The Mudron Agency also handles the insurance of the Joliet – Shaw Local museum

Joliet Councilman Pat Mudron’s insurance agency handles coverage for the Joliet Area Historical Museum, a second city-affiliated institution that does business with the councilman’s company.

The city’s inspector general has concluded that a deal Mudron Kane Security reached with the Rialto Square Theater in April violates state law and a city ordinance. The inspector general is also investigating the museum’s insurance coverage.

Mudron said Wednesday that he believes he has done nothing wrong.

He said a partner in his firm is handling the museum business, but the contract is actually owned by the estate of Jeff Thompson, the deceased owner of Northern Illinois Insurance, which managed the museum business before Thompson’s death.

“We don’t own it, so you can say whatever you want,” Mudron said. “We do not own the insurance policy. This policy is owned by Jeff Thompson.”

Mudron said commissions from the business are paid to the Thompson Estate, although Mudron Kane collects a service fee.

The museum policy is one of perhaps 100 policies in Thompson’s estate that Mudron Kane Insurance is in the process of trying to buy, he said. Until then, he said, they remain the property of the estate.

Inspector General Sean Connolly would not comment on whether he is looking into the museum’s business.

But the museum’s executive director, Greg Peerbolte, said he had been questioned by the inspector general about the insurance.

He confirmed that the museum’s policy had been with Northern Illinois Insurance, but Mudron Kane Insurance is now listed as the museum’s broker. The policy is with Cincinnati Insurance, the same company that took out construction and liability insurance for the Rialto in April when the theater was about to lose coverage.

Peerbolte said that Joe Kane is in charge of securing the museum for Mudron Kane.

“Joe has been great to work with,” Peerbolte said. “We are still very pleased with Joe. He’s very competitive.”

Kane is one of three partners in Mudron Kane Insurance along with Mudron and his son, Shamus Mudron. Mudron said his son addressed the Rialto policy after the theater’s board chairman approached Mudron when the theater was about to lose coverage.

Mudron Kane took out a $248,000 theater policy that offered full coverage. Rialto’s other option was a $450,000 policy obtained through its usual broker, Brown & Brown, that did not offer liability insurance and umbrella coverage.

Connolly’s report on the Rialto case concluded that the policy ran afoul of legal restrictions on elected officials doing business with the units of government they represent. Rialto is not controlled by the city of Joliet. The mayor, however, appoints board members along with the governor, and Rialto receives $375,000 in an annual subsidy from Joliet.

Mudron had served as the city’s liaison to the Rialto board until he was removed by the mayor on Tuesday.

Museum connections with the city are more direct.

The city owns the museum building and has a lease with the state for the old Joliet Jail, which the museum manages as the city’s partner in the effort to make the former Joliet Correctional Center a destination and event venue.

Insurance policies handled by Mudron Kane, according to Peerbolte, include general liability for the museum, construction coverage for a prison visitor center and liability coverage for prison tours.

Those coverages are specifically required by the city, which also provides coverage through its insurance for the museum and jail, Peerbolte said.