Carthage, Missouri — The City of Carthage’s insurance deductibles will soon be significantly increased.
The city recently received a letter from its insurance company, Midwest Public Risk. According to the letter (see below), the company is overhauling the City of Carthage’s property and liability underwriting and rating processes.
Beginning July 1, 2025, the city’s deductible for “law enforcement liability” coverage will rise from $1,000 to $5,000 per incident. In terms of “public official and employment practices liability,” coverage will increase dramatically, from $1,000 to $50,000 per incident.
WATCH: Letter From City’s Insurance Provider Discussed At Council Meeting
Each city covered by Midwest Public Risk was individually assessed to determine its risk. Last October, Carthage received a letter of warning from the provider. It advised city officials to seek legal advice before firing a city employee, or risk losing their insurance coverage.
The letter was in reference to the wrongful termination lawsuit filed by Greg Dagnan, the former city administrator.
Midwest Public Risk Letter — Property/Liability Rating Updates
In addition to Dagnan’s pending litigation, the city is awaiting a Cole County judge’s decision on whether to reinstate impeached Mayor Dan Rife.
Last week, attorneys argued about the merits and legitimacy of the impeachment trial that took place in October. Rife was convicted by the council on a 6-2 vote. The question is whether six votes are sufficient to remove Rife from office.
The judge instructed attorneys to file proposed orders/judgments by today. As of the publication of this article, Paul Martin, the attorney for the City of Carthage, was the only one to file a proposed order in the case. Christopher Thornton, Rife’s attorney, has not made any posts on Case Net.
How Did We Get Here?
This tense power struggle within Carthage city government began in mid-2023, when Mayor Dan Rife fired all of the board members of the city-owned Carthage Water and Electric Plant for failing to comply with his request for financial information.
The City Council immediately reinstated the board members, dividing former City Administrator Greg Dagnan, Mayor Dan Rife, and former City Attorney Nate Dally against the council and CWEP board supporters.
Following that, former Parks & Recreation Director Mark Peterson was charged with embezzlement after Dagnan allegedly discovered missing funds while preparing the city budget. Following a forensic investigation, Peterson faces felony charges of money laundering and theft.
CWEP board members, including some elected officials, formed Carthage Citizens United, a political action committee, to promote City Council candidates who would fire Dagnan and impeach Rife.
That slate of Jana Schramm, Tom Barlow, Dustin Edge, and Derek Peterson – son of the accused former Parks & Recreation director – was elected on April 2, and they immediately fired Dagnan and began the impeachment of Rife, who had previously blocked the firing. The city attorney, administrative assistant, fire chief, and a handful of other city employees resigned.
Dagnan has sued the City for wrongful termination and defamation, as well as CCU for tortious interference with his contract, while Rife has sued to stop his impeachment due to due process.
