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Board accepts consultant recommendation on property and casualty insurance amid flood-coverage trade-offs
Summary
Trustees accepted the insurance committee's recommendation to award the district's property and casualty RFP to a package including Lloyd's of London and Liberty Mutual. The discussion focused on deductible choices, flood coverage limits and premium savings.
The Mercedes ISD Board of Trustees accepted the insurance committee's recommendation to award RFP No. 07-14-25-411 for property and casualty insurance to Lloyd's of London (property) and Liberty Mutual (casualty), as submitted through district brokers.
Insurance consultant and broker Mr. Garza told the board two competitive proposals were received and that the recommended option offered a notable premium reduction and, in some coverages, more favorable deductibles. "We got two proposals ... they were very, very competitive," Garza said, and he briefed trustees on differences in flood coverage, deductibles and overall premiums.
Trustees and the consultant examined trade-offs: one option carried a lower deductible for many perils (for example, $50,000) while another option had higher per‑loss limits for flood (one option showed a $2.5 million flood limit versus a $10 million limit under the other option). Garza said the committee reviewed the district's recent claim history and noted flood claims have been a larger component of losses in prior years.
Board members asked whether the committee had weighed deductible differences against premium savings; Garza and committee members said the difference in total premiums between bids was under $50,000 and that the recommended package produced roughly $41,000–$42,000 in premium savings versus the alternative. The board voted to accept the committee recommendation.
Ending: Trustees approved the award by roll call and authorized the superintendent to execute necessary documents; staff said further underwriting detail and finalization will follow with the district's brokers and underwriters.
