District insurance costs rise; board cites market increases as reason to preserve reserves

The Greater Albany Public SD 8J board on Monday approved the district’s insurance renewals after Finance staff described market-driven increases across multiple coverages.

Jane told the board she had met with the district’s insurance agent and that liability and workers’ compensation rates had risen substantially because of broader market trends and recent costly claims. She said the district qualified for a $10 million abuse/misconduct liability limit but that industry pricing had increased and some insurers were reducing their limits.

“The increase was … largely because of the greater market, the liability increases, and the way that awards are being done through the judicial system,” Jane said. She added that workers’ compensation rose in part because the district had several costly claims in 2023.

Board members cited the insurance increases as one reason to maintain the district’s 8% reserve rather than draw it down to fund short-term needs. “This is just another indicative result of the costs that are facing the district and why we need that reserve fund to be able to take care of these surprises when they come up,” a board member said.

The board approved the insurance renewals as presented; staff said they will continue to monitor whether purchasing additional abuse/misconduct liability limits is necessary.

Ending: Staff will follow up with insurance agent and administration on whether additional coverages are required and report back to the board if changes are recommended.