Board approves renewal of property/casualty and workers’ compensation coverage; premium near budget

The Carson City School District Board of Trustees on June 24 approved the district’s annual property/casualty and excess workers’ compensation insurance package through the Nevada Public Agency Insurance Pool.

The board approved the renewal motion to continue the district’s pool membership and related policies for the 2025–26 program year. Trustee Varner moved the motion and Trustee Roberts seconded; the motion carried after the board voted “Aye.”

Why it matters: Insurance premiums are a recurring district cost. Staff reported the final program cost came in lower than the budgeted amount, reducing a projected deficit in the nutrition/insurance account.

Program highlights and coverage limits were presented by Wayne Carlson, executive director of the Nevada Public Agency Insurance Pool, and broker representatives. Carlson and pool representatives said the combined insured property values across members exceed $5 billion, a scale that helps negotiate stable access to underwriting capacity in London’s Lloyd’s market. Key points presented to trustees included:

- Program cost: total program cost including pool services not to exceed $959,633.21 for July 1, 2025–June 30, 2026. A self-insurance bond amount was not to exceed $5,400; an excess workers’ compensation policy with Star Insurance Company was quoted not to exceed $78,500. - Property exposures: the pool retained a $300 million per-occurrence limit for property for members and modeled the concentration of district exposures to maintain coverage. - Abuse and molestation sublimit: pool members continue to carry a sublimit for abuse/molestation claims set at $2,500,000, an important coverage component for school districts given rising market pressure. - Cyber coverage: trustees were told the cyber form was simplified this year to a $1,000,000 third-party liability limit and $250,000 in first-party coverage. A deductible was introduced for cyber claims equal to 10% of the loss up to $25,000. - Environmental liability: coverage provided at $2,000,000 with a $25,000 deductible and an aggregate limit of $10,000,000. - Student accident coverage: the pool’s student accident program provides $25,000 per-incident coverage with a $250 family deductible to support students during school-sponsored events.

Pool staff noted claims trends that affect pricing: rising property exposure due to predictive fire mapping, higher auto rates, law-enforcement liability pressure affecting counties and cities, and increased sexual-abuse/ molestation claim activity across public institutions. Carlson said the pool’s long-term relationships in Lloyd’s help the group negotiate limits and pricing that private-market buyers may find less favorable in current conditions.

Superintendent and finance staff noted the renewal cost was about $50,000 under the district’s budget estimate, which will modestly reduce the district’s projected deficit. Board members praised the pool’s risk management services, including network assessments and trainings performed for the district.

Ending: Trustees voted to approve the renewal as presented and thanked pool staff and local committee volunteers for risk-management support.