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Board approves MIST property insurance and SFM workers' comp amid claims discussion
Summary
The board approved a $856,712 property and liability insurance renewal with the Minnesota Insurance Scholastic Trust and awarded a $667,948 workers' compensation contract to SFM; trustees questioned rising workers' compensation experience modifiers and asked for further safety reporting.
The White Bear Lake Area School Board approved two insurance-related contracts for 2026-27: a property and liability package through the Minnesota Insurance Scholastic Trust (MIST) at $856,712 and a workers' compensation policy with SFM Mutual at $667,948.
Finance staff said the MIST renewal represents a 7% decrease from the expiring premium ($922,832) and attributed the reduction to a new GovPro property program and pooled purchasing that spreads risk across multiple states. Nick Lano, area senior vice president at Gallagher (the district's broker and MIST administrator), explained the program structure, surplus levels and risk-spreading benefits and answered technical questions about equipment breakdown coverage and a $2,500 deductible for equipment claims.
On workers' compensation, staff presented SFM's low bid of $667,948 but noted a 14% increase over the previous year due to payroll growth and a higher experience modification (X-mod). Tim and Nick described recent claim dollars for policy years 2022–25 and explained that some figures reflect open reserves rather than paid payouts. Member Daniel Skaar pressed staff on X-mod drivers, classification of payroll, OSHA reporting and whether the district consolidates or separates facility reporting; staff agreed to provide additional follow-up and a deeper briefing on safety, OSHA reporting and classification questions.
Both insurance motions were approved by roll call; the property package and the workers' compensation contract passed with unanimous board support.
Next steps: Staff will finalize contracts with MIST and SFM and provide the board additional detail about safety-reporting practices and X-mod drivers as requested.
