Board approves switching property and liability carriers after premium review
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Summary
After reviewing multiple proposals, the board approved switching property coverage to FM Affiliated and liability coverage to EMC, noting lower overall premium increases and different deductible structures compared with the current Liberty Mutual package.
The Franklin Community School Corp board approved staff’s recommendation to change insurance carriers after a presentation on premium increases and coverage differences. District staff outlined several proposals solicited by the insurance agent and described growing carrier reluctance to insure schools for property, Title IX and other claims.
The presenter said Liberty Mutual, the district’s incumbent, quoted a $111,000 premium increase (about 24%) and would require higher deductibles for several buildings; by contrast, FM Affiliated proposed property coverage with a $100,000 building deductible and EMC offered liability coverage with a smaller overall increase (about $65,000, or roughly 12%). "Liberty Mutual's proposal was for a $111,000 increase, which was 24%," the presenter said when summarizing options.
Staff and the board discussed trade-offs including deductible levels, bus-replacement coverage (noting some carriers limit replacement payments to buses under 10 years old) and the operational complexity of splitting property and liability across carriers. The presenter recommended FM Affiliated for property and EMC for liability and asked for board approval to proceed with those renewals.
A motion to approve the recommended carrier changes passed by voice vote. Staff said the renewal deadline was August 29 and will proceed with contracting under the approved approach.
Next steps: administration to finalize renewals with FM Affiliated (property) and EMC (liability) and report back to the board on final terms.
