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Board hears options to lower a six-figure school insurance deductible
Summary
School officials and an insurance broker outlined options to lower the district's large property deductible and discussed whether to appoint Walker Hughes as the district's broker ahead of a September policy renewal.
Maconaquah School Corporation trustees spent nearly an hour on May 27 reviewing the district's commercial-insurance options after administrators flagged a large property deductible and limited market capacity for school risks.
The board heard from an insurance representative identified in the meeting as representing Walker Hughes, who said the district currently carries a very large per-claim deductible and described a "buy down" option that could reduce that exposure. "We can actually price a $25,000 deductible," the broker said, adding that the buy-down is rated to the property valuation and has been used successfully by neighboring districts.
Why it matters: A high deductible exposes district reserves and can complicate recovery from a catastrophic property loss; trustees said they want lower out-of-pocket risk while keeping premiums manageable.
Administration said the district's policy renews in September and asked whether the board wanted to designate Walker Hughes to serve as the district's agent so that the firm could solicit bids on the board's behalf. Board members pressed for detail on how the buy-down would be funded, whether a trust or consortium approach would yield better pricing, and how the district's rural property exposures (for example, athletic fields and agricultural land) affect underwriting.
The broker told trustees there are relatively few carriers actively writing school property programs and that market appetite fluctuates; he encouraged the board to let a designated broker work the market rather than simultaneously engaging multiple brokers, which can "lock out" underwriters. Trustees asked for comparative quotes, a clear timeline before the September renewal, and a staff recommendation about whether to approve a broker designation.
What was said: The broker argued the issue is solvable through persistence and the right marketing: "We've got this program that we developed...it's worked out really well with a lot of the surrounding schools," he said. Trustees asked for the district's claims history and a proposal showing premium, deductible, and coverage options before any decision.
What's next: Administration said it will return with formal proposals and a recommendation prior to the September renewal; no formal action was taken at the May 27 meeting.
