submitted within 120 days of discovery of the loss.On page seven of the document entitled “ Crime and Fidelity Coverage Part Declarations (Government Entities), section E, states that the insured’s “Duties In The Event Of Loss” include “(a) Notify us as soon as possible;” and “(b) Give us a detailed, sworn proof of loss within 120 days.”On July 15, 2024, in Jefferson County District Court, the City of Fairbury was granted a default judgment of $144,000. However, it is not known if the city will ever see any of the money. The company, Industrial Engineering Solutions (IES) and persons involved with the company have been sued in the past. FJN has spoken with some of those plaintiffs, who indicate they have never received their money back.In addition, the city is facing a number of expenses that will not be covered by the judgment. Most notable is the cost of remediating asbestos within the power plant building.On August 13, 2024, Fairbury Mayor Spencer Brown was asked if an insurance claim was ever filed by the city. The mayor responded, “Not to my knowledge.”When asked if he was aware of the 120 day reporting requirement, the mayor did not respond.

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