Murphysboro CUSD 186 board approves insurance renewals, authorizes $98,000 rise in tort-related costs

The Murphysboro CUSD 186 Board of Education voted to approve the district’s property-liability and workers’ compensation renewals after staff outlined increases in coverage costs tied to recent construction and claims.

At the meeting, a district staff member explained that replacement-value reassessments — including a new gymnasium — and a rise in liability exposure led underwriters to increase some property coverage by about 21 percent. The staff member also said the district’s workers’ compensation loss ratio had risen because of recent large claims, producing an overall combined increase of roughly $98,000 to property-liability and workers’ compensation costs. “So we’re looking at a $98,000 increase in our work comp and property liability this year,” the staff member said.

The staff member told the board the added cost will be paid from the district’s tort fund rather than the education fund, and that the district remained with its broker Manuel and with ISDA to retain earthquake coverage that other carriers would not match; the district uses Lehi Bend Insurance for workers’ compensation. Board members asked clarifying questions about local soil conditions and the impact of mine undermining near school facilities; staff said those local risks inform the district’s need for replacement-value coverage.

After discussion the chair moved to approve the renewals; the motion was seconded and carried on an aye vote.

The action does not change instructional funding but increases tort-fund expenditures for the fiscal year. The board did not specify further cost-allocation changes at the meeting.