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Meeting Date:
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Category:
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Type:
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Subject:
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Approval of Liability Insurance with CLIC |
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Vision 2026:
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Financial & Facilities Management 1 Continue to ensure a balanced budget that builds and maintains a fund balance that meets Board policy.
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Background:
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The district is a member of the Collective Liability Insurance Cooperative (CLIC) which is made up of approximately 188 school districts. The cooperative offers a comprehensive insurance package which includes property, excess property, general liability, excess liability, auto liability and physical damage, EDP, crime, as well as school board legal liability. The pool also covers student accident, boiler and machinery, pollution coverage, identity theft coverage and a supplementary fiduciary liability coverage.
In June 2021, the Board of Education approved the insurance renewal with CLIC in the amount of $656,3226. The policy term was for the period of July 1, 2021 to June 30, 2022. The supplementary fiduciary policy was an additional $2,150. The Board also purchased another $1M in cyber coverage above the base $2M policy at a cost of $19,360. |
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File Attachment:
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Summary:
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The current renewal quote from CLIC is $602,791. This is for the period of July 1, 2022 through June 30, 2023 and represents a 8.16% decrease over the expiring policy year, but does not include the Cyber policy. CLIC's Cyber policy is still being negotiated between the pool administrator and the carrier. For the 2021-22 policy year, our Cyber policy cost was $89,151, which included an extra $1M in Cyber coverage over the $2M included in the package. Cyber claims are impacting the insurance market to the point that the pool struggled to bind coverage in this area prior to the renewal meeting on May 19, 2022. We are expecting to bring the Cyber renewal to the Board of Education for approval in July 2022.
The purchase of the fiduciary policy, which is outside of the annual renewal costs described above, is priced at a flat renewal of $2,150. The fiduciary policy provides coverage against liability claims related to employee benefit plans that are managed or administered by the district.
Copies of both renewals are attached for your reference. |
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Funding:
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2022-2023 Education Fund Budget |
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Board Policy: |
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4:10 Fiscal & Business Management |
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Recommendation
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It is recommended that the Board of Education approve the renewal with CLIC in the amount of $602,791 for the term of July 1, 2022 to June 30, 2023, as well as the fiduciary policy at $2,150. |
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Approvals:
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Recommended By: |
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Signed By: |
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Brian O'Keeffe - Asst Superintendent Business Services |
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Signed By: |
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Jeff Schuler - Superintendent |
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Vote Results:
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| Original Motion | | Member Susan Booton Moved, Member Brad Paulsen seconded to approve the Original motion 'It is recommended that the Board of Education approve the renewal with CLIC in the amount of $602,791 for the term of July 1, 2022 to June 30, 2023, as well as the fiduciary policy at $2,150.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 6 Nay: 0. | | The motion Carried 6 - 0 | | | | | Brad Paulsen | Yes | | Chris Crabtree | Yes | | Rob Hanlon | Yes | | Susan Booton | Yes | | Mary Yeboah | Yes | | Angela Blatner | Yes | |
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