Agenda Item #47
School Board Property Insurance Policy Renewal
The Superintendent requests authority from the School Board to bind the District's property and boiler/machinery insurance policies on or before April 25, 2015. This request is necessary as the District's current property insurance policies are set to expire on April 25, 2015. We do not anticipate that the renewal quote and policy terms will be fully known by the Board's April 10, 2015 meeting, which is the only meeting prior to the renewal date. We anticipate the renewal will not exceed the 2014 renewal rate for all of these policies. The 2014 rate of renewal was $4,769,247.71. The current property insurance policies provide the District with all perils coverage except the peril of named windstorm up to $100,000,000 in coverage subject to a $100,000 deductible. In the event of a named windstorm, the current property insurance policies provide the District up to $70,000,000 in coverage subject to a 3% replacement value deductible for each building damaged. The boiler/machinery policy covers the District for all property losses that may occur up to $50,000,000 subject to a $25,000 deductible. All policies exclude terrorism related losses.
At this juncture, we believe the 2015 negotiations will result in an overall lower premium than 2014. Should the Superintendent be granted the authority requested, the savings will be used to purchase any one or more of the following: more coverage for named windstorm losses, lower the named windstorm deductible (or possibly cap the windstorm deductible to a maximum dollar value), purchase a terrorism policy to cover buildings and third-party related losses, or purchase a cyber-liability policy. We are currently negotiating with insurance carriers. Once all pricing and terms are known, the Board will be provided with an update outlining the coverage and policy terms.
To grant the Superintendent authority to bind the School Board's Property and Boiler/Machinery insurance policies as of April 25, 2015, up to a maximum premium of $4,769,247.71. No policies in excess of $4,769,247.71, will be bound without Board approval. If additional premiums should be required, they will be presented at a future Board meeting.
Information - 3/10/2015
Consent after Information4/14/2015
Authority for Action
Board Policy 8710
Involves Expenditure of Funds Directly in the Classroom
Source of Funding
Operating - Other
Mark Langdorf, Director of Risk Management, Ext. 620
Judy Preston, Associate Superintendent of Financial Services, Ext. 600