03-11-2008 Regular School Board Meeting
Agenda Item #28


Title
H-5. Renew the School Boards Property Insurance and Boiler & Machinery Insurance Policies

Discussion

The actual rate for the district's property insurance policy will be presented as soon as negotiations with the insurance carriers are completed.  The Office of Risk Management is negotiating the following 4 options.

Option 1:  Purchase the same $55 million limit with a 5% per campus wind deductible as purchased in 2007.  We anticipate a savings of $900,000 from what was paid in 2007.

Option 2:  Purchase the same $55 million limit as purchased in 2007 and seek a 4% per campus wind deductible.  We anticipate a savings of $700,000 to $800,000 from what was paid in 2007.

Option 3:  Keep the same premium renewal rate of $5.4 million and purchase more limit with a 5% per campus wind deductible.  We may be able to purchase as much as $75 to $80 million or more in limit.

Option 4:  Keep the same premium renewal rate of $5.4 million and try to buy our wind deductible down to 3% per campus.  It is difficult at this time to anticipate what the carriers will do with our limit.  In other words, the carriers may allow us to keep a $55 million limit or they may ask us to reduce the limit or pay more for the same or a higher limit.

Option 2 is believed to be the best option at this time.   



Recommendation
To grant the Superintendent authority to bind the School Board's Propety Insurance and Boiler & Machinery Insurance policies on April 25, 2008 up to a maximum premium of $5,395,062.

Meeting Date(s)
Information - 3/11/2008
Consent after Information3/25/2008

Authority for Action
Board Policy 8710

Involves Expenditure of Funds Directly in the Classroom
No

Source of Funding
Operating - Other

FY
Amount
Budgeted
Fund
Cost Center
Project
Function
Object
Program
08/09$5,395,062No10098550011647900322000

Contact
Mark Langdorf - Ext 620 or Judy Preston - Ext 600


Attachment:  Property, Boiler & Machinery Insurance Supporting Documents.pdf