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Board authorizes renewal of liability and auto physical‑damage insurance; premiums rise about $55,000 overall
Summary
The board authorized a 12‑month renewal of educational liability and auto physical‑damage insurance covering July 1, 2026–June 30, 2027; district staff said premiums are rising (about 7% for liability, 31% for auto physical damage) for a combined annual premium of $777,489 and an estimated FY27 increase of roughly $55,000.
Dr. Travis Shaw presented the district’s proposed 12‑month renewals for educational liability and auto physical damage insurance, noting both policies were extended for three months earlier and now require a full 12‑month renewal effective July 1, 2026.
Shaw said United Educator offered a renewal of the educational liability program with an approximate 7% premium increase, and Hanover Insurance proposed to renew auto physical damage coverage with an annual premium increase of 31%. Shaw framed the increase in the auto premium as primarily the result of higher replacement value for the district's vehicles and said the 31% increase translates to roughly $9,000 annually in absolute terms. He reported the combined premium for the two policies is $777,489 and said the total FY27 premium increase versus FY26 is approximately $55,000.
Board members asked clarifying questions about policy limits, per‑loss limits and whether terrorism coverage was included. An insurance representative, Jeff (present with Alice Acre and Arnie's), answered technical questions and explained that many insurers exclude foreign‑act terrorism endorsements because certification requirements are narrow and the coverage uncommon for a mid‑sized city; Jeff estimated purchasing that coverage would likely cost a few thousand dollars if the district chose to add it.
The board authorized the renewals; the motion passed with seven affirmative votes.
Ending: The renewals will take effect July 1, 2026; staff said any additional, optional endorsements (for example terrorism) could be purchased at board direction.
