Seymour Community School Corp. board of trustees took an unusual step Tuesday by voting down Superintendent Rob Hooker’s proposal for liability insurance coverage for the district.
The board will have a special meeting at 7 p.m. July 31 to make a decision on the matter and to discuss the 2019 school budget. The meeting is open to the public.
There was much confusion as to what the board’s next steps would be so there is no lapse in insurance coverage. The district’s current policy with Liberty Mutual Insurance expires Aug. 1.
Hooker had recommended the board stay with Liberty Mutual through local provider Beatty Insurance in Seymour.
Beatty has served as the corporation’s insurance broker for more than 40 years without competition. But this year, another local broker, Moore & Shepherd in Seymour, submitted a quote for the school system’s business.
Trustee Jeff Joray said Moore & Shepherd’s quote came in lower than the district paid last year for insurance and lower than Beatty’s quote this year.
Details of the policies are not being made public at this time.
Business manager Steve Nauman said the district will extend its existing coverage with Liberty through Beatty until the board makes a decision on what route it wants to take.
The vote Tuesday was 4-2, defeating Hooker’s proposal. Board President Art Juergens and trustee Nancy Franke were the two that voted in favor of Hooker’s recommendation.
Joray blamed past school boards and administration for not seeking other options for insurance.
“It’s well founded that in a capitalistic society that the best way to keep prices down is through competition,” Joray said.
He also took issue with the board’s power to negotiate prices with its current broker regardless if another company comes in with a lower quote or better coverage, although he voted to approve the Insurance Request for Proposal specifications on May 8, 2018 to allow this process.
“That alone would keep companies from offering a quote,” he said. “Can you imagine putting in many hours of work to produce something only to have it taken to your competitor that has a higher quote to see if they can beat that price? I didn’t and I don’t see the fairness in that.”
Joray said after payroll and transportation, insurance is the largest expense the school corporation has.
“Unless we’re just a rubber stamp, then we should be involved in this process,” he added.
He said the district should have a policy to seek quotes for liability insurance every 2-4 years.
Hooker warned there could be negative repercussions now and in the future for going against the recommendation.
“When the board crosses this line, you’re in some serious stuff here,” he said. “I understand that you are not a rubber stamp, but what you’re doing tonight, I’ve only seen this twice in 30 years and it never ends well.”
Joray said it’s not a personal decision of who gets the corporation’s business.
“We are dealing with taxpayer’s money,” he said.
Franke questioned how much it will cost the corporation if the board keeps “muddling” the issue.
“We’re stepping into one quagmire after another,” she said.