Self-Insured Detroit Approves Contract for Insurance Claims Investigation

The Detroit City Council today approved a $1.6 million no-bid contract at the urging of emergency manager Kevyn Orr as part of a deal with the state allowing the city to remain self-insured while in bankruptcy. Under the three-year contract beginning in October, York Risk Services Group of New Jersey will investigate and administer insurance claims against the city related to automobile and general liabilities, such as car crashes involving city vehicles. The city’s law department currently does the work. Detroit’s purchasing rules require such contracts to be competitively bid.