Livingston Parish board renews excess workers' comp, disaster and crime insurance

The Livingston Parish School Board approved renewals of three insurance policies covering excess workers’ compensation, disaster management and employee-dishonesty (crime) coverage.

Paul O’Brien of Norris Insurance Consultants presented renewal offers and recommended approval. He said the excess workers’ compensation renewal shows no rate change from the carrier but an increase in premium tied to a higher estimated annual payroll. The presentation listed the estimated payroll at $176,000,000 and a renewal premium of $123,004.80, an increase of about $32,000 over the expiring premium; O’Brien said the increase was primarily due to capturing a higher payroll estimate to avoid large audit adjustments later.

For disaster management coverage, O’Brien said there were no changes in coverage and the policy would remain at a $1 million limit with no deductible. The presented annual premium was $16,006.63, about $411 higher than expiring, and O’Brien recommended renewal.

For the excess crime/employee-dishonesty policy, O’Brien presented a one-year renewal with Travelers (through the current agent) showing a $12,006.54 annual premium, roughly $430 lower than the prior year. A representative from Arthur J. Gallagher explained that credits from an older claim with Travelers contributed to the premium decrease. The Gallagher representative said, in effect, as the prior claim recedes in the underwriting history, credits are applied that reduced the premium.

Board members moved and seconded motions to accept the three renewals; the motions carried. The presenters recommended renewal for all three policies and answered members’ questions about payroll estimates and carrier changes.