(1) When required by law or contract.

(2) When other methods of risk management or risk transfer do not reduce the loss exposure to an acceptable risk retention level.

(3) When certain necessary services, including legal defense and claims handling, can best be provided through the purchase of insurance.

(4) When self-insurance, including deductibles, does not result in long-term economy for the city.

(5) When the potential severity and degree of risk may result in a loss which would substantially affect the financial capability of the city to continue to provide essential public services and facilities. (Ord. 97-135 § 3, 1997; Ord. 89-98 § 1, 1989.)