The Ann Arbor Public School board was briefed on the district’s liability insurance renewal at its Feb 27, 2013 meeting. For the past couple of months, the district’s insurance agent, The Hyland Group, has been bidding out the district’s liability insurance in anticipation of a Feb. 1, 2013 renewal. Several insurance carriers for property and casualty were contacted and responded, but the district’s best option for renewal was to stay with its current carriers, according to a district memo. Those carriers include: Affiliated FM for buildings and property; Zurich for general liability, crime, auto; Ace for lawyers liability; and Selective for flood insurance.
The district’s final liability insurance premium will be $716,476. The renewal premium reflects an overall increase of 5.9%, which is less than current market conditions. The increase does not reflect the district’s loss history this past year, which has been favorable.
The NFIP was purchased this year because Affiliated FM (the district’s property insurance carrier) identified eight buildings located in a low hazard flood zone as locations that are “at risk.” Affiliated FM would insure those buildings only with a $5 million limit and a $1 million deductible. As this was a large deductible that could potentially put the district at financial risk, the additional NFIP from Selective Insurance was purchased to cover the gap, which would insure the buildings up to $1 million with a $1,000 deductible. The NFIP coverage goes into effect March 6, 2013 and costs an additional $30,732.
All policies except the NFIP coverage went into effect Feb. 1, 2013 and will expire on Feb. 1, 2014. The presentation as a first briefing to the AAPS board came on Feb. 27, 2013. The board will need to vote on the issue at its next meeting.
This brief was filed from the board room of the Ann Arbor District Library in downtown Ann Arbor at Fifth and William. A more detailed report of the meeting will follow: [link]