The city has been in the Independent Cities Risk Management Authority Liability and Worker's Compensation Program for 22 years.
"The city established an excellent reputation of pool risk avoidance," said Stephanie Mendenhall, the city's administrative services director.
The city has had only one major claim filed against it in the past decade, she said, but its costs to be in the pool have risen - and continue to rise.
"We expect that we will have an increase in our premium in the next coming year," Mendenhall said.
During the 2012-13 fiscal year, the city's net cost was $521,745 for general liability and $128,577 for pooled workers' compensation.
City staffers estimate the costs of using a provider outside the current program at $400,000 to $500,000 for general liability and $50,000 to $80,000 for workers' compensation.
Leaving the pool will also prevent the city from sharing the liability of other cities, Mendenhall said.
The program was formed with cities that were having difficulty getting competitive rates for excess liability, excess workers compensation, property, employee benefits and special events insurance coverage, according to a city staff report.
Upland participates in the pool's general liability and worker's compensation programs and maintains other required coverage through insurance brokers, according to the staff report.
"It's obviously a good idea anytime to look at alternate sources and looking at competing bids," Councilman Brendan Brandt said.
"I understand when we first did this 22 years ago this was the only game in town, but now the landscape has kind of changed, and not only are there private but also other public organizations that do provide a substantial savings to our general fund."
Reach Sandra via email, call her at 909-483-8555, or find her on Twitter @UplandNow.