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Business manager reports steep insurance rise; board hears cyber-insurance upgrade options
Summary
The district’s business manager told the Tea Area School District 41-5 board that property-liability premiums rose by nearly $100,000 (driven by the high school expansion) and recommended raising cyber coverage to a $500,000 limit with a $50,000 sublimit for about $2,000 more annually; the item was given as information and will take effect or be approved next month as needed.
The district’s business manager reported that property-liability insurance premiums increased by almost $100,000 year over year, primarily due to premium costs associated with the recent high school expansion. The manager said general-liability and automobile lines saw modest increases after several accidents and that the district added larger buses, which also affects premium calculations.
On cyber insurance, the manager explained the district’s current policy provides a $50,000 overall limit with a typical sublimit of $10,000 for most incidents; she presented three upgrade options: raise the limit to $250,000 with a $25,000 sublimit; raise to $500,000 with a $50,000 sublimit for an additional $2,000 annually; or purchase a $1 million policy (higher sublimit) for substantially more. The manager recommended the $500,000 limit as a reasonable step, saying it broadens protection against wire-transfer and bank-fraud exposure.
The board discussed internal controls—who enters payment files, who signs checks and how direct-deposit and vendor changes are verified—and the manager described current procedures (data entry, cross-checking, physical forms required for direct-deposit changes) to reduce fraud risk.
No formal vote on the insurance changes was taken at the meeting; the manager indicated the policy changes will take effect and would be included in next month’s financial approval as appropriate.
