06-09-2015 Regular School Board Meeting
Agenda Item #9


Title
School Board's Casualty Insurance Policy Renewal

Discussion

The District's casualty insurance negotiations are complete and the proposed rates for renewal of all casualty insurance policies is $622,685.  The renewal rate is $44,775 more than previous years, but this increase is mainly due to two particular areas of exposure. First, we are adding a new cyber liability insurance policy that will cover the District for claims associated with a breach of information due to in-house losses, vendors that hold or use District data, hackers, stolen/lost electronic devices including thumb drives, cloud storage, paper files, copy machines, drop boxes, cyber extortion, data restoration, crises response expenses, etc. Second, the excess workers' compensation insurance policy has increased due to the District's increased payroll. In addition, the excess workers' compensation marketplace is tighter as fewer carriers are providing coverage in this area (there are four carriers plus four trusts providing coverage). All the other areas of exposure were marketed to more than 20 different carriers. The pricing and terms for each of the areas of exposure can be found in the attachment.



Recommendation
To grant the Superintendent authority to bind the School Board’s casualty insurance policies in an amount of $622,685.

Meeting Date(s)
Information - 5/26/2015
Consent after Information6/9/2015

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
15/16$252,022.00Yes10098550011647900323000
15/16$10,355.00Yes10098550011647900324000
15/16$360,308.00Yes71398550010027760779000

Contact
Mark Langdorf, Director of Risk Management, Ext. 620
Judy Preston, Associate Superintendent of Financial Services, Ext. 600


Attachment:  2015-16 Casualty Insurance Cost Final.pdf