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School district seeks $2 million umbrella liability policy at cost of $73,976
Summary
Staff presented an optional $2 million umbrella liability policy to extend coverage beyond the district's base policy for contract requirements and rising national claims costs.
Lee's Summit R-VII staff presented a proposal for an additional umbrella liability insurance policy that would provide $2 million of extra coverage at a cost of $73,976 for the district's upcoming policy year.
"This is our additional umbrella liability insurance that, provides additional, $2,000,000 of, liability insurance to extend past what is provided under our current policy," Ryan Hall, a district staff member, told the committee. He said the premium for the additional $2 million of coverage is $73,976.
Hall told the committee the extra coverage responds to two factors: contract requirements that demand coverage above the district's current base policy limits and a national increase in insurance claims. "Number 1 is because we have contracts that require, more than our base liability coverage ... I think it's 5,000,000," Hall said. He also cited increased insurance claims nationally as a reason to secure additional coverage.
Staff indicated the umbrella policy would help meet contract limits and reduce the district's exposure to large claims. Committee members did not record a formal vote in this meeting; staff said the umbrella premium and policy details will be brought forward for board approval as part of insurance renewals.
The district referenced its existing insurer arrangement through MUSIC as part of the renewal conversation but did not provide the umbrella policy carrier in the presentation.
