Kauai voters will be asked to decide if the county should have more options for shielding itself from financial loss.

As it stands now, the county can only purchase a type of coverage called a surety bond that cover the duties of employees entrusted with handling the county’s finances. If those finances are mishandled or stolen, the bond would protect the county against those financial losses.

However, county officials have found that purchasing insurance policies can cover more employees at a lower cost.

The question that will appear on the ballot is: “Shall the Charter be amended to allow the use of insurance policies for certain or all employees to protect the County against financial loss?”

The question was put forward by Kauai’s Charter Review Commission.

“The current language only requires surety bonds – it doesn’t give them any options,” 

Jan TenBruggencate, a member of the commission, said. “What we want to do is give them the option.”

Kauai County has not done a formal analysis comparing costs of insurance policies versus surety bonds, according to a county spokesman.

But insurance broker William Sandkuhler told the commission in January that buying insurance is generally more cost effective, and could cover more employees under a blanket policy. Right now, surety bonds require coverage for specific individuals. 

“If the Charter Amendment is adopted, the County will continue to secure the most comprehensive coverage at the most affordable cost,” county spokesman Alden Alayvilla said in an email.