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June 27, 2023 Board Meeting
Title
Renew the School Board's Casualty Insurance Policies
Meeting Date(s)
Consent w/o Information - 06/27/2023
Consent Type
Discussion

The District’s Casualty Insurance Program is being negotiated with the insurers.  At present, all quotations are firm with the exception of Excess Workers’ Compensation.  Please note the comments and details that follow:

 

  1. Excess Public Entity Liability: This policy is provided by Safety National Insurance Co. and will cover the District for Excess General Liability (including sexual harassment and sexual abuse), Auto Liability, and Employee Benefits Liability up to $2,000,000 in coverage subject to a $500,000 per claim self-insured retention.  School Board miscellaneous liability (Errors & Omissions, Employment Practice liability, Individual with Disability and Education Act Claims, and sexual harassment and sexual abuse claims) up to $2,000,000 in coverage are subject to a $250,000 per claim self-insured retention.  The 2023-24 policy premium increased 8.2% from the previous year for a total premium cost of $271,147.00.

 

  1. Excess Workers’ Compensation:  This renewal policy by Safety National Insurance Co. covers the district of all workers’ compensation claims exceeding $1,350,000 in claim payments, with a rate of .1154 and lower than that of the 2022-23 renewal.  Increase in severity and rising medical costs can negatively impact workers’ compensation claims.  This policy was competed, and Safety National offered the most competitive rate and terms The 2023-24 premium cost is $468,852.00.

3. Crime:  This policy offered by Hanover Insurance covers the district for all financial losses associated with employee theft funds subject to a $25,000 per claim deductible.  This is the third year of our three-year policy; all terms and conditions remain the same, with the exception of the FIGA – Florida Insurance Guaranty Assessment of $29.00 for a total cost of $9,888.00.

 

  1. Cyber Liability:  This policy is provided by Hudson Insurance Company and will cover the district subject to a $250,000 per claim deductible for privacy and network security, Electronic, Social, Print Medica, cyber incident response, and Network Extortion up to $1,000,000.  This policy premium has remained flat at $115,195.00.  Premiums for cyber have improved as the district has implemented security controls.

 

 

  1. Catastrophic Student Accident:  The policy offered by Zurich Insurance covers students that suffer an injury whose medical costs exceed $25,000 when the claims are associated with physical education classes, marching band, and Florida High School Athletic Association (FHSAA) practices and competitions.  This policy is compliant with FHSAA requirements.  The 2023-24 premium renewed at less than a 2% change in cost at $7,846.00.

 

Coverage

 

Limits

Expiring

2022-2023

Estimated Proposed

2023-2024

Variance

Excess Public Entity Liability

 

 

 

 

  • General Liability

$2,000,000 / 4,000,000

Safety National

Safety National

 

  • Automobile Liability

$2,000,000

$250,581.00

$271,147.00

8.2%

  • Public Officials Liability

$2,000,000 / $2,000,000

 

 

 

  • SIR

$500,000

 

 

 

  • SIR E&O /EPLI

$250,000

 

 

 

 

Excess Workers’ Compensation

 

$1,000,000

$418,387.00 @ $1,250,000 SIR

$468,852.00

@ $1,350,000 SIR

.1154%

 

Crime Insurance

 

$9,859.00

$9,888.00

.3%

Cyber Liability

$1,000,000 / $1,000,000

$115,000.00

@ $250,000 SIR

$115,000.00

@ $250,000 SIR

0%

Catastrophic Student Accident

 

$7,705.00

$7,846.00

1.82%

Total Program Cost

 

$793,827.00

$872,733.00

10.5%

Recommendation

To grant the Superintendent authority to bind the School Board’s Casualty insurance policies in the amount of $963,881.

Authority for Action
Board Policy 8710
Involves Expenditure of Funds Directly in the Classroom
No
Source of Funding

Operating - Other
Financial Impact
*FY Amount Budgeted Fund Cost Center Project Function Object Program
23/24 $271,147.00 YES 100 9855 001164 7900 324 000
23/24 $468,852.00 YES 713 9855 001002 7790 780 000
23/24 $9,888.00 YES 100 9855 001164 7900 324 000
23/24 $115,000.000 YES 100 9855 001164 7900 322 000
23/24 $7,846.00 YES 100 9855 001164 7900 323 000
Legal Counsel Review
No
Contact
Rosemary Browning, Manager Labor Relations for: Antonia Scipio, Director, Office of Employee Benefits and Risk Management, ext. 11620 Cindy Lesinski, Chief Financial Officer, ext. 11600
Attachments

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