Agenda Item #43
School Board Property Insurance Policy Renewal
The request to grant the Superintendent authority to bind is necessary as the Board's property insurance policies will expire on April 25, 2013. At the present time, we do not have the final price for the renewal, and we may not have the final price until April 25, 2013. Should our negotiations and final price be complete before the April 23, 2013 Board meeting, the final premium price will be presented at that time. Last fiscal year, the School Board was able to procure policies with fifteen (15) insurance carriers divided into five (5) separate layers of coverage for a total premium cost of $5,042,591. These policies include a $100,000 deductible for all perils except named windstorm. Named windstorms require a deductible of 5% of the appraised value for each building damaged subject to a minimum loss of $500,000 per storm. In the event of a loss, these policies would pay up to a maximum of $100,000,000 for all perils except named windstorm or hurricane which carry a maximum payment of $70,000,000.
To grant the Superintendent authority to bind the School Board's Property insurance and Boiler/Machinery policies as of April 23, 2013 up to a maximum premium of $5,042,591. No policies in excess of the $5,042,591 will be bound without Board approval. If additional premiums should be required, they will be presented at a future board meeting.
Information - 4/9/2013
Consent after Information4/23/2013
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