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Superintendent says East Grand Forks schools may be 'under insured' as board reviews property-casualty renewal
Summary
Superintendent Kevin Grover told the East Grand Forks Public School Dist. board the district's insured replacement value may be too low and flagged a recent premium increase tied to workers' compensation; trustees approved the insurer recommendation but did not raise limits at the meeting.
Superintendent Kevin Grover told the East Grand Forks Public School Dist. board that the district’s buildings may be underinsured and urged trustees to consider replacement-value limits while they obtain quotes from brokers.
Grover said the district’s current insured replacement total is listed at about $137 million and that a broker indicated sample per-square-foot replacement estimates for school buildings run roughly $315–$400, depending on facility type. He said a three-year average for workers’ compensation accounts for about $15,000 of an approximately $26,000 premium increase in the property-casualty renewal.
“...we’re, quote-unquote, kind of under insured,” Grover said, describing a scenario in which a catastrophic loss of all buildings would exceed the district’s current limits. He told trustees insurers had warned that without higher limits some carriers could stop offering coverage or decline to provide market quotes.
The superintendent also summarized recent stop-arm enforcement data provided by city staff: officials identified 29 cases that were complete for follow-up and reported 21 convictions in city-processed cases. “21 convictions is a lot if you ask me,” Grover said, characterizing the enforcement program as effective at producing chargeable cases.
Board members asked about comparable districts and the mechanics of adjusting insured values. Grover said he would follow up with the district’s broker, Marsh McLennan, for detailed replacement-cost estimates and to determine how much rising limits would change annual premiums.
At the same meeting trustees approved a renewal package with the district’s broker (see separate item listing the formal vote), but Grover said he was not recommending an immediate increase in limits that night; he urged the board to weigh the cost of higher premiums against the risk of being underinsured and to consider options for phased increases. The board did not adopt a new insured-value figure during the meeting.
