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Central SD 51 recommends adding $25,000 funds-transfer fraud coverage as renewal stays below market increases
Summary
District administrator Dale Heidbreder told the board the district's insurance renewal shows a 6.1% premium increase—well below market averages—and recommended adding $25,000 of Computer & Funds Transfer Fraud coverage to the Crime policy to address recent intercepted checks and diverted ACH/wire incidents.
District administrator Dale Heidbreder told the Committee of the Whole on March 10 that the district's property and casualty renewal was "very favorable" compared with recent market demands and recommended "adding $25,000 in coverage for Computer & Funds Transfer Fraud to the Crime policy." He said the suggestion responds to several recent fund-transfer fraud claims reported by other districts, including intercepted checks and diverted ACH/wire transfers.
Heidbreder added that "the overall premium increase is 6.1%," notably lower than the 10–15% pure-rate increases many carriers are seeking for property coverage because of poor loss histories and other exposure changes. No formal vote on the endorsement was recorded in the minutes; the recommendation was presented for board consideration.
