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Lakeland CFO reports 18.3% insurance renewal increase; board weighs options
Summary
The district's CFO told trustees that a recent insurance renewal produced an 18.3% increase in liability, property and cybersecurity premiums after ICRMP coverage changes; trustees discussed coverage breadth, comparison needs and the timing of going out to bid.
Lakeland Joint School District Chief Financial Officer Justin Grant told the board that the district—s insurance renewal produced an 18.3% increase in liability, property and cybersecurity coverage after an insurer change and coverage restructuring.
Grant said the district had expected a smaller increase when ICRMP stopped providing coverage through Horton and Company. Renewed coverage, he said, offers broader limits in several areas compared with the expiring program: for example, the new renewal lists property in course-of-construction coverage at $25,000,000 versus $2,500,000 under the expiring coverage, and a water-damage deductible that is a fixed $10,000 compared with a 20% of loss provision under the expiring program.
Grant told the board he will bring comparative coverage details to the next meeting. Trustees discussed whether to go out to bid; staff said a competitive solicitation would be possible but that timing was tight because the new coverage begins July 1. The CFO recommended moving forward with the renewal to ensure coverage is in place on July 1 while he pursues additional quotes and bid options; he agreed to check the potential consequences of accepting then later terminating the policy.
Board members also raised project-reimbursement questions. Trustees asked whether payments to Lyons O'Dowd and other vendors on the Emrick project were recoverable from a payment bond; staff replied they are pursuing claims and warranty remedies with Architects West and the contractors.
No formal board action was taken at the meeting on the insurance renewal; the CFO recommended finalizing coverage to maintain insurance continuity and returning to the board with comparative quotes and the legal/financial consequences of canceling after acceptance.
