Discussion
The district’s casualty insurance policy negotiations are complete and the proposed rates for renewal of all casualty insurance policies is $803,341. This renewal is an overall increase of 4.1% or $31,592 more than the expiring policies. Details of the policies are as follows:
- Excess Public Entity Liability: This policy will be moved from Lloyds of London (Britt Insurance) to Safety National Ins 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 2022-23 policy premium increased 0.63% or $1,581 from the previous year for a total of premium cost of $250,581.
- Excess Workers’ Compensation: This policy offered by Safety National covers the district for all Workers’ Compensation claims exceeding $1,250,000 in claim payments, which is a $400,000 increase in the retention level over last year. The policy premium has decreased by 5.8% or $25,783.32 due to an option with a higher retention. Increase in severity and rising medical costs negatively impact Workers’ Compensation claims. This policy was competed, and Safety National offered the most competitive rate and terms as well as the additional credit from the Excess Public Entity Liability. The 2022-23 premium cost is $418,387
- Crime: This policy offered by Hanover Insurance covers the district for all financial losses associated with employee theft of funds subject to a $25,000 per claim deductible. This is the second year of our three-year policy; all terms and conditions remain the same. The remaining year will be priced at the same rate unless there is substantial change in claims. The 202-23 premium cost is $9,859.
- Cyber Liability: This policy has been moved to Hudson Insurance Company for 2022- 2023 and will cover the district subject to a $250,000 per claim deductible for privacy and network security, Electronic, Social, Print Media, cyber incident response, and Network Extortion up to $1,000,000. By changing the carriers, the deductible has decreased from $500,000 to $250,000 compared to expiring. The policy premium has increased 52% or $59,031 more than the expiring policy. The reason for the increase was one large full policy limit loss that the district experienced last year. This sector of insurance has been hit very hard this year due to foreign hackers disturbing US computer sector and this has also affected the district’s renewal. The 2022-23 premium cost is $115,195.
- 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 2022-23 premium renewed at the same rate as the expiring policy or $9,319.
|
Coverage
|
Previous 2020-2021
|
Expiring 2021-2022
|
Proposed 2022-2023
|
Variance
|
|
Excess Public Entity Liability
- General Liability
- Automobile Liability
- Public Officials Liability (E&O)
|
$234,000.00
|
$249,000.00
|
$250,581.00
|
0.63%
|
|
Excess Workers’ Compensation
|
$321,445.00
|
$448,546.00
|
$418,387.00
|
-5.8 %
|
|
Crime Insurance
|
$9,585.00
|
$9,859.00
|
$9,859.00
|
0.00%
|
|
Cyber Liability
|
$24,400.00
|
$62,604.00
|
$115,195.00
|
52%
|
|
Catastrophic Student Accident
|
$9,319.00
|
$9,319.00
|
$9,319.00
|
0.00%
|
|
Total Program Cost
|
$690,060.00
|
$779,328.00
|
$803,341.00
|
4.1%
|
|
