Insurance renewals show premium increases; district and broker pursue flood coverage after carrier removes two schools

The district’s property and liability renewals presented to the finance committee on June 10 reflected price increases and raised a separate operational concern: the district learned at final renewal that the carrier’s flood endorsement would not cover two district buildings, and the broker is seeking alternate flood coverage.

Finance staff summarized multiple renewals and options in the packet, including general property and liability (total premium for core lines about $724,000 with a $5,000 deductible, an alternative $10,000 deductible would reduce premium slightly), a $10 million commercial umbrella, school‑leaders liability, cyber liability and other lines. The cyber liability renewal arrived higher than last year and the broker returned multiple quotes. School leaders liability and other required coverages were included in the packet.

During the final renewal review, finance staff said the district was notified that the insurer (a carrier group the district has used through a program previously aligned with PSBA) would not provide flood coverage on two buildings (Central and Daimler) under its renewal package. Staff said the carrier described using a proprietary underwriting process to determine flood exposure for school‑district facilities, and said the carrier had reduced the number of excluded buildings from an earlier list; the district’s broker (Willis Towers Watson) is searching for flood coverage options for the affected sites and is communicating with the carrier about the underwriting rationale. Staff described the situation as a last‑minute development that many districts are facing in their renewals and said they have asked the broker to pursue immediate alternatives so that the district does not lapse in flood coverage for those sites.

Committee members asked clarifying questions about the carrier’s rationale and whether the district could purchase separate flood coverage for the two buildings; staff said the broker is pursuing options and will report back as soon as extra coverage quotes are available. Staff also noted that workers’‑comp, boiler and other lines continue in the renewal packet and that the district needs carrier coverage in place by July 1.

No procurement decisions beyond routine renewals were made at the committee meeting; staff said they will provide updates as broker information becomes available.