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Board approves new workers’ compensation insurance option after insurers dropped district last year
Summary
Facing higher claims and an elevated experience modification factor, the Smithville R‑II board approved a workers’ compensation premium option with a higher deductible to maintain coverage; board members discussed rebidding and broker selection for future cycles.
The Smithville R‑II Board of Education approved a workers’ compensation and employer’s liability insurance arrangement at Monday’s meeting, accepting a proposal staff said balances premium increases and coverage continuity after the district faced provider changes earlier this year.
Administration told the board that the district’s experience modification factor rose from about 1.30 to 1.71 because of high claims in 2023–24. That change, plus payroll growth, contributed to a premium increase staff estimated at roughly $33,000 compared with the prior renewal cycle. To reduce near‑term premium costs, the district recommended a $10,000 deductible (rather than $5,000), and administration presented a market comparison that favored the recommended broker/underwriter for the current year.
Board members debated procurement process questions: one board member argued the district’s policy requires an RFP for a brokerage firm rather than relying on a single broker to solicit quotes, and another said immediate rebidding could be difficult while the modification factor is elevated and carriers are hesitant. Administration advised that coverage cannot lapse and that current contracts allow the district to cancel if it pursues a different arrangement later; staff recommended proceeding now and pursuing a broader rebid and additional market work in the spring when claims experience may be favorable.
The board voted to approve the recommended premium option (option 2 in the administration memo) with the higher deductible to maintain continuous coverage. Administration said it will continue market outreach and planning for a broader procurement process when timing and market conditions improve.
