Risk manager recommends moving workers' compensation coverage into joint school pool to save about $200,000 annually

Adams 12’s director of risk management recommended the district switch its workers’ compensation insurance from its current carrier to a joint school district pool (JSD), telling the board on May 7 the move could save roughly $200,000 a year.

Radu, the district’s director of risk management, said the district currently retains a high deductible (about $500,000) and pays roughly $1.6 million per year for claims, adjusting and excess coverage. Under the JSD proposal the retention would be comparable ($550,000) and the pool would spread losses across member school districts; Radu said the pool’s actuarial estimate would lower Adams 12’s net cost and produce the estimated $200,000 annual savings.

Nut graf: Switching to a member-run pool would give the district a seat at the governance table and more direct input into claims-handling practices, negotiators said — advantages that matter because workers’ comp costs come out of the general fund and influence school budgets.

Radu told the board the pool’s members include several large metro districts and that the pool uses a third-party administrator (CCMSI) that specializes in public-entity claims. He said the proposed transition would keep existing claims with the current carrier until they close and that the JSD board and state approval are required before any change.

Board members asked for confirmation about legal-cost exposure and noted the district’s historical record of few claims involving outside counsel. The risk manager said he expects similar volume and control of claims but more membership oversight of trends and costs.

Ending: The board received the recommendation; staff said they will seek necessary approvals and return with details and implementation steps.