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Meeting Date:
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7/13/2022 - 7:00 PM
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Category:
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Consent Agenda Items
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Type:
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Action
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Subject:
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Approval of Cyber 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 Cyber Liability, student accident, boiler and machinery, pollution coverage, identity theft coverage and a supplementary fiduciary liability coverage.
In June of 2022, the Board of Education approved all of the above coverages except for Cyber Liability. This was because the CLIC pool was unable to bind coverage prior to the CLIC renewal meeting on May 19, 2022.
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File Attachment:
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Summary:
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The current renewal quote from CLIC for $2M of coverage in Cyber Liability is $103,080 ($1M each from Cowbell and Westchester). This is for the period of July 1, 2022 through June 30, 2023 and represents a 48% increase over the expiring policy year. While the pool coverage includes $2M in cyber coverage, the pool is once again offering an additional cyber coverage option. Tokio Marine Group is providing an additional $1M in coverage at a cost of $41,616. This compares to a cost of $19,360 for the period of 7/1/21-6/30/22. The total cost for the renewal is $144,696.
Cyber claims have escalated in recent years and have had a negative impact on the overall CLIC pool renewal. In addition, fewer carriers are offering Cyber liability coverage, which contributed to CLIC pool struggling to bind coverage in this area prior to the renewal and a reason why coverage is split between multiple carriers for the current renewal year. The renewal pricing is 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 Cyber renewal with CLIC and the additional $1M in coverage totaling $144,696 for the period of July 1, 2022 to June 30, 2023.
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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 Brad Paulsen Moved, Member Susan Booton seconded to approve the Original motion 'It is recommended that the Board of Education approve the Cyber renewal with CLIC and the additional $1M in coverage totaling $144,696 for the period of July 1, 2022 to June 30, 2023.'. 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 | | Dave Long | Yes | | Angela Blatner | Yes | |
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