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District reports lower insurance premiums after pool negotiations; board to review cyber-coverage options
Summary
The district reported a 3.85% decrease in workers' compensation premiums and a roughly 13.75% reduction in property/casualty pooled premiums, saving an estimated $175,000 next year and approximately $600,000 across pooled premiums; staff will explore higher cyber limits and return cost estimates to finance.
Mert Woodard, the district’s director of finance and operations, told the board the workers' compensation renewal produced a 3.85% premium decrease (about $20,000) after partnering with the carrier SFM and improving the district’s claims experience (x-mod now about 0.86).
"We peaked at about 1.06 a couple of years ago... We are now down to about 0.86," Woodard said, citing a year-over-year drop in incurred claims that will lower next year’s premiums.
On property and casualty coverage, Woodard described the district’s participation in the Minnesota Insurance Classic Trust (NIST) and said recent market softening plus a new excess carrier offering have produced a roughly 13.75% rate decrease, which he estimated will save about $175,000 in the district’s pool premiums next school year and roughly $600,000 across the pool over the budget cycle.
"All in all, that's gonna result in about a $175,000 large savings," Woodard said, and later summarized the pooled savings estimate: "we'll be saving, roughly $600,000 in premiums, which is amazing news."
Woodard told trustees the district will add water-sensor devices to help prevent catastrophic water damage (placed near gyms, boiler rooms and data closets) and will consider whether to increase cyber-coverage limits, noting the district currently holds $2 million aggregate and per-incident coverage.
Board members encouraged staff to cost out raising cyber limits to $3 million or $5 million and to bring those options back to the finance committee. No formal approval was requested at the work session; staff will bring the renewal paperwork and any recommendation to the June meeting for board action if required.
