Katy ISD's risk management staff recommended renewing the district's excess workers' compensation reinsurance for plan year 2025-26 under a two-year pricing arrangement, and trustees discussed the proposal during the July 21 work study.

Lance Naumann, Director of Risk Management, told the board the district purchases reinsurance to protect against very large workers' compensation claims on its self-insured program and solicited proposals through a formal RFP. “As a result, the risk management department seeks to renew this program with the proposal submitted by Midwest Casualty,” Naumann said.

Naumann gave the estimated deposit premium and key terms: a planned deposit premium of $151,119 for plan year 2025-26, a specific self-insured retention of $550,000 per occurrence and an accompanying rate of 0.0174. He said the policy term would run 09/01/2025 through 08/31/2026 and that the quoted premium is adjustable based on final payroll. He also told trustees the proposal is quoted as a two-year flat fee that would cover plan years 2025-26 and 2026-27, so the district would not have to re-bid or reapprove a one-year premium next year if it accepts the two-year offer.

Trustee questions focused on term and whether the two-year pricing meant no premium increase for the second year; Naumann confirmed the proposal is a two-year flat fee and that other vendors had offered only one-year quotes. The administration said expenditures for the policy will be paid from the district's workers' compensation internal service fund and asked the board to approve the renewal at the next regular meeting.

No formal motion or vote occurred during the work study; Naumann said authority is granted to acquire the insurance through the district's procurement/legal procedures and recommended board approval at the upcoming regular meeting.